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Capstone second quarter net earnings fall to US$15.5M from $44.7M

VANCOUVER – Capstone Mining Corp. (TSX: CS), a Vancouver-based copper producer, reports its net earnings in the second quarter were cut by nearly two thirds, but the company generated higher revenues.

Capstone said late Monday it earned US$15.5 million or seven cents a share for the three months ended June 30. That was down from net profits of $44.7 million or 23 cents a year earlier.

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Sales revenue rose to $78.9 million from $69.2 million.

Capstone has two producing copper mines – the Cozamin copper-silver-zinc-lead mine in Mexico and the Minto copper-gold-silver mine in Yukon in Northern Canada.

“Earnings from mining operations were slightly higher than the same periods a year ago as a result of continuing strong metal prices, partially offset by higher depletion and amortization at Minto where we continue to process our ore stock piles related to the previously mined Minto Main pit,” said Darren Pylot, Capstone’s president and CEO.

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“Net earnings were lower however, as 2010 included gains on unrealized derivative instruments and realized gains on the disposal of investments, which were significantly lower in 2011.”

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