Web Site: www.CuMtn.com
TSX: CUM
VANCOUVER, Nov. 7, 2016 /CNW/ - Copper Mountain Mining
Corporation (TSX: CUM) (the "Company" or "Copper
Mountain") announces third quarter revenues of $72.2 million after pricing adjustments and
treatment charges from the sale of 29.5 million pounds of copper
equivalent (including 23.5 million pounds of copper, 8,600 ounces
of gold, and 75,700 ounces of silver). Total cash cost for
the quarter ended September 30, 2016
was US$1.45 per pound of copper sold,
net of precious metals credits and the Company ended the quarter
with $25 million in cash.
Highlights (10%
Basis)
|
- Copper, gold and silver production for the third
quarter of 2016 at Copper Mountain Mine was 22 million pounds of
copper, 8,200 ounces of gold and 81,500 ounces of silver.
- Revenue for the period was $72.2 million, from the sale
of 23.5 million pounds of copper, 8,600 ounces of gold, and 75,700
ounces of silver, net of pricing adjustments.
- Cash flow from operations for the quarter was $15.9
million.
- Cash balance at the quarter end was $25 million, an
increase of $20 million from June 30, 2016
- Adjusted EBITDA was $16.6 million for the quarter.
- Site cash costs for the 2016 third quarter were US$0.97
per pound of copper produced net of precious metal credits.
- Total cash costs for the quarter were US$1.45 per pound
of copper sold net of precious metal credits and after all off-site
charges.
- Realized prices on metal sales in the quarter were
US$2.15 per pound of copper, US$1,337 per ounce of gold and
US$19.54 per ounce of silver.
|
Jim O'Rourke, President and CEO
of Copper Mountain, remarked "During the third quarter of 2016,
Copper Mountain achieved new production records at the mine, with
Mill throughput averaging 39,980 tpd during the quarter. The mine
continues to focus on cost controls and production
efficiencies. Total cash costs for the quarter decreased 16%
to US$1.45 per pound of copper sold
net of precious metal credits from US1.72, Q3 2015 total cash
costs. Open pit mining averaged 173,100 tonnes of material per day
during the third quarter, bringing the year to date average to
187,200 tonnes of material per day, 7% ahead of plan."
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 $41
million of capital resources in the form of $25 million in cash and cash equivalents,
$11 million in concentrate sales
receivables, and $5.0 million of
concentrate inventory waiting at the port to be shipped. We will
continue to focus on cost control and operational improvements to
further strengthen the Company's balance sheet."
Summary Financial
Results
|
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September 30,
|
(in thousands CDN$,
except for cash cost data in US$)
|
2016
$
|
2015
$
|
2016
$
|
2015
$
|
|
|
|
|
|
Revenues
|
72,195
|
63,702
|
193,473
|
191,969
|
Gross profit
(loss)
|
4,188
|
(2,085)
|
10,069
|
5,818
|
Net income (loss)
and comprehensive income (loss)
|
(7,937)
|
(28,121)
|
8,716
|
(57,052)
|
Adjusted earnings
(loss)1
|
(1,332)
|
2,035
|
(12,568)
|
9,824
|
Adjusted earnings
(loss) per share2
|
(0.01)
|
0.02
|
(0.10)
|
0.08
|
EBITDA3
|
10,006
|
(15,472)
|
57,090
|
(18,327)
|
Adjusted
EBITDA
|
16,611
|
14,684
|
35,806
|
48,549
|
Cash flow from
operating activities
|
15,862
|
4,774
|
24,419
|
18,131
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
24,734
|
18,478
|
|
|
|
|
|
Equity
|
|
|
192,337
|
222,529
|
|
|
|
|
|
Copper produced
(000's lbs)
|
22,000
|
20,400
|
62,100
|
58,200
|
Gold produced
(oz)
|
8,200
|
6,300
|
23,780
|
21,900
|
Silver produced
(oz)
|
81,500
|
64,900
|
220,800
|
216,300
|
|
|
|
|
|
Copper sold (000's
lbs)
|
23,500
|
21,900
|
61,700
|
61,800
|
Gold sold
(oz)
|
8,600
|
7,800
|
22,700
|
21,700
|
Silver sold
(oz)
|
75,700
|
65,300
|
200,600
|
224,700
|
Site cash costs
per pound of copper produced
(net of gold,
silver credits) (US$)
|
0.97
|
1.21
|
1.06
|
1.26
|
Total cash costs
per pound of copper sold
(net of gold,
silver credits) (US$)
|
1.45
|
1.72
|
1.49
|
1.76
|
Realized Copper
Price (US$)
|
2.15
|
2.39
|
2.13
|
2.57
|
|
|
|
|
|
______________________________
|
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 by dividing the total adjusted earnings by the weighted
average number of shares outstanding under the basic
method.
