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, Feb. 20, 2015 /CNW/ - Copper Mountain
Mining Corporation (TSX: CUM) (the "Company" or "Copper
Mountain") announces revenues of $265.7
million after pricing adjustments and treatment charges for
the year ended December 31, 2014 from
the sale of 80.7 million pounds of copper, 24,700 ounces of gold,
and 427,600 ounces of silver.
Year End 2014 Highlights (100% Basis)
- Copper, gold and silver production for the 2014 fiscal year at
Copper Mountain Mine (100%) was 81 million pounds of copper, 22,600
ounces of gold and 443,800 ounces of silver. This represents a 23%
growth in copper production from 2013.
- Revenues for the 2014 year were $265.7
million from metal sales.
- Gross profit for the year was $31.8
million.
- Cash flow from operations was $47.2
million or $0.40 per share an
increase of 48% over the previous year.
- Adjusted EBITDA[1] of $78.8
million, an increase of 35% over the previous year.
- Adjusted earnings per share1 of $28.7 million or $0.24 per share
- Mine production increased, with the addition of the new mine
dispatch system, exiting 2014 at a rate of 175,000 TPD mined.
- Mill capacity improved during the year, with the addition
of the permanent secondary crusher, exiting 2014 at a rate of
36,200 tpd for the last two weeks of December
- Site cash costs for the year was US$1.49 per pound of copper produced net of
precious metal credits.
- Total cash costs for the year was US$1.98 per pound of copper sold net of precious
metal credits and after all off- site charges.
- Realized prices on metal sales for 2014 was $3.11 per pound of copper, $1,266 per ounce of gold and $19.08 per ounce of silver.
Jim O'Rourke, President and CEO
of Copper Mountain, remarked "The mine achieved record
production in 2014 and ended the year with the addition of the new
permanent $40 million secondary
crusher which in turn increased mill throughput above 35,000 tpd
design capacity. Copper production increased 22% from the prior
year and was within guidance. Clearly the secondary crusher has
made a significant improvement on the operational performance of
the concentrator by delivering a consistent feed size of ore to the
SAG mill".
Mr. O'Rourke continued, "Looking forward, we see
the next twelve months as a period of continued optimization to
further strengthen our operating base. Production for 2015 will
come mainly from the Pit 2 area providing higher gold
production. We have a strong operating team and I am
confident that the mine will meet our production goals and be able
to reduce costs to help offset the weaker copper price".
Summary Financial Results
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Three months
ended
December
31,
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Year
ended
December
31,
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(CDN$, except for
cash cost data in US$)
|
2014
$
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2013
$
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2014
$
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2013
$
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Revenues
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53,913,648
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64,714,231
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265,675,927
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233,122,274
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Gross profit
(loss)
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1,444,734
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8,234,296
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31,760,280
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31,033,666
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Cash flow from
operations
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17,409,412
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15,450,111
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47,196,650
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31,851,327
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Operating income
(loss)
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498,220
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6,719,364
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23,011,351
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25,498,442
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Adjusted earnings
(loss)2
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5,635,758
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4,724,691
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28,745,338
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14,544,023
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Net Income
(loss)
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(16,245,042)
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(4,145,430)
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(22,530,950)
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(3,414,357)
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Earnings (loss)
attributable to shareholders of the Company
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(12,703,961)
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(2,803,695)
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(18,220,950)
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(3,245,051)
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Adjusted earnings
(loss) per share3
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0.05
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0.05
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0.24
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0.15
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Earnings (loss)
per share4
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(0.11)
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(0.03)
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(0.15)
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(0.03)
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EBITDA
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(4,833,890)
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6,594,093
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27,501,470
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40,501,071
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Adjusted
EBITDA
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17,046,910
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15,464,214
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78,777,758
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58,459,451
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Cash and cash
equivalents
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21,600,228
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42,281,137
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Working
capital
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18,030,678
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42,649,596
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Equity
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280,140,008
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288,500,630
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Copper produced
(lbs)
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20,259,000
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18,600,000
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80,941,000
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66,200,000
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Gold produced
(oz)
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6,100
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4,300
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22,600
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21,600
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Silver produced
(oz)
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101,100
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105,800
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443,800
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320,400
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Copper sold
(lbs)
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17,648,000
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18,492,000
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80,748,000
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64,841,000
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Gold sold
(oz)
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4,100
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6,600
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24,700
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24,200
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Silver sold
(oz)
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100,200
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89,000
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427,600
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301,300
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Site cash costs
per pound of copper produced (net of gold, silver credits)
(US$)
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1.54
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1.68
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1.49
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1.70
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Total cash costs
per pound of copper sold (net of gold, silver credits)
(US$)
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1.94
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2.19
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1.98
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2.22
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Copper Mountain Mine
During the year, the company completed fourteen shipments of
concentrate containing approximately 80.7 million pounds of copper
to Japan for smelting and recorded
revenues, net of smelter charges and pricing adjustments, of
$266 million, realizing a gross
profit of $32 million. The
total cash cost of copper sold for the year ended December 31, 2013 was US$1.99 per pound of copper net of gold and
silver by-product credits.
