Capstone Copper (CS.TO): Limited EBITDA Impact from Higher Acid Prices/SX-EW Production Slowdown

Research evidence excerpt

Capstone Copper (CS.TO): Limited EBITDA Impact from Higher Acid Prices/SX-EW Production Slowdown

Equity Research

26 June 2026 | 1:43AM BRT

Capstone Copper (CS.TO): Limited EBITDA Impact from Higher Acid

Prices/SX-EW Production Slowdown

Bloomberg news has recently reported a scale back in Capstone’s Mantoverde Marcio Farid

+55(11)3371-4580 |

SX-EW operations in Chile, used to process oxide ores into copper cathodes. marcio.farid@gs.com

Goldman Sachs do Brasil CTVM S.A.

During the 1Q26 conference call (April 29th), management commented on costs Emerson Vieira

+55(11)3372-0256 |

pressures due to the rise in sulfuric acid prices (e.g. $400-$430/t CFR Chile at the emerson.vieira@gs.com

time vs $185/t implied in the guidance and ~$500/t at spot) since the onset of the

Henrique MarquesMiddle East conflict and that they could either wind down or reduce cathode +55(11)3371-0778 |

production levels if it starts burning cash. henrique.marques@gs.comGoldman Sachs do Brasil CTVM S.A.

While acid supply remains available (sourcing from local smelters in Chile and Peru),

Mantoverde’s cathode business is a high cost operation at $4.8/lb vs $2.6/lb

consolidated for YE26 mid-range guidance, so we expect the company has materially

reduced cathode production at this point.

We have modeled Mantoverde’s oxide heap-leaching operation at 1.8kt monthly

production and estimate the business would be running at a negative EBITDA of

$7mn/month at $500/t acid price (CS is exposed to variable pricing starting in 3Q26)

and copper spot price ($13,300/t).

At implied acid prices on the company’s guidance ($185/t), we estimate

Mantoverde’s heap-leaching EBITDA at $5mn/month. So even in a severe production

cut, EBITDA loss would represent less than ~3% of 2026E Consensus EBITDA.