Web Site: www.CuMtn.com
TSX: CUM
VANCOUVER, Aug. 8, 2016 /PRNewswire/ - Copper Mountain
Mining Corporation (TSX: CUM) (the "Company" or "Copper
Mountain") announces second quarter revenues of $62.6 million after pricing adjustments and
treatment charges from the sale of 24.9 million pounds of copper
equivalent (including 20.1 million pounds of copper, 7,200 ounces
of gold, and 63,700 ounces of silver). Total cash cost for
the quarter ended June 30, 2016 was
US$1.58 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 second
quarter of 2016 at Copper Mountain Mine was 26.5 million pounds of
copper equivalent which includes 21.2 million pounds of copper,
7,980 ounces of gold and 74,600 ounces of silver.
- Revenues for the second quarter of 2016 were $62.6
million from the sale of 20.1 million pounds of copper, 7,200
ounces of gold, and 63,700 ounces of silver, net of pricing
adjustments.
- Gross profit for the quarter was $2.4
million.
- EBITDA was $13.1 million for the quarter, compared to
$14.8 million in the same quarter for 2015.
- Mill throughput averaged 37,300 tpd during the quarter,
up 5% as compared to 35,600 for the same quarter for 2015.
- Site cash costs for the quarter were US$1.17 per pound
of copper produced net of precious metal credits.
- Total cash costs for the quarter were in-line with
expectations at US$1.58 per pound of copper sold net of precious
metal credits and after all off-site charges, a reduction of 8%
over Q2 2015 total cash costs.
- Realized prices on metal sales for Q2 2016 were US$2.13
per pound of copper, US$1,269 per ounce of gold and US$16.62 per
ounce of silver.
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Jim O'Rourke, President and CEO
of Copper Mountain, remarked "During the second quarter of 2016,
Copper Mountain continued to demonstrate improvement in production.
The mill finished the quarter strong by averaging 39,800 tpd
throughput for the last two weeks of the month. This
continued for the month of July where a new mill throughput record
of 40,700 tpd monthly average was achieved. Despite the
challenging commodities price environment, the mine has been cash
flow positive from operations by focusing on cost controls and
production efficiencies. Total cash costs for the quarter
decreased by 13% to US$1.58 per pound
of copper sold net of precious metal credits and after all off-site
charges, over Q2 2015 total cash costs. Mine production was
ahead of budget during the quarter with approximately 196,900
tonnes mined per day, well above our 2016 guidance of 174,000
tpd."
Mr. O'Rourke continued, "The increased production has
produced an increase in capital resources. At the end of the
quarter the Company had a total of $24.9
million of capital resources in the form of $5.1 million in cash and cash
equivalents,$9.6 million in
concentrate sales receivables, and $10.2
million of concentrate inventory waiting at the port to be
shipped. We will continue to focus on cost control and
operational improvements to further strengthen the Company's
balance sheet."
