Web Site: www.CuMtn.com
TSX: CUM
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This release should be read with the unaudited
financial statements and management's discussion and analysis
available at www.cumtn.com and filed on www.sedar.com. Our
financial results are prepared in accordance with IFRS and
expressed in Canadian dollars, unless otherwise noted. Sales and
production volumes for the Company's 75%-owned Copper Mountain mine
are presented on a 100% basis unless otherwise
indicated.
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VANCOUVER, Nov. 12, 2014 /CNW/ - Copper Mountain
Mining Corporation (TSX: CUM) (the "Company" or "Copper
Mountain") announces sales of 25.3 million pounds of copper,
7,800 ounces of gold and 133,800 ounces of silver to generate
revenues of $82.5 million net
of pricing adjustments and treatment charges, an increase of 51%
over the third quarter of 2013. Third quarter sales of 25.3 million
pounds of copper include the recovery from the ship loading error
which occurred during the quarter.
Third Quarter 2014 Highlights (100% Basis)
- The Company achieved record production for the 2014 third
quarter at Copper Mountain Mine with 21.7 million pounds of copper,
6,100 ounces of gold and 124,100 ounces of silver being produced.
This represents a 22% increase in copper production above the same
period last year.
- Revenues for the quarter were $82.5
million net of pricing adjustments, an increase of 51% over
the third quarter of 2013.
- Cash flow from operating activities was $17.8 million for the 2014 third quarter .
- EBITDA1 was $12.3
million for the three months ended September 30th,
2014.
- Gross profit totaled $18.8 for
the three months ended September
30th, 2014.
- Site cash costs for the 2014 third quarter were US$1.19 per pound of copper produced net of
precious metal credits, a reduction of 29% as compared to the 2013
third quarter.
- Total cash costs for the period were US$1.73 per pound of copper sold net of precious
metal credits and after all off-site charges, a reduction of 22% as
compared to the 2013 third quarter.
- Realized prices on metal sales were US$3.17 per pound of copper, US$1,283 per ounce of gold and US$19.73 per ounce of silver.
- Secondary crusher installation was completed on budget and on
schedule and processed its first ore on August 4th , 2014.
The 2014 third quarter reflects two months of commissioning. The
main site priority is to continue tuning the secondary crusher
circuit to produce a consistent fine mill feed to support higher
mill tonnage rates.
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_______________________________________________________
1
Refer to the Non-GAAP performance measures section of the
MD&A
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Jim O'Rourke, President and CEO
of Copper Mountain, remarked,
"This quarter marks our 8th consecutive quarter of
improved copper production. Year to date copper production remains
on track to meet guidance levels of 80-90 million pound of copper
for the 2014 fiscal year. Commissioning of the new secondary
crusher has gone well and it is operating at rates that allow the
mill to reach its design capacity of 35,000 tpd. Additional fine
tuning of the crusher and SAG mill is the top mine site priority to
reach higher tonnage levels. Post quarter end, we have started to
see the mill operate in the 35,000 to 40,000 tpd range."
Mr. O'Rourke continued, "Focus at the mine site continues on
identifying and capturing cost savings while supporting continued
production increases. During this quarter, site cash costs were
reduced because of discontinuation of the temporary measures of
contract crushing and portable crushing. In addition, record
production of 21.7 million pounds of copper and a favourable
average head grade of 0.42% Cu helped to decrease the unit
operating costs significantly during the quarter."
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Summary Financial
Results
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Three months
ended
September
30,
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Nine months
ended
September
30,
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|
(CDN$, except for
cash cost data in US$)
|
2014
$
|
2013
$
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2014
$
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2013
$
|
|
|
|
|
|
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Revenues
|
82,546,359
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67,615,718
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211,762,279
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168,408,043
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Gross
profit
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18,826,834
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16,369,921
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30,315,546
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22,799,370
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Operating
income
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16,715,400
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15,094,744
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22,513,131
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18,779,078
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Adjusted earnings
2
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18,178,961
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447,137
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23,109,580
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9,819,332
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Net income
(loss)
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(3,973,968)
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15,086,632
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(6,285,908)
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731,073
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Earnings (loss)
attributable to shareholders of
the Company
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(2,820,267)
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11,228,008
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(5,516,252)
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(441,356)
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(Loss) earnings
per share3
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(0.02)
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0.11
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(0.05)
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0.00
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Adjusted earnings
per share4
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0.15
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0.00
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0.20
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0.10
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EBITDA
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12,253,673
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29,450,061
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32,335,360
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33,906,978
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Cash flows from
operating activities
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17,792,717
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15,450,111
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29,787,238
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19,016,963
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Cash flows from
operating activities per common share
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0.15
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0.16
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0.25
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0.19
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Cash and cash
equivalents
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17,831,158
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17,111,172
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Working
capital
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20,802,619
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12,770,023
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Equity
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295,884,130
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264,430,692
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Copper produced
(lbs)
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21,700,000
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17,700,000
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60,600,000
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47,600,000
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Gold produced
(oz)
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6,100
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6,400
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16,600
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17,400
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Silver produced
(oz)
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124,100
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79,300
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342,600
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214,500
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Copper sold
(lbs)
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25,300,000
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16,630,000
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63,100,000
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46,349,000
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Gold sold
(oz)
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7,800
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6,300
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20,600
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17,600
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Silver sold
(oz)
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133,800
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77,100
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327,400
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212,600
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Site cash costs
per pound of copper produced
(net of gold, silver credits) (US$)
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1.19
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1.68
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1.48
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1.71
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Total cash costs
per pound of copper sold (net
of gold, silver credits) (US$)
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1.73
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2.22
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2.00
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2.24
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_______________________________________
2
Adjusted earnings (loss) is a non-GAAP financial measure which
removes unrealized gains/losses on interest rate swaps, pricing
adjustments on concentrate metal sales and foreign currency
gains/losses.
