VANCOUVER – Capstone Copper Corp. has entered into an arrangement to sell 43,000 tonnes of copper next year with settlements between US$5,025 and US$5,585 per tonne of metal, or US$2.28 and US$2.53 per lb. There is no cost to the company for this protection.
In the fourth quarter of this year, Capstone sold forward 30,000 tonnes of copper at US$4,900 per tonne for delivery during the period December 2016 to June 2017.
“Capstone’s strategy over the long term is to remain unhedged on our copper production,” said president and CEO Darren Pylot. “However, we determined our most prudent course of action was to opportunistically protect our business from near term downside risk. Our actions ensure we can continue to reduce debt in 2017, while retaining meaningful exposure to copper prices, particularly in the second half of 2017 and beyond.”
Capstone operates the Minto mine in Yukon, Pinto Valley in Arizona and Cozamin in Mexico. It also has two developments under way, Kutcho in British Columbia and Santo Domingo in Chile.
Please see www.CapstoneMining.com for more information.