Summary Financial Results
|
Three months
ended
June
30,
|
Six months ended
June
30,
|
|
(CDN$, except for cash
cost data in
US$)
|
2016
$
|
2015
$
|
2016
$
|
2015
$
|
|
|
|
|
|
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Revenues
|
62,552
|
56,810
|
121,278
|
128,267
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|
Gross profit
(loss)
|
2,360
|
1,154
|
5,881
|
7,904
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Net (loss) income and
comprehensive (loss)
income
|
(2,275)
|
2,872
|
16,653
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(28,931)
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|
Adjusted earnings (loss)
1
|
(5,313)
|
3,476
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(11,236)
|
7,789
|
|
Adjusted earnings (loss)
per
share2
|
(0.04)
|
0.03
|
(0.09)
|
0.07
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EBITDA
|
13,081
|
14,821
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47,083
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(2,855)
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Adjusted
EBITDA
|
10,043
|
15,426
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19,194
|
33,865
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Cash flow from operating
activities before working capital
items
|
14,335
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6,901
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29,496
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24,777
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|
|
|
|
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Cash and cash
equivalents
|
|
|
5,149
|
22,349
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Accounts payable and
accrued
liabilities
|
|
|
34,039
|
38,847
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Working
capital
|
|
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(17,305)
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15,763
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Equity
|
|
|
193,283
|
251,816
|
|
|
|
|
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Copper produced (000's
lbs)
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21,200
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19,500
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40,200
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37,900
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Gold produced
(oz)
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7,980
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7,800
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15,600
|
15,600
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Silver produced
(oz)
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74,600
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71,100
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139,300
|
151,400
|
|
|
|
|
|
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Copper sold (000's
lbs)
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20,100
|
18,400
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38,200
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39,900
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Gold sold
(oz)
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7,200
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6,300
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14,100
|
13,900
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Silver sold
(oz)
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63,700
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66,700
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124,900
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159,400
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Site cash costs per
pound of copper produced (net of gold, silver credits)
(US$)
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1.17
|
1.36
|
1.21
|
1.30
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Total cash costs per
pound of copper sold (net of gold, silver credits)
(US$)
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1.58
|
1.81
|
1.55
|
1.79
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Realized Copper Price
(US$)
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2.13
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2.74
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2.12
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2.68
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Copper Mountain Mine
During the quarter, the Company completed a total of three
shipments of copper concentrate containing approximately 20.1
million pounds of copper, 7,200 ounces of gold, and 63,700 ounces
of silver which generated $62.6
million in revenue net of treatment and refining charges and
pricing adjustments. Site cash costs were US$1.17 per pound of copper produced and total
cash costs were US$1.58 per pound
sold, net of precious metal credits for the three months ended
June 30, 2016; compared to site cash
costs of US$1.36 per pound of copper
produced and total cash costs of US$1.81 per pound of copper sold, net of precious
metal credits for the three months ended June 30, 2015. The increase in revenue is
a result of stronger sales volumes as compared to the same period
last year, a higher gold price as precious metals account for 20%
of the revenue, and a higher foreign exchange rate for the US
dollar as all sales are in US dollars. The Revenue was
partially offset by a lower copper price realized during the
quarter.
Mining activities continued to be focused in the Pit #2 and the
Virginia pit areas for the second
quarter of 2016. During the quarter a total of 17.9 million
tonnes of material was mined, including 5.7 million tonnes of ore
and 12.2 million tonnes of waste for a strip ratio of 2.14:1.
For the quarter the mining rate averaged 196,000 tonnes per day
moved.
During the quarter the mill processed a total of 3.4 million
tonnes of ore grading 0.34% copper to produce 21.2 million pounds
of copper, 7,980 ounces of gold, and 74,600 ounces of silver. Mill
recoveries were 82.4% for the quarter. Mill operating time
during the quarter averaged 91.5% compared to 90.8% averaged during
Q2 2015. The mill continued to achieve monthly improvements in
throughput during the quarter and averaged a rate of 37,300 tpd for
the quarter. The improvements in throughput continued into
July where the mill averaged 40,700 tpd throughput with a 96%
operating time.