3 Calculated based on weighted average number of shares
outstanding under the basic method based on earnings attributable
to shareholders.
4 Calculated based on weighted average number of shares
outstanding under the basic method based on adjusted
earnings.
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Copper Mountain Mine
During the third quarter, the mine shipped a total 45,800 DMT of
copper concentrate containing approximately 25.3 million pounds of
copper to Japan for smelting and
recorded revenues, net of smelter charges and pricing adjustments,
of $82.5 million, realizing a gross
profit of $18.8 million. The
total cash cost of copper sold for the three months ended
September 30, 2014 was US$1.73 per pound after gold and silver
by-product credits.
During the third quarter, the mine achieved record copper
production. Total production for the three months ended September
30 , 2014 was 21.7 million pounds of copper, 6,100 ounces of
gold and 124,100 ounces of silver. This represents a 23% growth in
copper production from the same period last year.
SAG Mill throughput improved during the quarter with a total of
2.8 million tonnes of ore being milled at an average grade of 0.42%
copper, as compared to 2.7 million tonnes of ore being milled at an
average grade of 0.34% copper in the third quarter of 2013.
The mill achieved a 90.5% operating time during the quarter and
copper production was in line with guidance.
Construction of the new permanent secondary crusher facility was
completed on schedule and on budget. Commissioning of the new
secondary crusher commenced in early August and the crusher has
been operating well. The supplier of the crusher has a few
modifications to make in order for the crusher to operate at its
optimum performance level. With the contribution of the new
crusher, the SAG mill throughput had a weighted average of 37,294
tpd during the first week of November.
Mining activities continued on the completion of mining ore from
the stage two pushback of Pit 3 and the start of the stage three
pushback of Pit#3. Mining activities are also progressing in
the Pit 2 area on the southwest pushback. During the quarter,
a total of 15.3 million tonnes of material was mined, including 4.5
million tonnes of ore and 10.8 million tonnes of waste. The
projected life of mine strip ratio is 2 to 1 but higher in the
early years. The mine moved an average of approximately
178,000 tonnes of material per day during the quarter. The mining
fleet continues to have favourable mechanical availability.
Listed below are a summarized balance sheet and income statement
as well as conference call-in details:
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September
30,
2014
$
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December
31,
2013
$
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Assets
|
|
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Cash
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17,831,158
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42,281,137
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Accounts receivable
and prepaids
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32,629,325
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17,953,700
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Inventory
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29,388,793
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26,789,416
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Property, plant and
equipment
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568,404,659
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531,890,214
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Other
Assets
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55,682,436
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44,166,934
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703,936,371
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663,081,401
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Liabilities
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Current
liabilities
|
59,046,657
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44,374,657
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Decommissioning and
restoration provision
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7,908,456
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6,245,963
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Interest rate swap
liability
|
6,801,004
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6,364,019
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Long-term
debt
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323,821,512
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311,241,671
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Deferred tax
liability
|
10,474,612
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6,354,461
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408,052,241
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374,580,771
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Equity
|
|
|
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Share
capital
|
188,298,205
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186,291,105
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Contributed
surplus
|
11,325,260
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9,662,977
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Retained
earnings
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9,775,777
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15,292,029
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Non-controlling
interest
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86,484,888
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77,254,519
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Total
equity
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295,884,130
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288,500,630
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703,936,371
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663,081,401
