VANCOUVER, BC, April 26,
2022 /PRNewswire/ - Copper Mountain Mining
Corporation (TSX: CMMC) (ASX: C6C) (the "Company" or
"Copper Mountain") announces first quarter 2022 financial and
operating results. All currency is in Canadian dollars,
unless otherwise stated. All results are reported on a 100%
basis. The Company's Financial Statements and Management's
Discussion & Analysis ("MD&A") are available at
www.CuMtn.com and www.sedar.com.
Gil Clausen, Copper Mountain's
President and CEO, stated, "We managed through a very difficult
first quarter, which was largely due to temporary impacts to
production and costs. Lower production was a result of
operating at reduced mill throughput and lower grade, as we
continued to run the secondary crusher at lower power draw due to
the damaged main shaft, resulting in low and very coarse feed to
the mill. This issue is now resolved. We installed a
new main shaft in early April and the secondary crusher is back at
full capacity. A spare shaft was also purchased for
delivery in August. With the newly commissioned third ball
mill operating, and the secondary crusher back on spec, we are
ramping up the milling circuit to full capacity of 45,000 tonnes
per day and expect to be at this level consistently through the
balance of 2022. Higher grade ore from Phase 4 of the Copper
Mountain Main Pit is planned for the second half of 2022 with the
newly developed North Pit providing the bulk of the feed through
Q2. The first quarter was an aberration due to a confluence
of adverse events, which are now behind us. We expect the
second quarter to improve from the first quarter and the second
half to be considerably stronger than the first half of the year.
However, we are increasing our all-in cost guidance for 2022 to
US$2.25 to US$2.75 per pound of copper to reflect Q1 2022
results and the inflationary pressures being experienced globally."
"We also had many positive achievements in the quarter, with
large strides in our sustainability efforts" added Mr. Clausen.
"The Company exceeded our 2021 sustainability targets of achieving
at least an "A" or "Yes" rating on each of the Mining Association
of Canada's Towards Sustainable
Mining protocols. The Trolley Assist project, which aims at
reducing carbon emissions at the Copper Mountain Mine by at least
30%, was successfully commissioned, and we wrapped-up our extensive
exploration program at the Copper Mountain Mine. Work is now
underway on updating the mineral reserve and mineral resource
estimate with a new life of mine plan, which will include an
expansion study. All of these are progressing on schedule for
mid-2022."
SUMMARY
- Production in Q1 2022 was 15.6 million pounds of copper
equivalent (13.2 million pounds of copper, 5,135 ounces of gold,
and 55,993 ounces of silver), 48% lower than Q1 2021, which was a
record production quarter, primarily driven by lower mill head
grade and lower throughput resulting from the damaged secondary
crusher.
- The secondary crusher's new main shaft was installed in early
April and the mill is ramping up to full capacity.
- Revenue for Q1 2022 was $93.9
million from the sale of 13.5 million pounds of copper,
5,076 ounces of gold, and 60,038 ounces of silver.
- C1 cash cost (1) per pound of copper produced in Q1
2022 was US$3.58, higher than Q1 2021
of US$1.15, primarily due to lower
copper production, temporary contractor maintenance expenses,
temporary contract crushing expenditures, and inflationary
pressures on costs, particularly diesel.
- All-in sustaining cost ("AISC") (1) per pound of
copper of US$4.45 and all-in cost
("AIC") (1) per pound of copper of US$5.08 was significantly higher compared to Q1
2021 largely driven by higher C1 cash cost, the lease expense and
capitalization of assembly costs for seven new Trolley Assist haul
trucks, the acquisition cost of new "MineSense" shovel grade
control systems and new haul road construction costs that will
greatly improve truck cycle times starting in Q2 2022.
- Net loss for Q1 2022 was $4.2
million, or ($0.03) on a
per-share basis.
- Cash flow from operations for Q1 2022 was $33.3 million, or $0.16 on a per-share basis(1).
- Cash, cash equivalents and restricted cash at the end of
March 31, 2022 was $159.2 million.
- Exceeded 2021 sustainability targets, achieving at least an "A"
or "Yes" rating on each of the Mining Association of Canada's Towards Sustainable Mining
protocols.
- Successfully commissioned the Trolley Assist project, which
targets reduction of carbon emissions at the Copper Mountain Mine
by at least 30%.
- Positive drilling results continued during the quarter at New
Ingerbelle, extending mineralization to the west, with the Company
completing the balance of the 2021 drill program in the
quarter.
