Capstone Mining Corp. (CS) - Financial and Strategic SWOT Analysis Review

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Capstone Mining Corp. (CS) - Financial and Strategic SWOT Analysis Review
Capstone Mining Corp. (CS) - Financial and Strategic SWOT Analysis

Review

Reference Code: GDMM165189FSA Publication Date: MAY 2012



Suite 900, 999 West Hastings Street Phone +1 604 6848894 Revenue 327.8 (million USD)

Vancouver, BC Fax +1 604 6882180 Net Profit 60.69 (million USD)

V6C 2W2 Website www.capstonemining.com Employees 596

CS [Toronto Stock

Canada Exchange Industry Metals and Mining

Exchange]



Company Overview

Capstone Mining Corp (Capstone) is a Canada-based mining company. It is involved in the exploration and production of

strategic metals in Canada and Mexico. The company’s key subsidiaries include Minto Explorations Ltd, Capstone Gold, S.A. de

C.V, Minera Santo Domingo SCM, a 70% owned Chilean subsidiary, Far West Mining Pty Ltd., a 70% owned Australian

subsidiary, and Kutcho Copper Corp. Through these subsidiaries, it focused in the production of copper and its by-products, such

as, gold, silver, zinc and lead.

Key Executives SWOT Analysis

Name Title Capstone Mining Corp., SWOT Analysis

Darren M. Pylot Chief Executive Officer Strengths Weaknesses

George L. Brack Chairman

Operational Project Portfolio Increasing Operating Costs

Lawrence I. Bell Director affecting Margins

Development Stage Projects

Chantal Gosselin Director

Dale C. Peniuk Director

Source: Annual Report, Company Website, Primary and Secondary

Opportunities Threats

Research, GlobalData

Demand Prospects: Copper Competitive Landscape

Share Data

Acquisition of Far West Mining Fluctuations in Commodity

Capstone Mining Corp.

Prices

Share Price (USD) as on 10- 2.58

May-2012

Source: Annual Report, Company Website, Primary and Secondary Research,

EPS (USD) 0.20 GlobalData

Market Cap (million USD) 976

Enterprise Value (million USD) 983

Shares Outstanding (million) 379

Source: Annual Report, Company Website, Primary and Secondary

Research, GlobalData



Financial Performance Recent Developments

Apr 12, 2012 Capstone Enters Into New $200m Corporate

Credit Facility

Feb 10, 2012 Capstone Director Jan Castro Resigns

Feb 09, 2012 Fjordland And Capstone Plan Exploration

Program At Tak Project In British Columbia

Feb 02, 2012 Capstone Completes Another Drill Season At

Minto Mine In Yukon

Source: Annual Report, Company Website, Primary and Secondary Research,

GlobalData



Source: Annual Report, Company Website, Primary and Secondary

Research, GlobalData









Capstone Mining Corp. (CS) - Financial and Strategic SWOT Reference Code: GDMM165189FSA

Analysis Review

Source : www.globalcompanyintelligence.com Page 1

© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form

Table of Contents

Table of Contents ............................................................................................................................................................................... 2

List of Tables .................................................................................................................................................................................. 4

List of Figures ................................................................................................................................................................................. 4

Section 1 - About the Company.......................................................................................................................................................... 5

Capstone Mining Corp. - Key Facts .................................................................................................................................................... 5

Capstone Mining Corp. - Key Employees ........................................................................................................................................... 6

Capstone Mining Corp. - Key Employee Biographies ......................................................................................................................... 7

Capstone Mining Corp. - Major Products and Services ...................................................................................................................... 8

Capstone Mining Corp. - History ........................................................................................................................................................ 9

Capstone Mining Corp. - Company Statement ................................................................................................................................. 10

Capstone Mining Corp. - Locations And Subsidiaries ...................................................................................................................... 12

Head Office ................................................................................................................................................................................... 12

Other Locations & Subsidiaries ..................................................................................................................................................... 12

Section 2 – Company Analysis ......................................................................................................................................................... 14

Capstone Mining Corp. - Business Description ................................................................................................................................ 14

Capstone Mining Corp. - SWOT Analysis......................................................................................................................................... 15

SWOT Analysis - Overview........................................................................................................................................................... 15

Capstone Mining Corp. - Strengths ............................................................................................................................................... 15

Strength - Operational Project Portfolio ..................................................................................................................................... 15

Strength - Development Stage Projects .................................................................................................................................... 15

Strength - Strong Liquidity Position ........................................................................................................................................... 15

Capstone Mining Corp. - Weaknesses.......................................................................................................................................... 15

Weakness - Increasing Operating Costs affecting Margins ....................................................................................................... 15

Capstone Mining Corp. - Opportunities ......................................................................................................................................... 16

Opportunity - Demand Prospects: Copper ................................................................................................................................ 16

Opportunity - Acquisition of Far West Mining ............................................................................................................................ 16

Opportunity - Positive Mineral Resource Estimate: Footwall Zone............................................................................................ 16

Capstone Mining Corp. - Threats .................................................................................................................................................. 16

Threat - Competitive Landscape ............................................................................................................................................... 16

Threat - Fluctuations in Commodity Prices................................................................................................................................ 17

Threat - Operational Risks ........................................................................................................................................................ 17

Capstone Mining Corp. - Key Competitors ....................................................................................................................................... 18

Section 3 – Company Financial Ratios ............................................................................................................................................. 19

Financial Ratios - Capital Market Ratios........................................................................................................................................... 19

Financial Ratios - Annual Ratios ...................................................................................................................................................... 19

Performance Chart ........................................................................................................................................................................... 21

Financial Performance...................................................................................................................................................................... 21

Financial Ratios - Interim Ratios....................................................................................................................................................... 22

Financial Ratios - Ratio Charts ......................................................................................................................................................... 23

Capstone Mining Corp., Recent Deals Summary ............................................................................................................................. 24

Section 4 – Company’s Recent Developments ................................................................................................................................ 25

Capstone Mining Corp., Recent Developments ............................................................................................................................ 25

Apr 12, 2012: Capstone Enters Into New $200m Corporate Credit Facility............................................................................... 25

Feb 10, 2012: Capstone Director Jan Castro Resigns .............................................................................................................. 25

Feb 09, 2012: Fjordland And Capstone Plan Exploration Program At Tak Project In British Columbia .................................... 25





Capstone Mining Corp. (CS) - Financial and Strategic SWOT Reference Code: GDMM165189FSA

Analysis Review

Source : www.globalcompanyintelligence.com Page 2

© GlobalData. This report is a licensed product and is not to be copied, reproduced, shared or resold in any form

Feb 02, 2012: Capstone Completes Another Drill Season At Minto Mine In Yukon .................................................................. 25

Jan 16, 2012: Capstone Awards Contract For Santo Domingo Feasibility Study ...................................................................... 26

Oct 06, 2011: Capstone Provides Q3 2011 Production Results ................................................................................................ 27

Jul 06, 2011: Capstone Announces Q2 2011 Production Results ............................................................................................. 27

May 02, 2011: Capstone Provides Assay Results For First 19 Drill Holes From Copper Keel Deposit ..................................... 28

Section 5 – Appendix ....................................................................................................................................................................... 30

Methodology ................................................................................................................................................................................. 30

Ratio Definitions ..................................................................................................................................................

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