July 19, 2010 / 1:32 PM / 7 years ago

UPDATE 2-Capstone shares fall on lower production view

* Cuts FY 2010 production view 13 pct to 80-85 mln pounds

* Cuts FY Minto mine view to 40-43 mln pounds

* Cuts FY Cozamin mine view to 40-42 mln pounds

* Q2 production falls 23 percent

* Sees constant production rate for rest of the year

* Shares down 8 pct

(Recasts; adds details, updates share movement)

July 19 (Reuters) - Copper miner Capstone Mining Corp (CS.TO) cut its full year production outlook by 13 percent, due to production constraints and interruptions at its two mines, sending its shares down 8 percent.

The company’s Minto mine in Yukon and its Cozamin mine in Mexico were hit by production constraints due to crusher limitations and worn filter parts as well as issues like a wildfire and a fatality in the quarter. Last month, production was halted for a week at Minto mine, which accounted for about 70 percent of last year’s production, due to a wildfire. In April, a miner was killed at its Cozamin mine, which was then closed for three days.

The company now expects a total of 80 million to 85 million pounds of copper in concentrates in 2010, with an equal contribution from both the mines, down from about 90 million pounds produced in 2009.

Total production fell 23 percent to 17.9 million pounds in the second quarter, Capstone said in a statement.

The miner said that production is expected to remain constant for the rest of the year, as higher throughput would be offset by declining grades of stockpiled material.

The miner reiterated total cash costs outlook of $1.10 to $1.20 per pound of payable copper for the year.

Shares of the Vancouver, British Columbia-based company touched a low of C$2.15, before paring some losses to trade at C$2.24 Monday on the Toronto Stock Exchange. (Reporting by Gowri Jayakumar in Bangalore; Editing by Jarshad Kakkrakandy and Savio D‘Souza)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below