May 12, 2010 / 9:26 PM / 8 years ago

UPDATE 1-Capstone Mining Q1 profit trails street

* Q1 EPS $0.11 vs est $0.13

* Gross sales rev up 39 percent

May 12 (Reuters) - Capstone Mining Corp’s (CS.TO) first-quarter profit trailed estimates, hurt by production constraints at one of its mines, and the copper producer expressed caution on its ability to reach its 2010 production outlook.

“During the quarter, the Minto mine experienced throughput constraints, initially due to crusher limitations and, subsequently, due to the tailings plant,” the company said in a statement.

Net earnings was $13.5 million, or 7 cents a share, compared with a net loss of $16.2 million, or 10 cents a share, a year ago.

Excluding non-cash and one-time items, the company earned 11 cents a share.

Gross sales revenue rose 39 percent to $88 million.

Analysts on average were expecting the company to earn 13 cents a share, according to Thomson Reuters I/B/E/S.

Last December, Capstone said it expects 2010 production to be between 90 and 100 million pounds of copper in concentrates at an estimated total cash cost of $1.10 to $1.20 per pound of payable copper, net of by-product credits.

“Capstone believes it is appropriate to express some caution as to its ability to reach its guidance range unless production exceeds nominal capacity for the balance of the year,” the company said.

Shares of Capstone closed at C$2.81 Wednesday on the Toronto Stock Exchange. (Reporting by Aftab Ahmed in Bangalore; Editing by Jarshad Kakkrakandy) (; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging:

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