On Wednesday, BMO Capital Markets adjusted its outlook on Capstone Copper Corp (CS:CN) (OTC: CSFFF (OTC:CSFFF)), raising the price target to C$10.50 from the previous C$9.00. The firm maintained an Outperform rating on the stock. The adjustment follows recent positive developments in copper prices, which have been favorable for Capstone.
The analyst at BMO Capital Markets highlighted that Capstone is on schedule to produce its first saleable concentrate from the MVDP project in the second quarter of 2024. They also pointed out that the gold production accompanying the copper extraction could be an underappreciated aspect of Capstone's operations. The focus for the company is expected to remain on the MVDP's ramp-up process and achieving operational consistency.
The report further emphasized that Capstone's growth in production and margin expansion is anticipated to lead to an increase in EBITDA, stronger cash flow, and support the company's efforts to improve its balance sheet. The raised price target reflects the analyst's confidence in the company's future financial performance.
Capstone's anticipated production growth and operational focus are seen as key drivers for the company's improved financial metrics. The analyst's outlook suggests that these factors will contribute to Capstone's ability to manage and reduce debt.
The raised price target to C$10.50 from C$9.00 by BMO Capital Markets is based on the recent surge in copper prices and Capstone's strategic operations, which include the upcoming gold production. The firm's Outperform rating indicates a positive expectation for the stock's market performance.
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