- Entered into zero-cost collar options for 3.3 million pounds of
copper per month through 2022 with a floor price of US$4.00 per pound and an average ceiling price of
US$4.91 per pound.
|
(1)
|
The Company reports
the non-GAAP financial measures of C1 cash costs, AISC and AIC per
pound of copper produced and cash flow from operations per share to
manage and evaluate its operating performance. See
"Cautionary Note Regarding Non-GAAP Performance Measures" in this
press release.
|
SUMMARY OF OPERATING RESULTS
|
Copper Mountain Mine
(100% Basis)
|
Q1 2022
|
Q1 2021
|
|
Mine
|
|
|
|
Total tonnes mined
(000s)
|
12,230
|
15,372
|
|
Ore tonnes mined
(000s)
|
2,888
|
3,428
|
|
Waste tonnes
(000s)
|
9,342
|
11,944
|
|
Stripping
ratio
|
3.23
|
3.48
|
|
|
|
|
Mill
|
|
|
|
Tonnes milled
(000s)
|
2,968
|
3,430
|
|
Feed Grade
(Cu%)
|
0.25
|
0.42
|
|
Recovery (%)
|
82.0
|
80.2
|
|
Operating time
(%)
|
86.3
|
93.9
|
|
Tonnes milled
(TPD)
|
32,978
|
38,111
|
|
|
|
|
Production
|
|
|
|
Copper (000s
lb)
|
13,224
|
25,526
|
|
Gold (oz)
|
5,135
|
8,187
|
|
Silver (oz)
|
55,993
|
160,484
|
|
|
|
|
Sales
|
|
|
|
Copper (000s
lb)
|
13,487
|
27,501
|
|
Gold (oz)
|
5,076
|
8,553
|
|
Silver (oz)
|
60,038
|
161,657
|
|
|
|
|
C1 cash cost per pound
of copper produced (US$)(1)
|
3.58
|
1.15
|
|
AISC per pound of
copper produced (US$)(1)
|
4.45
|
1.46
|
|
AIC per pound of copper
produced (US$)(1)
|
5.08
|
1.71
|
|
|
|
|
Average realized copper
price (US$/lb)
|
4.54
|
3.90
|
|
(1)
|
The Company reports
the non-GAAP financial measures of C1 cash costs, AISC and AIC per
pound of copper produced to manage and evaluate its operating
performance. For further information, see "Cautionary Note
Regarding Non-GAAP Performance Measures" in this press
release.
|
Production
The Copper Mountain Mine produced 13.2 million pounds of copper,
5,135 ounces of gold, and 55,993 ounces of silver in Q1 2022, as
compared to Q1 2021, which was a record production quarter, of 25.5
million pounds of copper, 8,187 ounces of gold, and 160,484 ounces
of silver. Production was lower during the quarter due to
lower grades and reduced mill throughput as the Company continued
to run the secondary crusher at reduced rates due to the damaged
main shaft which occurred late in 2021. The Company has determined
the root cause of the damage and has since improved the systems to
prevent a recurrence. The main shaft was temporarily weld repaired
in December 2021, but the temporary
nature of the fix required the Company to reduce crushing power to
sustain operations, thereby increasing the crushed product size of
the ore feed going to the SAG mill. The coarser ore feed
resulted in low SAG throughput. A new main shaft was
installed in the first week of April
2022 at a cost of approximately $0.8
million and throughput rates have since returned to normal
operating levels. With the recently commissioned third ball
mill, the mill will be ramping up towards the full mill capacity of
45,000 tonnes per day this month, which will be a key driver to
increased production for the remainder of the year.
The mill processed a total of 3.0 million tonnes of ore during
the quarter as compared to 3.4 million tonnes in Q1 2021. The
average mill feed grade was 0.25% Cu during Q1 2022, as compared to
average feed grade of 0.42% Cu in Q1 2021. This was due to ore
being mined predominantly from the lower grade Phase 2 area for
most of the quarter. The Company plans on mining from the
higher-grade Phase 4 area of the Main Pit and the North Pit in the
second half of 2022, further contributing to higher production
levels in the second half of the year.
Copper recovery was 82.0% in Q1 2022 as compared to 80.2% in Q1
2021. Mill availability averaged 86.3% for Q1 2022 as compared to
93.9% in Q1 2021. Mill availability was lower in Q1 2022
principally due to the replacement of the SAG mill feed conveyor
belt during the quarter and additional mill downtime related to the
damaged secondary crusher. The SAG mill feed conveyor belt was
fully replaced for the first time since the start of
operations.
The Company continues to advance the plant improvement and
optimization projects currently underway at the mine. Both the
installation of additional cleaner circuit capacity to support
maximizing recovery on slower kinetic ore types and the
installation of additional filtration capacity are expected to be
completed during the first half of 2022. The expansion to the
rougher flotation circuit is planned to be completed in Q3
2022. With the completion of these projects, the replacement
of the new main shaft for the secondary crusher, which is now
complete, and as Copper Mountain begins to mine higher grade ore
from the Phase 4 area, production is expected to be considerably
higher in the second half of 2022.
