CAP (CAP) Q1 2025 earnings summary

Executive summary

• Net loss narrowed to $13.3 million in Q1 2025 from $38.5 million in Q1 2024, mainly due to improved industrial segment results and suspension of steel operations at Huachipato.

• Revenue reached $432.2 million, up 8% year-over-year, with mining as the main contributor.

• Comprehensive loss totaled $5.9 million, reflecting improved operating results and positive exchange differences.

• Company acquired 49% of stock from Mitsubishi and Aguas CAP, now holding 100% ownership, financed via blue-certified loans.

• Strategic transformation underway, including new synergies, operational focus, and rare earth investments.

Financial highlights

• Mining segment EBITDA fell 7.9% year-over-year due to a 12.9% drop in realized prices and 18.3% lower shipments, mainly from Los Colorados contingency.

• Industrial segment EBITDA improved, led by Cintac and modular segments, while TASA faced margin pressure from lower steel prices.

• Infrastructure segment EBITDA stable at $14.1 million; net income up 54% due to non-operational income at Puerto Las Losas.

• Cash and cash equivalents increased to $459 million as of March 2025, with defensive financial planning ongoing.

• Gross financial debt increased to $1.87 billion, mainly due to acquisitions and CMP investments.

Outlook and guidance

• Focus on resolving Los Colorados mine contingency and restoring iron ore production.

• Management expects continued improvement in operational efficiency and cost control.

• Environmental and climate initiatives remain a strategic priority, with a 31% GHG reduction target by 2030.

• Mining and construction investment expected to increase by at least 15%.

• CapEx guidance unchanged, with focus on long-term sustainability.