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Jennings Capital Initiates Coverage on Capstone Mining Corp. (TSX: CS)

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Investment firm Jennings Capital has initiated coverage on Capstone Mining Corp., which trades on the Toronto Stock Exchange under the symbol “CS”. Capstone’s stable of 2 producing copper mines offers investors exposure to the copper prices in a conservative manner.

Additional Information:

Company: Capstone Mining Corp.
Website: http://capstonemining.com/s/Home.asp
Stock Symbol: TSX: CS
Transcript: Available

Video Transcript:

I’m Megan Edwards for InvestmentPitch.com

Investment firm Jennings Capital has initiated coverage on Capstone Mining Corp., which trades on the Toronto Stock Exchange under the symbol “CS”.

Analyst Garnet Salmon gives the company a buy recommendation and a 12-month target price of $3.40 per share, a 45% premium to the current price of $2.34.

Capstone’s stable of 2 producing copper mines offers investors exposure to the copper prices in a conservative manner: consistent production at reasonable and steady cash costs in safe jurisdictions, namely Mexico and Yukon.

The company has been a consistent copper producer with a relatively steady cash cost over the past 5 years, averaging $1.35 per pound.

In addition, the company has two development projects, the large scale 70%-owned Santo Domingo copper-iron-gold project in Chile, in partnership with Korea Resources Corporation, and the 100%-owned Kutcho copper-zinc-gold-silver project in British Columbia, as well as other exploration properties.

Salmon stated, “We believe that in a volatile copper price environment Capstone offers investors a solid defensive way to play the copper price, with a 5-year historical 83% correlation to copper prices.”

He further stated, “We believe Capstone is well-positioned to become a major consolidator of intermediate copper mines in the near-term, to add significant growth to its production profile.”

The company has built a cash stockpile of approximately $500 million, representing slightly more than 50% of its current share price.

The company also has initiated a share buy-back program, representing 10% of the public float of 34 million shares, with approximately 1.5 million shares already taken up.

Capstone trades at $2.34 and with 380 million shares outstanding the company is capitalized at $889 million.

For more information please visit the company’s website www.capstonemining.com, or call Cindy Burnett
VP, Investor Relations and Communications at 1-866-684-8894 or email cburnett@capstonemining.com.

For more information about Jennings Capital or to obtain a copy of their research report, contact your nearest Jennings Capital office. Their branches are listed on their website at www.jenningscapital.com.

I’m Megan Edwards for InvestmentPitch.com
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This video is for information purposes only and it is not a recommendation to buy or sell any securities.