02:34:04 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Copper Mountain Mining Corp
Symbol CUM
Shares Issued 118,795,427
Close 2016-04-29 C$ 0.60
Market Cap C$ 71,277,256
Recent Sedar Documents

Copper Mountain Mining earns $18.92-million in Q1 2016

2016-05-02 06:20 ET - News Release

Mr. Jim O'Rourke reports

COPPER MOUNTAIN MINING ANNOUNCES POSITIVE Q1 2016 RESULTS

Copper Mountain Mining Corp. had first quarter revenues of $58.7-million after pricing adjustments and treatment charges from the sale of 22.3 million pounds of copper-equivalent (including 18.1 million pounds of copper, 6,900 ounces of gold and 61,200 ounces of silver). Total cash cost for the quarter ended March 31, 2016, was $1.61 (U.S.) per pound of copper sold, net of precious metals credits.

Highlights (100-per-cent basis):

  • Copper, gold and silver production for the first quarter of 2016 at Copper Mountain mine was 23.8 million pounds of copper-equivalent, which includes 19.0 million pounds of copper, 7,600 ounces of gold and 64,700 ounces of silver.
  • Revenues for the first quarter of 2016 were $58.7-million from the sale of 18.1 million pounds of copper, 6,900 ounces of gold and 61,200 ounces of silver, net of pricing adjustments.
  • Gross profit for the quarter was $1.6-million.
  • Earnings before interest, taxes, depreciation and amortization were $34.4-million for the quarter, compared with a loss of $17.7-million in the same quarter for 2015.
  • A mining rate of 192,000 tonnes moved was achieved during the quarter, compared with 158,000 tonnes moved during 2015.
  • Mill throughput achieved a record of 39,980 tonnes per day in February and averaged 37,100 tpd during the quarter.
  • Site cash costs for the quarter were $1.16 (U.S.) per pound of copper produced net of precious metal credits.
  • Total cash costs for the quarter were in line with expectations at $1.61 (U.S.) per pound of copper sold net of precious metal credits and after all off-site charges, a reduction of 9 per cent over Q1 2015 total cash costs.
  • Realized prices on metal sales for Q1 2016 were $2.10 (U.S.) per pound of copper, $1,188 (U.S.) per ounce of gold and $14.89 (U.S.) per ounce of silver.

Jim O'Rourke, president and chief executive officer of Copper Mountain, remarked: "During the first quarter of 2016, Copper Mountain continued to demonstrate solid performance within a challenging commodities price environment by focusing on cost containment and production efficiencies. Total cash costs for the quarter decreased by 9 per cent to $1.61 (U.S.) per pound of copper sold net of precious metal credits and after all off-site charges over Q1 2015 total cash costs. Mine production was strong during the quarter with approximately 192,000 tonnes mined per day, well above our 2016 guidance of 174,000 tpd. Mill throughput for the quarter averaged 37,100 tpd, a 9-per-cent quarter-over-quarter increase, further demonstrating Copper Mountain's ability to operate above design capacity of 35,000 tpd on a sustained basis.

"At this time, I would like to acknowledge the dedication and efforts of our employees and suppliers for their commitments and co-operation in successfully tackling the challenges necessary to survive in the current copper price environment. We continue to focus on cost control and operational improvements to deal with the reality of the current global economic climate and are well positioned to benefit from higher metal prices in the future."

 
                            SUMMARY FINANCIAL RESULTS
                       (In thousands, except where noted)  
  
                                                   Three months ended March 31,
                                                          2016            2015

Revenues                                               $58,726         $71,457
Gross profit (loss)                                      1,564           6,750
Operating income (loss)                                   (450)          4,474
Adjusted earnings                                       (7,880)          4,312
Adjusted earnings per share                              (0.07)           0.04
EBITDA                                                  34,002         (17,676)
Adjusted EBITDA                                          7,194          18,439
Cash flow from operating activities before
working capital items                                   15,161          17,876
Cash and cash equivalents                                1,761          14,792
Accounts payable and accrued liabilities                30,519          40,608
Working capital                                        (13,946)         17,923
Equity                                                 195,348         248,686
Copper produced (000 lb)                                19,000          18,400
Gold produced (oz)                                       7,600           7,800
Silver produced (oz)                                    64,700          80,300
Copper sold (000 lb)                                    18,100          21,500
Gold sold (oz)                                           6,900           7,600
Silver sold (oz)                                        61,200          92,700
Site cash costs per pound of copper produced
(net of gold, silver credits) (US$)                       1.16            1.21
Total cash costs per pound of copper sold
(net of gold, silver credits) (US$)                       1.61            1.77
Realized copper price (US$)                               2.10            2.64

