CIBC Says Capstone Mining’s Santo Domingo Project Discounted Too Much
Friday, December 09, 2021 2:30 PM

CIBC World Markets Inc. said it believes Capstone Mining Corp. (CS.TO)’s further development of Santo Domingo, the Mala Noche Footwall zone at Cozamin, and the Minto Underground development to be great catalysts


Capstone is a Canadian mining company with two producing copper mines, the Cozamin copper-silver-zinc-lead mine located in Zacatecas State, Mexico and the Minto copper-gold-silver mine in Yukon, Canada. In addition, Capstone has two development projects, the large scale 70 percent owned Santo Domingo copper-iron-gold project in Chile in partnership with Korea Resources Corporation and the 100 percent owned Kutcho copper-zinc-gold-silver project in British Columbia, as well as other exploration properties.


"Our recent visit to the Santo Domingo project as well as an operating magnetite recovery plant have given us greater comfort around the metallurgy that will be applied at the project," CIBC said in a note. "We are also confident that the infrastructure in place will ease the development of the mine."


"We have also gained greater confidence that access to port, road, power and water infrastructure is not as significant risk for this project as others currently in development," the brokerage said.


CIBC, which has a price target of $6.20 on the stock, cut 2011 EPS estimates to US$0.19 from US$0.24, while raising 2012 EPS estimates to US$0.28 from US$0.25. 


On Friday, CS.TO is up 3.40 percent at $3.04 on the Toronto Stock Exchange. The stock has been trading in the 52-week range between $1.97 and $4.99.