NEW YORK Capstone Mining
Corp. is mulling potential acquisitions, president and chief
executive officer Darren Pylot said as the copper
producers earnings held mostly steady in 2012.
"The ability to deploy our
balance sheet on opportunistic acquisitions provides Capstone
with the flexibility to grow our short-term production profile
and advance the company to the next level," he said in a
The Vancouver, British
Columbia-based company will consider companies with production
of 50 million to 125 million pounds, with a cost ranging from
$100 million to $600 million, Pylot told analysts during an
With $500 million in cash plus a
$200-million credit facility, Capstone could make an
acquisition in this range without adding significant leverage,
Capstone reported full-year 2012
net income of $59.6 million, down 1.4 percent from $60.4
million a year earlier, on revenue that fell 6.8 percent to
$305.5 million from $327.8 million.
However, copper concentrate
production rose to 82.8 million pounds for the year from 78.3
million pounds in 2011.
Meanwhile, fourth-quarter net
income nearly quadrupled to $18.5 million from $4.9 million in
the same three month span a year earlier on revenue that
increased 17.9 percent to $72.5 million from $61.5 million.
Copper concentrate production
dipped to 19.7 million pounds from 19.8 million pounds in the
"We had another solid year in
2012," Pylot said in a statement. "Our revenue, earnings and
cash flow remained strong, and we exceeded production and cost
guidance for the year. Both operating mines are well-positioned
to deliver on their targets in 2013."
In addition to pushing ahead
with development projects in Kutcho, British Columbia, and
Santa Domingo, Chile, the company has begun initial drilling
campaigns at greenfield projects in Chile and Mexico.
"We plan to advance our
development projects in 2013 by formally entering the
permitting process at Kutcho and completing key milestones at
Santo Domingo, including submitting the environmental impact
study and completing the feasibility study," Pylot said. "We
will also continue activities on our greenfield exploration
portfolio, with initial drilling campaigns at projects in Chile