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MarketScreener Homepage  >  Equities  >  Toronto Stock Exchange  >  Capstone Mining Corp.    CS   CA14068G1046


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Capstone Mining : Announces Closing of $150 Million Silver Stream Agreement with Wheaton Precious Metals, Achieves Net Cash Position

02/22/2021 | 09:51am EDT

VANCOUVER - Capstone Mining Corp. ('Capstone' or the 'Company') (TSX: CS) is pleased to announce that it has closed the previously announced Precious Metals Purchase Agreement with Wheaton Precious Metals International Ltd., a wholly-owned subsidiary of Wheaton Precious Metals Corp. (collectively, 'Wheaton').

All conditions to complete the Stream Agreement have been fulfilled and Capstone has received $150 million from Wheaton for 50% of the silver production until 10 million ounces have been delivered, thereafter dropping to 33% of silver production, for the life of mine from the Company's Cozamin Mine in Zacatecas, Mexico ('Cozamin'). Wheaton will make ongoing payments equal to 10% of the spot silver price at the time of delivery for each ounce delivered to them.

'With a current net cash position, this transaction gives Capstone one of the strongest balance sheets amongst its peers,' said Darren Pylot, President & CEO of Capstone. 'Additionally, we are expecting around one billion dollars of after-tax operating cash flow over the next three years in the current $4.00 copper price environment. We look forward to strengthening our partnership with Wheaton as we continue advanced discussions for a potential gold stream on Santo Domingo.'


Capstone Mining Corp. is a Canadian base metals mining company, focused on copper. Our two producing mines are the Pinto Valley copper mine located in Arizona, US and the Cozamin copper-silver mine in Zacatecas State, Mexico. In addition, Capstone owns 70% of Santo Domingo, a large scale, fully-permitted, copper-iron-gold project in Region III, Chile, in partnership with Korea Resources Corporation, as well as a portfolio of exploration properties. Capstone's strategy is to focus on the optimization of operations and assets in politically stable, mining friendly regions, centred in the Americas. We are committed to the responsible development of our assets and the environments in which we operate. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX).


This news release, and the documents incorporated by reference herein, contains 'forward-looking information' within the meaning of Canadian securities legislation and 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, 'forward-looking statements'). These forward-looking statements are made as of the date of this document and Capstone Mining Corp. ('Capstone' or the 'Company') does not intend, and does not assume any obligation, to update these forward-looking statements, except as required under applicable securities legislation. Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events. Forward-looking statements include, but are not limited to, statements with respect to the future copper price and cash flow expectations, continuing success of mineral exploration, Capstone's ability to satisfy the conditions of closing of the Stream Agreement and complete required corporate matters, there is no certainty a transaction on Santo Domingo will be completed on favourable terms or at all, Capstone's ability to fund future exploration activities, the estimation of mineral resources and mineral reserves, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production and capital expenditures, the cost of capital expenditures for the Santo Domingo Project, our ability to separate any permits required for the Santo Domingo Port if necessary, the success of our mining operations, the estimation of increased cathode production, the ability to obtain required permits for the intended expanded leaching activity, the estimation of the expected economics of the expanded leaching activities, the estimations for potential quantities and grade of inferred resources and exploration targets, environmental risks, unanticipated reclamation expenses and title disputes. In certain cases, forward-looking statements can be identified by the use of words such as 'plans', 'expects', 'aiming', 'approximately', 'guidance', 'scheduled', 'target', 'estimates', 'forecasts', 'extends', 'convert', 'potential', 'intends', 'anticipates', 'believes' or variations of such words and phrases, or statements that certain actions, events or results 'may', 'could', 'should', 'would', 'will', 'might' or 'will be taken', 'occur' or 'be achieved' or the negative of these terms or comparable terminology. By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, amongst others, permitting risks related to the Santo Domingo Port, risks related to inherent hazards associated with mining operations and closure of mining projects, the inherent uncertainty of mineral exploration and estimations of exploration targets, potential delays in exploration or interruption of production directly or indirectly related to COVID-19 or governmental action, future prices of copper and other metals, compliance with financial covenants, surety bonding requirements, our ability to raise capital or fund explorations, Capstone's ability to acquire properties for growth, counterparty risks associated with sales of our metals, foreign currency exchange rate fluctuations, changes in general economic conditions, risks associated with hedging strategies, accuracy of mineral resource and mineral reserve estimates, operating in foreign jurisdictions with risk of changes to governmental regulation, compliance with governmental regulations, compliance with environmental laws and regulations, reliance on approvals, licences and permits from governmental authorities, impact of climatic conditions on our operations, aboriginal title claims and rights to consultation and accommodation, land reclamation and mine closure obligations, uncertainties and risks related to the potential development of the Cozamin project, increased operating and capital costs, challenges to title to our mineral properties, maintaining ongoing social license to operate, dependence on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent in our insurance coverage, labour relations, increasing energy prices, competition in the mining industry, risks associated with joint venture partners, our ability to integrate new acquisitions into our operations, cybersecurity threats, legal proceedings, and other risks of the mining industry as well as those factors detailed from time to time in the Company's interim and annual financial statements and MD&A of those statements, all of which are filed and available for review under the Company's profile on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements not to be as anticipated, estimated or intended. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.


Jerrold Annett

Tel: 647-273-7351

Email: jannett@capstonemining.com

(C) 2021 Electronic News Publishing, source ENP Newswire

Stocks mentioned in the article
ChangeLast1st jan.
CAPSTONE MINING CORP. 0.92% 4.39 Delayed Quote.84.45%
WHEATON PRECIOUS METALS CORP. 0.00% 52.64 Delayed Quote.-0.98%
03/26CAPSTONE MINING  : to Advance Cobalt Project at Santo Domingo to Feasibility, Op..
03/26Capstone Announces Gold Stream with Wheaton Precious Metals, Enters into a Bi..
03/25UPDATE : Capstone Down 1.8% After Detailing Gold Stream with Wheaton Precious Me..
03/25WHEATON PRECIOUS METALS  : to Acquire Gold Stream From Capstone's Chile Project
03/25Wheaton Precious Metals Signs $290 Million Gold Purchase Agreement With Capst..
03/25Wheaton Precious Metals Corp. Acquisition of -2-
03/25NEIL BURNS : Wheaton Precious Metals Corp. Acquisition of Stream from Santo Domi..
03/25Capstone Mining Details Gold Stream with Wheaton Precious Metals; Enters into..
03/25CAPSTONE MINING  : to Advance Cobalt Project at Santo Domingo to Feasibility; Op..
03/25CAPSTONE MINING BRIEF : Details Gold Stream with Wheaton Precious Metals; Enters..
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Financials (USD)
Sales 2021 617 M - -
Net income 2021 124 M - -
Net cash 2021 76,5 M - -
P/E ratio 2021 9,59x
Yield 2021 -
Capitalization 1 435 M 1 432 M -
EV / Sales 2021 2,20x
EV / Sales 2022 2,11x
Nbr of Employees 1 049
Free-Float 65,9%
Duration : Period :
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Technical analysis trends CAPSTONE MINING CORP.
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Mean consensus BUY
Number of Analysts 10
Average target price 3,95 $
Last Close Price 3,50 $
Spread / Highest target 28,2%
Spread / Average Target 12,8%
Spread / Lowest Target -3,80%
EPS Revisions
Managers and Directors
Darren Murvin Pylot President, Chief Executive Officer & Director
Raman Randhawa Chief Financial Officer
George Leslie Brack Non-Executive Chairman
Brad J. Mercer Chief Operating Officer & Senior Vice President
Dale Canfield Peniuk Independent Director
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