Web Site: www.CuMtn.com
TSX:CUM

VANCOUVER, Aug. 10, 2015 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces second quarter revenues of $56.8 million after pricing adjustments and treatment charges from the sale of 18.4 million pounds of copper, 6,300 ounces of gold, and 66,700 ounces of silver. Total cash costs for the quarter ended June 30, 2015 was US$1.81 per pound of copper sold, net of precious metals credits.

Jim O'Rourke, President and CEO of Copper Mountain, remarked "Cost reductions and increased production are our continued focus. The disciplined dedication to our goals is reflected in the increased operating performance and the reduced costs achieved in the second quarter. This continuing drive for improvements at the mine is positioning the Company well to weather current global market conditions.  In addition, Copper Mountain's bottom line continues to benefit from a weaker Canadian dollar relative to the U.S. dollar, as approximately 88% of the Company's operating costs have a Canadian dollar cost basis".

Mr. O'Rourke continued, "Copper Mountain Mining generated positive free cash flow during the second quarter, helped by increased productivity and lower costs. In keeping with this trend, no major capital expenditures are planned for the second half of 2015 and production improvements are expected to continue through to the end of the year". 

During the quarter, the company completed three shipments of concentrate containing approximately 18.4 million pounds of copper, 6,300 ounces of gold, and 66,700 ounces of silver to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $56.8 million, realizing a gross profit of $1.2 million.  The total cash cost of copper sold for the quarter ended June 30, 2015 were in-line with expectations at US$1.81 per pound of copper net of gold and silver by-product credits as a result of ongoing cost cutting measures taken at the mine site.

During the quarter, mining activities continued in the Pit 2 area where the majority of the ore will be mined from for the balance of 2015.  At the same time the Company continued with the Phase 3 pushback on the west side of Pit 3.  Copper head grade for the year is forecasted to be on average 0.33% copper or approximately 0.41% copper equivalent.  During the quarter a total of 14.2 million tonnes of material was mined, including 5.7 million tonnes of ore and 8.5 million tonnes of waste, realizing a strip ratio of 1.48.  The mining rate at the end of the period was in the range of 167,000 tpd moved.  As a result of cost cutting measures taken early in the year site cash costs were in-line with expectations at US$1.36 per pound of copper after gold and silver by-product credits. 

Mill throughput from the concentrator continued to improve month-over-month, averaging 35,600 tpd during the second quarter, which was an improvement of approximately 7% during the quarter as compared to the first quarter of 2015.  This is a milestone for the operation as it was the first time that the concentrator has exceeded design capacity of 35,000 tpd for an entire quarter.  This improvement continued into July 2015, as throughput averaged 39,100 tpd for the month, thus providing management with confidence that the targeted rate of 37,500 tpd is achievable on a consistent basis.  This increase in throughput is directly attributable to the installation of the secondary crusher and mine site management's ability to optimize the crushing and grinding circuit. 

During the quarter the mill processed a total of 3.2 million tonnes of ore at an average grade of 0.33% copper to produce 19.5 million pounds of copper, 7,800 ounces of gold, and 71,100 ounces of silver.  SAG Mill availability was 90.7% during the second quarter as a result of planned maintenance during the period.  Copper recovery averaged 82.4%, which was in-line with the Company's plans.

The following table sets out the major operating parameters for the mine for the three and six months ended June 30, 2015. 

Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:

The full set of financial statements and accompanying MD&A are posted on Sedar.com.

Exploration Update:
As part of efforts to minimize capital expenditures during the period of lower copper prices, exploration activities at the mine site during the quarter were limited to a continuation of geotechnical mapping and compilation of geological data.  In addition three dimensional computer assisted modelling of the dykes and other geological zones were carried out.  Planning and optimization of drill hole placement and orientation for deep drilling in the Pit 3 area was undertaken and integration of the recently completed magnetic survey inversion with deep penetration induced polarization data for the purposes of defining blind exploration targets was continued. 

During the quarter the Company issued an updated 43-101 report for the mine, including a ten year production forecast.  Over the next ten years it is anticipated that the mine grade will average 0.43%Cu equivalent grade.  Production rates will be set each year as part of the annual budgeting process.   

Upgrading of inferred resources to reserve status with additional drilling has been very successful and is the major goal of the long-term exploration plan. Discovery of new mineralized areas continues as a focus of the on-going exploration program; however, exploration activities will be sensitive to copper price.

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.

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 Excludes ore re-handle from stockpile
⁴ Tonnes per day
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