Listed below is a summarized balance sheet and income statement
as well as details for our conference call schedule:
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Summarized Balance
Sheet
|
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|
June
30,
2016
$
|
December 31,
2015
$
|
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Assets
|
|
|
|
Cash
|
5,149
|
12,190
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Accounts Receivable and
prepaids
|
16,556
|
11,990
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Inventory
|
50,129
|
44,882
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Property, plant and
equipment
|
494,671
|
519,750
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Other
Assets
|
69,009
|
58,494
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635,514
|
647,306
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Liabilities
|
|
|
|
Accounts payable and
accrued
liabilities
|
34,039
|
40,608
|
|
Current portion of
long-term
debt
|
40,948
|
33,115
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Other
|
14,152
|
10,704
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|
Hydro
deferral
|
6,828
|
-
|
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Decommissioning and
restoration
provision
|
7,375
|
7,787
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Interest rate swap
liability
|
7,681
|
7,061
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Long-term
debt
|
331,208
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371,610
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|
442,231
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470,885
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Equity
|
|
|
|
Share
capital
|
188,306
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188,306
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Contributed
surplus
|
13,369
|
12,929
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Retained earnings
(deficit)
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(69,656)
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(81,379)
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Non-controlling
interest
|
61,264
|
56,565
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Total
equity
|
193,283
|
176,421
|
|
635,514
|
647,306
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Summarized Income
Statement
|
|
|
|
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Three months
ended
June
30,
|
Six months
ended
June
30,
|
|
(CDN$)
|
2016
$
|
2015
$
|
2016
$
|
2015
$
|
|
Revenues
|
62,552
|
56,810
|
121,278
|
128,267
|
|
Cost of
sales3
|
(60,192)
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(55,656)
|
(115,397)
|
(120,363)
|
|
Gross
profit
|
2,360
|
1,154
|
5,881
|
7,904
|
|
|
|
|
|
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Other income and
expenses
|
|
|
|
|
|
General and
administration
|
(1,199)
|
(2,777)
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(2,979)
|
(4,228)
|
|
Low grade stockpile
write-down
|
(2,262)
|
-
|
(4,219)
|
-
|
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Share based
compensation
|
(212)
|
(258)
|
(446)
|
(583)
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Operating
income
|
(1,313)
|
(1,382)
|
(1,763)
|
3,093
|
|
|
|
|
|
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Finance
income
|
41
|
86
|
138
|
199
|
|
Finance
expense
|
(2,853)
|
(2,516)
|
(5,984)
|
(5,027)
|
|
Unrealized gain (loss) on
interest rate
swap
|
(754)
|
366
|
(3,320)
|
(1,625)
|
|
Unrealized gain (loss) on
foreign
exchange
|
2756
|
5,195
|
27,904
|
(27,049)
|
|
(Loss) income before
tax
|
(2,123)
|
1,749
|
16,975
|
(30,410)
|
|
|
|
|
|
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Current resource tax
expense
|
(152)
|
(102)
|
(322)
|
(467)
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Deferred income and
resource tax
recovery
|
-
|
1,225
|
-
|
1,945
|
|
Net income (loss) and
comprehensive income (loss) for the
period
|
(2,275)
|
2,872
|
16,653
|
(28,931)
|
|
|
|
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Net income (loss) and
comprehensive income (loss) attributable
to:
|
|
|
|
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Shareholders of the
company
|
(1,894)
|
1,642
|
11,723
|
(22,326)
|
|
Non-controlling
interest
|
(381)
|
1,230
|
4,930
|
(6,605)
|
|
(2,275)
|
2,872
|
16,653
|
(28,931)
|
|
|
|
|
|
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Earnings (loss) per
share
|
(0.02)
|
0.01
|
0.10
|
(0.19)
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The full set of financial statements and accompanying MD&A
are posted on Sedar.com.
Exploration Update:
During the quarter exploration work consisted of continuous
compilation work in the area of the open pits. In addition,
the Company initiated a localized diamond drill program designed to
provide an extension to the western end of Pit 2.
Exploration – Generative
The exploration team continues to investigate and evaluate early
and advanced-exploration properties as well as development
projects, which are located within the America's. Additional
geophysics and a possible diamond drilling program is planned for
the Fenton gold/zinc project in northern British Columbia later this year.
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, August 8,
2016 at 7:30 am (Pacific Daylight Time) for management to discuss
the second 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
To participate in the webcast live via your computer
go
to:
http://event.on24.com/r.htm?e=1224652&s=1&k=19F8DDE9C7DEEBDD11DCD4E6D6EADD1E
Replay call
information
Toronto and
international: 416-764-8677, passcode
976881
North America
(toll-free):
888-390-0541, passcode
976881
The conference call replay will be available from
10:30 am (PDT) on August 8, 2016, until 11:59 pm PST on August 15,
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.
_______________________
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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.
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SOURCE Copper Mountain Mining Corporation