ASX copper stock Capstone Copper Corp (ASX: CSC) is marching higher today.
Shares in the dual-listed Canadian-based S&P/ASX 300 Index (ASX: XKO) copper miner, which joined the ASX on 8 April, closed yesterday trading for $10.58. In morning trade on Thursday, shares are changing hands for $10.77 apiece, up 1.8%.
For some context, the ASX 300 is up 0.2% at this same time.
As you can see on the chart above, this puts the Capstone Copper share price up 9.3% since it began trading on the Aussie exchange.
And according to the analysts at Citi, the ASX copper stock could charge far higher from here as we head into 2025.
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ASX copper stock forecast to outperform
Commenting on Citi's positive outlook for Capstone Copper, analyst Kate McCutcheon said (quoted by The Australian Financial Review), "We see positive earnings momentum on execution of growth projects and upward revisions to copper prices."
The broker commenced coverage on the ASX copper stock with a buy rating and a share price target of $13.60. That's 26.3% above the current Capstone Copper share price.
Part of Citi's bullish outlook stems from its forecast US$10,000 per tonne copper price.
The red metal is currently trading for US$9,217 per tonne, having kicked off 2024 at US$8,545 per tonne. Copper prices reached highs above US$10,890 per tonne on 21 May.
With Citi expecting global demand for the red metal to remain robust amid the world's ongoing push to low-carbon energy sources, the broker forecasts prices will rebound in 2025.
And Capstone could be well-placed to take advantage.
McCutcheon said that relative to other ASX copper stocks, the miner's growth ambitions of 400,000 tonnes per year is "a standout". She highlighted the importance for Capstone to deliver on its guidance under its incoming CEO.
What's been happening with Capstone Copper?
Capstone reported its September quarterly results on 31 October.
The ASX copper stock achieved copper production of 47,460 tonnes at cash costs of $2.83 per pound for the three months.
Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $120.8 million for Q3 2024, up from $62.8 million for Q3 2023. The 92% year on year earnings boost was driven by higher copper production and a higher realised copper price.
Commenting on the improved results delivered by the ASX copper stock, CEO John MacKenzie said:
The third quarter marked an important step in the transformation of our business, with tangible delivery on our peer leading growth. Our operations in Chile exhibited meaningful milestones…
We expect Q4 to be our strongest quarter of the year, providing a glimpse of the future Capstone with a larger production base and lower unit operating costs.