|
3 Earnings
before interest, taxes, depreciation and amortization. Refer to the
Non-GAAP Performance measures section of this MD&A.
|
Copper Mountain Mine
During the quarter, the Company completed a total of three
shipments of copper concentrate containing approximately 23.5
million pounds of copper, 8,600 ounces of gold, and 75,700 ounces
of silver which generated $72.2
million in revenue net of treatment and refining charges and
pricing adjustments. Site cash costs were US$0.97 per pound of copper produced and total
cash costs were US$1.45 per pound
sold, net of precious metal credits for the three months ended
September 30, 2016; compared to site
cash costs of US$1.21 per pound of
copper produced and total cash costs of US$1.72 per pound of copper sold, net of precious
metal credits for the three months ended September 30, 2015. The increase in revenue is a
result of stronger sales volumes as compared to the same period
last year and a higher foreign exchange rate for the United States dollar. Revenue was
partially offset by a lower copper price realized during the
quarter.
Mining activities continued from the Pit 2, Saddle and Virginia
Pit areas during the quarter. A total of 15.9 million tonnes of
material was mined, including 5.9 million tonnes of ore and 10
million tonnes of waste, resulting in a strip ratio of 1.68 to 1.
High equipment mechanical availability was maintained during the
quarter which helped contribute to the above average mining rates
achieved during the quarter. Mining of the Virginia Pit has
now been completed.
During the quarter the mill processed a total of 3.7 million
tonnes of ore grading 0.33% copper to produce 22 million pounds of
copper, 8,200 ounces of gold, and 81,500 ounces of silver.
Mill recoveries were 83.0% for the quarter.
Mill operating time during the quarter averaged 92.2%. The
mill achieved an average throughput rate of 39,980 tpd during the
quarter. The Company currently has 432 operating employees
engaged at the mine site.
The following table sets out the major operating parameters for
the mine for the three and nine months ended September 30, 2016.
|
|
|
Mine Production
Information
|
Three months
ended
September
30,
|
Nine months
ended
September 30,
|
Copper Mountain Mine
(100% Basis)
|
2016
$
|
2015
$
|
2016
$
|
2015
$
|
|
|
|
|
|
Mine:
|
|
|
|
|
|
Total tonnes mined
(000's4)
|
15,920
|
14,708
|
51,303
|
43,607
|
|
Ore tonnes mined
(000's)
|
5,949
|
5,381
|
17,348
|
16,734
|
|
Waste tonnes
(000's)
|
9,972
|
9,327
|
33,955
|
26,874
|
|
Stripping
ratio
|
1.68
|
1.73
|
1.96
|
1.61
|
|
|
|
|
|
Mill:
|
|
|
|
|
|
Tonnes milled
(000's)
|
3,678
|
3,437
|
10,447
|
9,671
|
|
Feed Grade
(Cu%)
|
0.33
|
0.33
|
0.33
|
0.33
|
|
Recovery
(%)
|
82.9
|
82.4
|
82.4
|
81.8
|
|
Operating time
(%)
|
92.2
|
93.2
|
91.6
|
92.4
|
|
Tonnes milled
(TPD5)
|
39,980
|
37,345
|
38,100
|
35,402
|
|
|
|
|
|
Production:
|
|
|
|
|
|
Copper production
(000's lbs)
|
22,000
|
20,400
|
62,100
|
58,200
|
|
Gold production
(oz)
|
8,200
|
6,300
|
23,780
|
21,900
|
|
Silver production
(oz)
|
81,500
|
64,900
|
220,800
|
216,300
|
|
|
|
|
|
Site cash costs per
pound of copper produced (net
of precious metal credits) (US$)
|
0.97
|
1.21
|
1.06
|
1.26
|
Total cash costs per
pound of copper sold (net of
precious metal credits) (US$)
|
1.45
|
1.72
|
1.49
|
1.76
|
|
|
|
|
|
_________________________________
|
4 Excludes
ore re-handle from stockpile
|
5 Tonnes
per day
|
|
Exploration – Mine Site
A 5,000 meter drill program was completed in the third
quarter. The drill program was designed to convert inferred
resources into measured and indicated status on the western end of
Pit 2. The program was successful in converting blocks,
increasing grade, lowering strip ratio, and extending
mineralization further to the west. Redesign of the open pit
in the newly drilled area is scheduled for the fourth quarter and
will result in an increase to the reserve base.
Exploration – Generative
A 570 line-km GEOTECH helicopter-borne Z-TEM survey was
undertaken and completed over the Fenton project area as well as a
number of other company owned properties in the region.
Results of the survey will help define target areas for further
drill testing of the Fenton property, where previous exploration
and preliminary drilling have identified large areas of intense
alteration with significant enrichment of gold, silver, and zinc
within a felsic flow-dome complex. The survey will also help
evaluate the exploration potential of our other early stage
properties in the region, in conjunction with recently completed
geochemical programs. The targets on these properties range
from large, bulk-tonnage gold-silver deposits to more compact,
higher-grade polymetallic deposits.
