S&P/ASX 200 Index
(ASX: XJO)
copper
stock
Capstone Copper Corp
(
ASX: CSC
) is slipping today.
Given that investors are probably watching today’s
resurgence of the Trump tariffs
During the Friday lunch break, Capstone Copper shares have dropped by 1.5%, now trading at $8.56 per share.
This shows a decline of 22.5% in the stock price of Capstone Copper within a span of one year. The company faces several challenges, including a drop in copper prices which have fallen from $US10,457 per tonne last year to $US9,568 per tonne currently, resulting in an 8.5% decrease.
Even though those who purchased the copper shares at the recent close of 9 April will currently have realized a gain of 38.8%.
It might still be possible for this rising copper miner stock to go up further.
If the analysts at
Macquarie Group Ltd
(
ASX: MQG
) get it right, those purchasing shares of an ASX 200 copper company at current prices might experience substantial increases in value over the coming year.
Here’s why.
The ASX 200 copper share predicted to perform well.
In a research report released on Thursday about Australian copper miners, Macquarie stated that they consider Capstone Copper as their top choice for investing in copper.
Regarding the future prospects of the ASX 200 copper stocks, analysts from Macquarie commented as follows:
One key driver for CSC is the anticipated approval of the DIA permit amendment for Mantoverde Optimized (MV-O), expected around mid-CY25 (approximately within the next two months). This approval would enable an increased processing capacity from 32ktdp to 45ktdp.
We see it as a good sign that CSC is presently intending to purchase US$60 million worth of long-lead components (from an overall capex budget of US$146 million) in preparation for obtaining the necessary approvals.
Macquarie is addressing Capstone Copper’s request to modify its current Environmental Impact Statement for the Mantoverde copper mine, which is situated in Chile.
If granted approval to alter its license, Capstone could boost its mill output from 32,000 to 45,000 tonnes daily “by utilizing current resources rather than through major investments in new gear,” as stated by Capstone.
The ASX 200 copper company also mentioned that this change would extend the mine’s operational lifespan from 19 to 25 years.
Regarding its latest update, when Capstone Copper published its March quarterly figures at the beginning of this month, CEO John MacKenzie stated, “We had a strong commencement to the year with our operations kicking off impressively in Q1. This was highlighted by all-time high sulphide copper output from both Mantoverde and Mantos Blancos locations, leading us to achieve unprecedented levels of revenue and EBITDA.”
Including the details, Macquarie kept their outperform rating for the ASX 200 copper company, setting a $11.60 per share target price over twelve months. This projection suggests an upside potential of 35.5% based on the present Capstone Copper share value.
The post
Why Macquarie anticipates this ASX 200 copper share to rise by 36% within a year
appeared first on
The Motley Fool Australia
.
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Motley Fool
contributor
Bernd Struben
does not hold any shares in the companies mentioned above. However, Motley Fool Australia’s parent company, Motley Fool Holdings Inc., owns shares in and recommends Macquarie Group. Additionally, The Motley Fool Australia also holds an interest in and endorses Macquarie Group. Furthermore, The Motley Fool discloses:
disclosure policy
This article includes solely general investment guidance (covered under AFSL 400691). Authorized by Scott Phillips.
