July 15, 2009 / 12:51 PM / in 8 years

UPDATE 1-Capstone Mining says will meet 2009 production outlook

* Six-month production of 49.2 mln pounds of copper

* Sees Q3 to be below average production

* Sees Q4 to be above average production

* Genuity cuts Capstone to “hold”

July 15 (Reuters) - Capstone Mining Corp (CS.TO) said it expects to meet its full-year production forecast as production for the first six months from two of its mines was within its previously reported outlook for the year.

For the first six months ended June 30, the Canadian company reported total production of 49.2 million pounds of copper in concentrates, at an average cost of 93 cents per pound of payable copper, from its Cozamin Mexico-based mine and Minto Canada-based mine.

In May, the company had forecast 2009 production of 95 million to 105 million pounds of copper in concentrates at a total cash cost of $1 per pound.

Vancouver-based Capstone said it expects production to be below average in the third quarter but above average in the fourth quarter.

Separately, Genuity Capital Markets downgraded Capstone’s stock to “hold” from “buy,” while raising its price target on the stock by 30 Canadian cents to C$3.

“While we continue to like the Capstone story for its growth and exploration potential, the shares appear fairly valued at the current price level,” analyst Nawojka Wachowiak wrote in a note to clients.

Shares of the company closed at C$2.90 Tuesday on the Toronto Stock Exchange. (Reporting by Isheeta Sanghi in Bangalore; Editing by Maju Samuel) ((isheeta.sanghi@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: isheeta.sanghi.thomsonreuters.com@reuters.net))

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