PM Capital Australian Companies Fund on Capstone Copper Corp.
Thesis
PM Capital had increased its Capstone position after the shares fell sharply amid weaker copper prices and labour disruption at the Mantoverde mine. During Q2, copper rebounded and the labour issues were resolved, allowing Mantoverde operations to return to normal. The share price recovered strongly, and the fund trimmed the position late in the quarter rather than exiting it. The remaining case rests on normalized operations and exposure to supportive copper fundamentals.
“Importantly, labour issues at Mantoverde have also been resolved and operations have returned to normal.”
Key risks
- Copper price volatility
- Operational or labour disruption at the Mantoverde mine