When the copper prices fall, it is obvious for investors to become skimmed. That is exactly what happened this year, and Keystone copper (TSX: CS) has taken a hit. The copper shares have fallen more than 27% since the High in April, which not only reflects the weakness in the raw material, but also the nervousness of investors about growing plans and geopolitics risk.
But is the sale exaggerated? Or are there more losses for the bow? Let’s take a closer look at the latest results and prospects of Capstone to answer the big question for July 2025: Do you have to buy, sell or hold?
About Capstone
Capstone is a copper miner with operations in Chile, Arizona and Mexico. The most important draw for investors is the Santo Domingo project in Chile, which it has in addition to the government through a partnership with Enami. This enormous mine should stimulate years of future growth, but that is also where part of the current uncertainty is.
In the profit of the first quarter of 2025, Capstone reported record income of $ 533 million, an increase of $ 340 million a year earlier. The increase was largely due to higher copper prices and some operational headwind in its cozamin mine in Mexico. Adapted income before interest, taxes, depreciation and amortization (EBITDA) came to $ 180 million, almost double the year before. The copper stock again confirmed its production guidance throughout the year and pointed to steady progress on Santo Domingo, who is on its way for the first production in 2027.
What to view
So what does this all mean for investors? On the one hand, Capstone is clearly in investment mode. It spends a lot to build future production and to modernize its activities. That is positive in the long term, but it also means that the cash flow is under pressure in the short term. The capital expenditure should reach $ 315 million this year, much of it goes to the Chilean project. This has dropped the net debt of the company year after year to $ 788 million, although it is higher than in the last quarter.
Nevertheless, management remains convinced that the investment will bear fruit. CEO John Mackenzie emphasized in the latest profit call that the buyer remains strong and that keystone should benefit. That trust is reflected by analysts, some of whom still see the shares as undervalued on the basis of the long-term copy question due to electrification and energy infrastructure. And at the moment, with copper prices for US $ 4.50 per pound, it seems that those beliefs come true.
Consideration
What makes this difficult is timing. If you are looking for the short -term profit, Capstone can frustrate. The income is closely linked to copper prices, and at the moment the macro image is cloudy. But if you are a long -term investor who is willing to drive some volatility, there is a case that this is a handle, or even a purchase of weakness.
At the current prices, the Capstone acts about 1.5 times book value and 25.77 times for income. That is a steep discount compared to where it was traded a year ago, and it does not fully reflect the potential of Santo Domingo or the rebound in buyer who expect many by 2026. However, that rebound is not guaranteed, and any delay to the project timeline or persistent price weakness could send the shares lower.
Bottom Line
If you already have shares, it is probably logical. The copper shares are not in financial problems and the long -term statement is intact, although the patience can cost. If you are considering buying, you want to feel familiar with volatility and have a longer investment horizon. Capstone is not a safe haven. It is a bet on future copper prices and the ability to bring Santo Domingo smoothly online.
For short -term traders, the recent dip may not be deep enough to justify a purchase. But for long -term investors who are looking for copper exposure with growth, Capstone can be one of the better options on the TSX. Just be prepared for a few bumps on the road.
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