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Summarized Income
Statement
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Three months
ended
September
30,
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Nine months
ended
September
30,
|
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(CDN$)
|
2014
$
|
2013
$
|
2014
$
|
2013
$
|
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Revenues
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82,546,359
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67,615,718
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211,762,279
|
168,408,043
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Cost of
sales5
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(63,719,525)
|
(51,245,797)
|
(181,446,733)
|
(145,608,673)
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Gross profit
(loss)
|
18,826,834
|
16,369,921
|
30,315,546
|
22,799,370
|
|
|
|
|
|
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Other income and
expenses
|
|
|
|
|
|
General and
administration
|
(1,672,495)
|
(1,249,714)
|
(4,586,806)
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(3,978,854)
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Share based
compensation
|
(438,939)
|
(25,463)
|
(3,215,609)
|
(41,438)
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Operating income
(loss)
|
16,715,400
|
15,094,744
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22,513,131
|
18,779,078
|
|
|
|
|
|
|
Pricing adjustments
on concentrate and metal sales
|
7,055,406
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(8,282,970)
|
11,138,725
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1,217,147
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Finance
income
|
33,921
|
30,649
|
190,908
|
216,073
|
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Finance
expense
|
(1,942,041)
|
(2,080,671)
|
(6,613,033)
|
(6,383,667)
|
|
Income tax
expense
|
(446,352)
|
(817,615)
|
(836,408)
|
(1,235,040)
|
|
Deferred income and
resource tax recovery (expense)
|
(3,237,373)
|
(3,497,000)
|
(3,283,743)
|
(2,774,259)
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Adjusted (loss)
earnings6
|
18,178,961
|
447,137
|
23,109,580
|
9,819,332
|
|
|
|
|
|
|
Pricing adjustments
on concentrate and metal sales
|
(7,055,406)
|
8,282,970
|
(11,138,725)
|
(1,217,147)
|
|
Unrealized gain
(loss) on interest rate swap
|
219,522
|
(279,510)
|
(2,285,418)
|
2,274,698
|
|
Unrealized gain
(loss) on foreign exchange
|
(15,317,045)
|
6,636,035
|
(15,971,345)
|
(10,145,810)
|
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Net income (loss)
comprehensive income(loss) for the
period
|
(3,973,968)
|
15,086,632
|
(6,285,908)
|
731,073
|
|
|
|
|
|
|
Net income (loss)
and comprehensive income (loss)
attributable to:
|
|
|
|
|
|
Shareholders of the
company
|
(2,820,267)
|
11,228,008
|
(5,516,252)
|
(441,356)
|
|
Non-controlling
interest
|
(1,153,701)
|
3,858,624
|
(769,656)
|
1,172,429
|
|
(3,973,968)
|
15,086,632
|
(6,285,908)
|
731,073
|
|
|
|
|
|
|
Earnings (loss)
per share
|
(0.02)
|
0.11
|
(0.05)
|
0.00
|
|
Adjusted (loss)
earnings per share
|
0.15
|
0.00
|
0.20
|
0.10
|
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______________________________
5
Cost of sales consists of direct mining and milling costs (which
include mine site employee compensation and benefits, mine site
general and administrative costs, non-capitalized stripping costs,
maintenance and repair costs, operating supplies and external
services), depreciation and offsite transportation costs.
6 Adjusted earnings (loss) is a non-GAAP financial
measure which excludes unrealized gains/losses on derivative
instruments, changes in fair value of financial instruments,
foreign currency gains/losses, pricing adjustments related to metal
sales and non-recurring transactions.
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The full set of financial statements and
accompanying MD&A are posted on Sedar.com.
About Copper Mountain Mining Corporation:
Copper
Mountain's flagship asset is the Copper Mountain mine located in
southern British Columbia near the
town of Princeton. The Company has
a strategic alliance with Mitsubishi Materials Corporation who owns
25% of the mine. The Copper Mountain mine commenced production in
the summer of 2011 and has continued to improve its operations
since startup. The 18,000 acre site has a large resource of
copper that remains open laterally and at depth. The mine has
significant exploration potential that will need to be explored
over the next few years to fully appreciate the property's full
development potential. Additional information is available on
the Company's web site at www.CuMtn.com.
A conference call and audio webcast will be held on
Wednesday November 12th,
2014 at 7:30 am (Pacific Standard
Time) for management to discuss the 2014 third quarter
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
To participate in the webcast live via
your computer go to:
http://www.newswire.ca/en/webcast/detail/1423666/1581318
Replay call
information
Toronto
and international: 416-764-8677, passcode
397969
North
America (toll-free): 888-390-0541,
passcode 397969
The conference call replay will be available from
10:30 am (PST) on November 12, 2014 until 11:59 pm PST on November
26, 2014
Participant audio webcast will also
be available on the company's website at
http://www.cumtn.com
On behalf of the Board of
COPPER MOUNTAIN MINING CORPORATION
"Rod
Shier"
Rodney A. Shier, CA.
Chief Financial Officer
Note: This release contains forward-looking statements
that involve risks and uncertainties. These statements may
differ materially from actual future events or results.
Readers are referred to the documents, filed by the Company on
SEDAR at www.sedar.com, specifically the most recent reports which
identify important risk factors that could cause actual results to
differ from those contained in the forward-looking
statements. The Company undertakes no obligation to review or
confirm analysts' expectations or estimates or to release publicly
any revisions to any forward-looking statements.
SOURCE Copper Mountain Mining Corporation