Capstone Copper experienced a downturn on the S&P/ASX 200, declining almost 6 per cent, despite largely meeting expectations in its fourth-quarter results. According to Morgans Research analyst Annabelle Sleeman, the results contained few surprises, particularly after the company had already released production figures and provided guidance for 2026. Capstone Copper is focused on copper mining and is developing projects across the Americas. The company aims to grow production while maintaining commitment to environmental and social responsibility.
Sleeman noted that while earnings were slightly below Morgans’ forecasts due to adjustments to previously released figures, they were broadly in line with consensus expectations. A key factor in Morgans’ positive outlook is Capstone’s ongoing growth in Chile, with the Mantoverde Optimised tie-ins anticipated in the third quarter of 2026. The company is also in the early stages of evaluating a Phase II expansion of the Mantoverde project.
Despite the day’s market performance, Morgans Research maintains a positive outlook on Capstone Copper. Sleeman stated that Capstone Copper remains their preferred ASX copper exposure. This preference is based on the company’s valuation, trading at approximately 5.5 times its calendar year 2026 enterprise value to earnings before interest, taxes, depreciation, and amortisation (EV/EBITDA).
According to Sleeman, the current valuation effectively prices in a copper price of around US$4.20 per pound in perpetuity. This valuation suggests that the market may be undervaluing Capstone Copper’s long-term growth potential, particularly given its ongoing developments in Chile and its position within the copper market.