Listed below is a summarized balance sheet and income statement
as well as details for our conference call schedule:
Summarized Balance
Sheet
|
(thousands of CAD
$)
|
|
|
|
|
September
30,
2016
$
|
December
31,
2015
$
|
Assets
|
|
|
Cash
|
24,734
|
12,190
|
Accounts Receivable
and prepaids
|
16,461
|
11,990
|
Inventory
|
45,498
|
44,882
|
Property, plant and
equipment
|
479,562
|
519,750
|
Other
Assets
|
73,315
|
58,494
|
|
639,570
|
647,306
|
Liabilities
|
|
|
Accounts payable and
accrued liabilities
|
28,241
|
42,399
|
Current portion of
long-term debt
|
47,833
|
33,115
|
Other
|
22,472
|
8,913
|
Electrcity
deferral
|
12,021
|
-
|
Decommissioning and
restoration provision
|
7,154
|
7,787
|
Interest rate swap
liability
|
7,295
|
7,061
|
Long-term
debt
|
322,217
|
371,610
|
|
447,233
|
470,885
|
Equity
|
|
|
Share
capital
|
193,998
|
188,306
|
Contributed
surplus
|
14,668
|
12,929
|
Retained earnings
(deficit)
|
(75,754)
|
(81,379)
|
Non-controlling
interest
|
59,425
|
56,565
|
Total
equity
|
192,337
|
176,421
|
|
639,570
|
647,306
|
|
Summarized Income
Statement
|
(thousands of CAD
$)
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September 30,
|
|
2016
$
|
2015
$
|
2016
$
|
2015
$
|
Revenues
|
72,195
|
63,702
|
193,473
|
191,969
|
Cost of
sales6
|
(68,007)
|
(65,787)
|
(183,404)
|
(186,150)
|
Gross
profit
|
4,188
|
(2,085)
|
10,069
|
5,818
|
|
|
|
|
|
Other income and
expenses
|
|
|
|
|
General and
administration
|
(1,465)
|
(1,447)
|
(4,444)
|
(5,674)
|
Low grade stockpile
write-down
|
(2,020)
|
-
|
(6,239)
|
-
|
Share based
compensation
|
(180)
|
(236)
|
(626)
|
(819)
|
Operating
income
|
523
|
(3,768)
|
(1,240)
|
(675)
|
|
|
|
|
|
Finance
income
|
5
|
13
|
143
|
212
|
Finance
expense
|
(3,240)
|
(2,763)
|
(9,224)
|
(7,790)
|
Unrealized gain
(loss) on interest rate swap
|
649
|
(2,313)
|
(2,671)
|
(3,938)
|
Unrealized gain
(loss) on foreign exchange
|
(4,974)
|
(21,963)
|
22,930
|
(49,012)
|
Loss of sale on fixed
asset
|
(643)
|
-
|
(643)
|
-
|
(Loss) income
before tax
|
(7,680)
|
(30,794)
|
(9,295)
|
(61,203)
|
|
|
|
|
|
Current resource tax
expense
|
(257)
|
(121)
|
(579)
|
(588)
|
Deferred income and
resource tax recovery
|
-
|
2,794
|
-
|
4,739
|
Net income (loss)
and comprehensive income (loss) for
the period
|
(7,937)
|
(28,121)
|
8,716
|
(57,053)
|
|
|
|
|
|
Net income (loss)
and comprehensive income (loss)
attributable to:
|
|
|
|
|
Shareholders of the
company
|
(6,098)
|
(21,059)
|
5,625
|
(43,385)
|
Non-controlling
interest
|
(1,839)
|
(7,062)
|
3,091
|
(13,667)
|
|
(7,937)
|
(28,121)
|
8,716
|
(57,052)
|
|
|
|
|
|
Earnings (loss)
per share
|
(0.05)
|
(0.18)
|
0.05
|
(0.37)
|
|
|
|
|
|
The full set of financial statements and
accompanying MD&A are posted on Sedar.com.
|
______________________________
|
6 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.
|
|
2016 Guidance:
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.
|
A conference call and
audio webcast will be held on Monday, November 7, 2016 at 7:30 am
(PST) 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: (647) 427-7450
|
North America
(toll-free): (888)
231-8191
|
To participate in the
webcast live via your computer go to:
|
http://event.on24.com/r.htm?e=1253968&s=1&k=F303E13481194B0FF30E12A194626D94
|
|
Replay call
information
|
Toronto and
international: 416.849.0833,
passcode 72541674
|
North America
(toll-free): 1.855.859.2056,
passcode 72541674
|
|
The conference call
replay will be available from 10:30 am (PST) on November 7, 2016,
until 11:59 pm PST on November 15, 2016
|
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 statement.
SOURCE Copper Mountain Mining Corporation