Web Site: www.CuMtn.com
TSX: CUM
VANCOUVER, May 2, 2016 /CNW/ - Copper Mountain Mining
Corporation (TSX: CUM) (the "Company" or "Copper
Mountain") announces 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
US$1.61 per pound of copper sold, net
of precious metals credits.
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Highlights (100%
Basis)
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- 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.
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- 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.
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- Gross profit for the quarter was $1.6
million.
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- EBITDA was $34.4 million for the quarter,
compared to a loss of $17.7 million in the same quarter for
2015.
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- A mining rate of 192,000 tonnes moved was
achieved during the quarter, compared to 158,000 tonnes moved
during 2015.
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- Mill throughput achieved a record of 39,980
tpd in February and averaged 37,100 tpd during the quarter.
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- Site cash costs for the quarter were US$1.16
per pound of copper produced net of precious metal credits.
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- Total cash costs for the quarter were in-line
with expectations at US$1.61 per pound of copper sold net of
precious metal credits and after all off-site charges, a reduction
of 9% over Q1 2015 total cash costs.
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- Realized prices on metal sales for Q1 2016
were US$2.10 per pound of copper, US$1,188 per ounce of gold and
US$14.89 per ounce of silver.
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Jim O'Rourke, President and CEO
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% to US$1.61 per pound of copper sold net of precious
metal credits and after all off-site charges, over Q1 2015 total
cash costs. Mine production was strong during the quarter
with approximately 192,000 tonnes mined per day, well above our
2016 guidance of 174,000 tpd. Mill throughput for the quarter
averaged 37,100 tpd, a 9% quarter-over-quarter increase, further
demonstrating Copper Mountain's ability to operate above design
capacity of 35,000 tpd on a sustained basis".
Mr. O'Rourke continued, "At this time, I would like to
acknowledge the dedication and efforts of our employees and
suppliers for their commitments and cooperation in successfully
tackling the challenges necessary to survive in the current copper
price environment. We continue to focus on cost control and
operational improvements to deal with the reality of the current
global economic climate and are well positioned to benefit from
higher metal prices in the future."
Summary Financial Results
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Three months
ended
March
31,
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(CDN$, except for
cash cost data in US$)
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2016
$
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2015
$
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Revenues
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58,726
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71,457
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Gross profit
(loss)
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1,564
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6,750
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Operating income
(loss)
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(450)
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4,474
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Adjusted earnings
1
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(7,880)
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4,312
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Adjusted earnings
per share2
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(0.07)
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0.04
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EBITDA
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34,002
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(17,676)
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Adjusted
EBITDA
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7,194
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18,439
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Cash Flow from
operating activities before working capital items
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15,161
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17,876
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Cash and cash
equivalents
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1,761
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14,792
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Accounts payable
and accrued liabilities
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30,519
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40,608
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Working
capital
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(13,946)
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17,923
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Equity
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195,348
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248,686
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Copper produced
(000's lbs)
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19,000
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18,400
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Gold produced
(oz)
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7,600
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7,800
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Silver produced
(oz)
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64,700
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80,300
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Copper sold (000's
lbs)
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18,100
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21,500
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Gold sold
(oz)
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6,900
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7,600
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Silver sold
(oz)
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61,200
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92,700
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Site cash costs
per pound of copper produced (net of gold, silver credits)
(US$)
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1.16
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1.21
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Total cash costs
per pound of copper sold (net of gold, silver credits)
(US$)
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1.61
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1.77
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Realized Copper
Price (US$)
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2.10
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2.64
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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 US$1.16 per pound of copper produced and total
cash costs were US$1.61 per pound
sold, net of precious metal credits for the three months ended
March 31, 2016; compared to site cash
costs of US$1.21 per pound of copper
produced and total cash costs of US$1.77 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 #2 and the
Virginia pit areas for the first
quarter of 2016. During the quarter a total of 17.4 million tonnes
of material was mined, including 5.7 million tonnes of ore and 11.8
million tonnes of waste for a strip ratio of 2.07:1. 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% copper to produce 19 million pounds of
copper, 7,600 ounces of gold, and 64,600 ounces of silver. Mill
recoveries were 82% for the quarter. Mill operating time
during the quarter averaged 91% operating time, with March
operating time coming in at 93.5%, compared to 93.2% 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.
