05:41 PM EDT, 10/01/2024 (MT Newswires) -- Capstone Copper ( CSCCF ) after trade Tuesday said its Mantoverde Development Project (MVDP) in Chile reached commercial production and outlined its leadership succession plan.

It also announced the results of a feasibility study for its Mantoverde Optimized brownfield expansion project.

Capstone said it achieved commercial production at MVDP on Sept.21

"Strong performance on key metrics, such as concentrate grade and recoveries, were at or above targeted levels for this point of the ramp-up while the mill feed grade has reconciled well with the mine plan model." the company said.

Capstone said 2024 consolidated copper production is trending to the low end of the guidance range of 190,000 to 220,000 tonnes of copper, while C1 cash costs are trending slightly above the guidance range of US$2.30 to US$2.50 per payable pound, mainly due to the ramp-ups at Mantoverde and Mantos Blancos occurring later in the year than was expected when guidance was issued in January 2024. However it noted with the ramp-up at MVDP and the recent performance at Mantos Blancos, it expects the fourth quarter to be the strongest quarter of the year across the portfolio

The company said chief executive John MacKenzie will transition to the role of Non-Executive Chair at the company's May 2 annual meeting. Cashel Meagher, now Chief Operating Officer, will succeed MacKenzie as CEO of Capstone, and will also be nominated as a member of the board.

James Whittaker, currently Senior Vice President and Head of Chile, will succeed Meagher as COO. "This facilitates a flattening of the organizational structure with all mine general managers reporting directly to the COO," the company said.

Meanwhile, Darren Pylot, founder of Capstone and current board chair, will leave the board after over 20 years as a founder, CEO, and Chair.

On the MVPD Optimized Feasibility Study, CEO John MacKenzie said when combined with the recently released Santo Domingo Feasibility Study, it defines the next phase of transformational growth for the company.

According to MacKenzie, MV Optimized is a "capital efficient, high return and low risk expansion project" that is expected to bring on an additional 20,000 tonnes per annum of copper for approximately $146 million of capital.

Capstone shares closed up $0.18 to $10.75 on the Toronto Stock Exchange.