Mining activities continued in the Pit 2 and Pit 3 areas
throughout 2014. The new mine dispatch system has proven to
be a valuable tool to maximize haulage truck load factors and
improve mining efficiencies. A total of 60 million tonnes of
material was mined, including 18.8 million tonnes of ore and 41.3
million tonnes of waste at an average mining rate of 175,000 tpd
moved during 2014. The ore grade averaged 0.40% Copper for
the year. Site cash costs were $1.49 per pound of copper after gold and silver
by-product credits.
Mill throughput from the concentrator was improved more than 10%
during 2014 as compared to 2013. During the first quarter of
2014, SAG mill throughput was averaging about 29,280 tpd while
utilizing temporary portable crushers and by year end mill
throughput had increased 24% to an average of 36,200 tpd for
the last two weeks of December. The improvement in mill
throughput during the year was a direct result of feeding the SAG
mill with finer ore. Construction of the $40
million secondary crusher was completed on time and on
budget by the end of July 2014. Commissioning of the crusher
commenced immediately and by the end of the third quarter a marked
improvement in production was noted. Some technical and
mechanical issues limited the crusher's ability to run at 100% of
designed capacity but these were resolved in the fourth
quarter. At the end of the year the secondary crusher was
operating at designed capacity and the finer mill feed provided the
increased milling rate as planned.
The mine exited the year on a positive note with copper
production at 20,300 million pounds of copper, 6,100 ounces of gold
and 101,000 ounces of silver during the three months of operations
ended December 31, 2014. This
brought production for the twelve months ended December 31, 2014 to 81 million pounds of copper,
22,600 ounces of gold and 443,700 ounces of
silver.
Listed below are a summarized balance sheet and income statement
as well as details for our conference call schedule:
Summarized Balance Sheet
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December
31,
2014
$
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December
31,
2013
$
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Assets
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Cash
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21,600,228
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42,281,137
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Accounts Receivable
and prepaids
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6,886,175
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17,953,700
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Inventory
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44,420,673
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26,789,416
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Property, plant and
equipment
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559,118,221
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531,890,214
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Other
Assets
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60,637,691
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44,166,934
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692,662,988
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663,081,401
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Liabilities
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Current
liabilities
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54,876,398
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44,374,657
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Decommissioning and
restoration provision
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7,797,154
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6,245,963
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Interest rate swap
liability
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7,180,836
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6,364,019
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Long-term
debt
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332,902,291
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311,241,671
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Deferred tax
liability
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9,766,301
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6,354,461
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415,522,980
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374,580,771
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Equity
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Share
capital
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188,306,341
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186,291,105
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Contributed
surplus
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11,818,044
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9,662,977
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Retained earnings
(deficit)
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(2,928,184)
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15,292,029
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Non-controlling
interest
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82,943,807
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77,254,519
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Total
equity
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280,140,008
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288,500,630
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692,662,988
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663,081,401
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Summarized Income Statement
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Three months
ended
December
31,
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Year
ended
December
31,
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(CDN$)
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2014
$
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2013
$
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2014
$
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2013
$
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Revenues
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53,913,648
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64,714,231
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265,675,927
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233,122,274
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Cost of
sales5
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(52,468,914)
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(56,479,935)
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(233,915,647)
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(202,088,608)
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Gross
profit
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1,444,734
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8,234,296
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31,760,280
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31,033,666
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Other income and
expenses
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General and
administration
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(1,408,646)
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(1,514,514)
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(5,995,452)
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(5,493,368)
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Share based
compensation
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462,132
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(418)
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(2,753,477)
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(41,856)
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Operating
income
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498,220
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6,719,364
