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Capstone Mining Announces 2017 Copper Price Protection
Nov. 10, 2016 09:39AM PST
Base Metals Investing Capstone Mining (TSX:CS) has entered into zero-cost collars for 43,000 tonnes of copper with settlements between January and December 2017 at a minimum of US$5,025 and a maximum of US$5,585 per tonne of copper. As quoted in the press release: There was no cost to Capstone to put this protection in place. “Capstone’s strategy over …
Capstone Mining (TSX:CS) has entered into zero-cost collars for 43,000 tonnes of copper with settlements between January and December 2017 at a minimum of US$5,025 and a maximum of US$5,585 per tonne of copper.
As quoted in the press release:
There was no cost to Capstone to put this protection in place.
“Capstone’s strategy over the long term is to remain unhedged on our copper production,” said Darren Pylot, President and CEO of Capstone. “However, we determined our most prudent course of action was to opportunistically protect our business from near term downside risk. Our actions ensure we can continue to reduce debt in 2017, while retaining meaningful exposure to copper prices, particularly in the second half of 2017 and beyond.”
In addition, in the fourth quarter of 2016 we have sold forward 30,000 tonnes of copper at $4,900 per tonne of copper for the period December 2016 to June 2017.