Listed below is a summarized balance sheet and income statement
as well as details for our conference call schedule:
Summarized Balance Sheet
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March
31,
2016
$
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December
31,
2015
$
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Assets
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Cash
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1,761
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12,190
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Accounts Receivable
and prepaids
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16,865
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11,990
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Inventory
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45,162
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44,882
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Property, plant and
equipment
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504,904
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519,750
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Other
Assets
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64,577
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58,494
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633,269
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647,306
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Liabilities
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Accounts payable and
accrued liabilities
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32,479
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40,608
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Current portion of
long-term debt
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31,361
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33,115
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Other
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13,894
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10,704
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Decommissioning and
restoration provision
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6,943
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7,787
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Interest rate swap
liability
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8,678
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7,061
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Long-term
debt
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344,566
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371,610
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437,921
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470,885
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Equity
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Share
capital
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188,306
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188,306
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Contributed
surplus
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13,159
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12,929
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Retained earnings
(deficit)
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(67,762)
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(81,379)
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Non-controlling
interest
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61,645
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56,565
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Total
equity
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195,348
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176,421
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633,269
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647,306
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Summarized Income Statement
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Three months
ended
March
31,
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(CDN$)
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2016
$
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2015
$
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Revenues
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58,726
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71,457
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Cost of
sales3
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(57,162)
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(64,707)
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Gross
profit
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1,564
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6,750
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Other income and
expenses
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General and
administration
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(1,780)
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(1,951)
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Share based
compensation
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(234)
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(325)
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Operating
income
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(450)
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4,474
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Pricing adjustments
on concentrate and metal sales
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(4,226)
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1,881
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Finance
income
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97
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113
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Finance
expense
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(3,131)
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(2,510)
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Current resource tax
expense
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(170)
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(365)
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Deferred income and
resource tax recovery
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-
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720
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Adjusted
earnings4
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(7,880)
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4,312
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Pricing adjustments
on concentrate and metal sales
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4,226
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(1,881)
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Unrealized gain
(loss) on interest rate swap
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(2,566)
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(1,991)
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Unrealized gain
(loss) on foreign exchange
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25,148
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(32,244)
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Net income (loss)
and comprehensive income (loss) for the period
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18,928
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(31,803)
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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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13,617
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(23,968)
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Non-controlling
interest
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5,311
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(7,835)
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18,928
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(31,803)
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Earnings (loss)
per share
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$0.11
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($0.21)
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Adjusted earnings
per share
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($0.07)
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$0.04
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The full set of financial statements and
accompanying MD&A are posted on Sedar.com.
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 America's.
2016 Guidance:
The 2016 mine plan has a majority of
ore coming from Pit #2 and the Virginia Pit areas. The 2016
guidance remains unchanged for the balance of
2016.
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
since start-up. 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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A conference call and
audio webcast will be held on Monday, May 2, 2016 at 7:30 am
(Pacific Daylight Time) for management to discuss the first quarter
2016 results. This discussion will be followed by a
question-and-answer period with investors.
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Live Dial-in
information
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Toronto and
international:
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416-764-8688
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North America
(toll-free):
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888-390-0546
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To participate in the
webcast live via your computer go to:
http://event.on24.com/r.htm?e=1171926&s=1&k=51D90C49DE9731DBE0BEAE8E2DBEA4DC
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Replay call
information
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Toronto and
international:
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416-764-8677,
passcode 976881
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North America
(toll-free):
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888-390-0541,
passcode 976881
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The conference call
replay will be available from 10:30 am (PDT) on May 2nd,
2016, until 11:59 pm PST on Monday, May 16, 2016
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 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.
2 Calculated based on weighted average number of shares
outstanding under the basic method based on adjusted earnings.
3 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.
4 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