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23,011,351
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25,498,442
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Pricing adjustments
on concentrate and metal sales
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6,760,792
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(185,387)
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17,899,517
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1,031,760
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Finance
income
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6,240
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171,365
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197,148
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387,438
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Finance
expense
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(2,358,197)
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(2,390,128)
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(8,971,230)
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(8,773,795)
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Current resource tax
expense
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(149,202)
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602,290
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(985,610)
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(632,750)
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Deferred income and
resource tax recovery
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877,905
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(192,813)
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2,405,838
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(2,967,072)
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Adjusted
earnings6
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5,635,758
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4,724,691
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28,745,338
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14,544,023
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Pricing adjustments
on concentrate and metal sales
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(6,760,792)
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185,387
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(17,899,517)
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(1,031,760)
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Unrealized gain
(loss) on interest rate swap
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(2,464,087)
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(57,270)
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(4,779,505)
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2,217,428
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Unrealized gain
(loss) on foreign exchange
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(12,625,921)
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(8,998,238)
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(28,597,266)
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(19,144,048)
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Net income (loss)
and comprehensive income (loss) for the period
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(16,245,042)
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(4,145,430)
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(22,530,950)
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(3,414,357)
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Net income (loss)
and comprehensive income (loss) attributable to:
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Shareholders of the
company
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(12,703,961)
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(2,803,695)
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(18,220,213)
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(3,245,051)
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Non-controlling
interest
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(3,541,081)
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(1,341,735)
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(4,310,737)
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(169,306)
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(16,245,042)
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(4,145,430)
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(22,530,950)
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(3,414,357)
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Earnings (loss)
per share
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(0.11)
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(0.03)
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(0.15)
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(0.03)
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Adjusted earnings
per share
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0.05
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0.05
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0.24
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0.15
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The full set of financial statements and
accompanying MD&A are posted on Sedar.com.
2015 Guidance:
The 2015 guidance is based on mining at a rate of 185,000 tonnes
per day to mine a total of 16.6 million tonnes of high grade
material, 13.8 million tonnes of low grade material, 37 million
tonnes of waste at a strip ratio of 1.22 to 1. Mining costs
are estimated to be $1.75 per tonne
mined. Mill production is based on achieving 37,500 tpd
through the mill at an average head grade of 0.33% Cu (0.41% CuEq)
and recoveries of 82% to produce about 100 million pounds of copper
equivalent which includes about 80 million pounds of copper, 35,000
ounces of gold, and 290,000 ounces of silver.
About Copper Mountain Mining Corporation:
Copper Mountain's flagship asset is the 75% owned 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 the
remaining 25%. The Copper Mountain mine commenced production in the
latter half of 2011, and has continued to improve its operations.
The key development for 2014 was the installation of the secondary
crusher as a permanent solution to maximize concentrator throughput
and improve overall efficiencies for the company. Secondary
crusher construction was completed by the end of July 2014 on budget and on schedule. 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 page at
www.CuMtn.com.
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The Conference call has been changed by one business
day from the original scheduled date to accommodate management's
travel schedule. A conference call and audio webcast will now be
held on Monday February 23th, 2015 at 7:00 am (Eastern
Standard Time) for management to discuss the 2014 year end
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/1470513/1636877
Replay call information
Toronto and international: 416-764-8677,
passcode 045842
North
America (toll-free): 888-390-0541, passcode
045842
The conference call replay will be available from
10:00 am (EST) on February 23, 2015 until 11:59 pm PST on March 9,
2015.
Participant audio webcast
will also be available on the Company's website at
http://www.cumtn.com
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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 statement.
1 Adjusted EBITDA and adjusted earnings per share are
non-GAAP financial measurements which remove unrealized gains/
losses on derivative instruments and foreign exchange gains/
losses
2 Adjusted earnings (loss) and adjusted earnings (loss)
per share are non-GAAP financial measures which remove unrealized
gains/losses on interest rate swaps and unrealized foreign currency
gains/losses.
3 Calculated based on weighted average number of shares
outstanding under the basic method based on adjusted earnings.
4 Calculated based on weighted average number of shares
outstanding under the basic method based on earnings attributable
to shareholders.
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.
SOURCE Copper Mountain Mining Corporation