Copper Mountain mine

During the quarter, the company completed a total of three shipments of copper concentrate containing approximately 18.1 million pounds of copper, 6,900 ounces of gold and 61,200 ounces of silver which generated $58.7-million in revenue net of treatment and refining charges, and pricing adjustments. Site cash costs were $1.16 (U.S.) per pound of copper produced and total cash costs were $1.61 (U.S.) per pound sold, net of precious metal credits, for the three months ended March 31, 2016, compared with site cash costs of $1.21 (U.S.) per pound of copper produced and total cash costs of $1.77 (U.S.) per pound of copper sold, net of precious metal credits, for the three months ended March 31, 2015.

Mining activities were mainly focused in the pit No. 2 and Virginia pit areas for the first quarter of 2016. During the quarter a total of 17.4 million tonnes of material were mined, including 5.7 million tonnes of ore and 11.8 million tonnes of waste for a strip ratio of 2.07 to 1. During the quarter, the mine achieved a new daily mining record of 242,950 tpd, which was made possible by the opening up of short waste haul opportunities and a continued focus on maximizing haul truck hours. For the quarter the mine averaged 194,000 tonnes per day moved.

During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.312 per cent copper to produce 19 million pounds of copper, 7,600 ounces of gold and 64,600 ounces of silver. Mill recoveries were 82 per cent for the quarter. Mill operating time during the quarter averaged 91-per-cent operating time, with March operating time coming in at 93.5 per cent, compared with 93.2 per cent averaged during Q1 2015. The mill achieved an average throughput rate of 37,100 tpd during the quarter, as the company had some planned and unplanned downtime associated with the SAG mill discharge screen early in the quarter that reduced the quarter's average.

                         SUMMARIZED INCOME STATEMENT
                      (In thousands, except per share)
    
                                              Three months ended March 31,
                                                  2016               2015

Revenues                                       $58,726            $71,457
Cost of sales                                  (57,162)           (64,707)
                                               -------            -------
Gross profit                                     1,564              6,750
Other income and expenses
General and administration                      (1,780)            (1,951)
Share-based compensation                          (234)              (325)
                                               -------            -------
Operating income                                  (450)             4,474
Pricing adjustments on concentrate
and metal sales                                 (4,226)             1,881
Finance income                                      97                113
Finance expense                                 (3,131)            (2,510)
Current resource tax expense                      (170)              (365)
Deferred income and resource tax
recovery                                             -                720
                                               -------            -------
Adjusted earnings                               (7,880)             4,312
Pricing adjustments on concentrate
and metal sales                                  4,226             (1,881)
Unrealized gain (loss) on interest
rate swap                                       (2,566)            (1,991)
Unrealized gain (loss) on foreign
exchange                                        25,148            (32,244)
                                               -------            -------
Net income (loss) and comprehensive
income (loss) for the period                    18,928            (31,803)
                                               =======            =======
Net income (loss) and comprehensive
income (loss) attributable to
Shareholders of the company                     13,617            (23,968)
Non-controlling interest                         5,311             (7,835)
                                               -------            -------
                                                18,928            (31,803)
                                               =======            =======
Earnings (loss) per share                         0.11              (0.21)
Adjusted earnings per share                      (0.07)              0.04         

The full set of financial statements and accompanying management's discussion and analysis are posted on SEDAR.

Exploration update

At the Copper Mountain site the exploration work during the quarter consisted of continuous near-mine compilation work as well as developing localized exploration drill programs to optimize long-term mine planning. The exploration team continues to investigate and evaluate early and advanced exploration properties, as well as development projects, which are predominately located within the Americas.

Guidance -- 2016

The 2016 mine plan has a majority of ore coming from pit No. 2 and the Virginia pit areas. The 2016 guidance remains unchanged for the balance of 2016.

A conference call and audio webcast will be held on Monday, May 2, 2016, at 7:30 a.m. PT for management to discuss the first quarter 2016 results. This discussion will be followed by a question-and-answer period with investors.

Live dial-in information:

Toronto and international:  416-764-8688

North America (toll-free):  888-390-0546

A webcast will be available on-line.

Replay call information:

Toronto and international:  416-764-8677

North America (toll-free):  888-390-0541

Passcode:  976881

The conference call replay will be available from 10:30 a.m. PT on May 2, 2016, until 11:59 p.m. PT on Monday, May 16, 2016. Participant audio webcast will also be available on the company's website.

We seek Safe Harbor.

© 2024 Canjex Publishing Ltd. All rights reserved.