Costs
C1 cash cost per pound of copper produced, net of precious metal
credits, for Q1 2022 was US$3.58, as
compared to US$1.15 in Q1 2021. The
variance in C1 cash costs for Q1 2022, as compared to Q1 2021, was
due to several items:
- Lower copper production of 48% due to lower mill feed grade and
reduced mill throughput.
- Temporary costs incurred in the quarter for mobile equipment
repairs and maintenance, portable crushing equipment to supplement
the secondary crusher and increased maintenance contractor support
required to assist with managing COVID-19 related workforce
absences and major conveyor belt rip repairs due to the significant
cold weather that occurred in late 2021 and early 2022. These
additional costs are not expected to recur through the remainder of
2022.
- To a lesser extent, costs increased due to inflationary
pressures on diesel, steel, and mill consumable costs with price
increases of 63%, 19%, and 10%, respectively.
- Lower precious metal credits resulting from lower gold and
silver production due to lower grades and reduced mill
throughput.
With production levels expected to increase throughout the
remainder of the year and an easing of the temporary operating
costs from Q1 2022, the Company anticipates C1 cash cost per pound
of copper to markedly improve for the remainder of 2022.
AISC per pound of copper produced for Q1 2022 was US$4.45, as compared to US$1.46 in Q1 2021. AISC carries forward
from C1 cash costs with the addition of $14.6 million in sustaining capital, lease, and
applicable administration expenditures in Q1 2022 as compared to
$10.1 million in Q1 2021. The
increase was primarily due to higher leasing costs of $3.9 million as compared to $2.7 million in Q1 2021 as well as sustaining
capital of $10.2 million in Q1 2022
as compared to sustaining capital of $6.4
million in Q1 2021. The higher leasing costs were
principally due to the purchase of new Trolley Assist haul
trucks. Sustaining capital costs for Q1 2022 were higher than
Q1 2021 mainly due to $2.9 million of
expenditures to improve grade control systems and new road
construction that will eliminate traffic interference with haulage
trucks on the main waste haul road, thereby improving productivity
through reducing haul truck cycle times and delays. These haul
truck productivity improvement capital expenditures are expected to
be completed in Q2 2022. Sustaining capital also continues to
include costs associated with the mine's environmental water
management projects. The mine water management projects have been
substantially advanced and are expected to be fully completed in Q3
2022.
AIC per pound of copper produced for Q1 2022 was US$5.08, as compared to US$1.71 in Q1 2021. AIC carries forward
from AISC with the addition of $10.5
million in deferred stripping as compared to $8.0 million deferred stripping in Q1 2021.
Deferred stripping costs in Q1 2022 were from regular development
activities as the Company continued to advance development of the
Phase 4 pushback of the Copper Mountain Main Pit.
SUMMARY OF FINANCIAL RESULTS
|
Results and Highlights (100%)
|
|
Three months
ended
March 31,
|
|
(In thousands of CDN$,
except for per share amounts)
|
|
|
2022$
|
2021$
|
|
Revenue
|
|
|
93,858
|
162,207
|
|
Gross profit
|
|
|
18,576
|
96,280
|
|
Gross profit before
depreciation(1)
|
|
|
24,051
|
103,966
|
|
Net income
(loss)
|
|
|
(4,162)
|
52,118
|
|
Income
(loss) per share – basic
|
|
|
(0.03)
|
$0.18
|
|
Adjusted earnings
(loss)(1)
|
|
|
(9,277)
|
33,419
|
|
Adjusted
earnings (loss) per share – basic (1)
|
|
|
(0.04)
|
$0.16
|
|
EBITDA(1)
|
|
|
11,256
|
95,985
|
|
Adjusted
EBITDA(1)
|
|
|
6,141
|
77,286
|
|
Cash flow from
operations
|
|
|
33,314
|
79,593
|
|
Cash flow
from operations per share – basic (1)
|
|
|
0.16
|
0.38
|
|
Cash and cash
equivalents – end of period
|
|
|
143,501
|
137,065
|
|
|
|
|
|
|
|
(1)
|
The Company reports
the non-GAAP financial measures of gross profit before
depreciation, adjusted earnings, adjusted earnings per share,
EBITDA and adjusted EBITDA to manage and evaluate its operating
performance. For further information, see "Cautionary Note
Regarding Non-GAAP Performance Measures".
|
In Q1 2022, revenue was $93.9
million, net of pricing adjustments and treatment charges,
compared to $162.2 million in Q1
2021. Revenue in Q1 2022 is based on the sale of 13.5 million
pounds of copper, 5,076 ounces of gold, and 60,038 ounces of
silver. This compares to 27.5 million pounds of copper, 8,553
ounces of gold and 161,657 ounces of silver sold in Q1 2021. The
decrease in revenue was due to lower quantities of all metal sold
and a smaller positive mark to market and final adjustment on
concentrate sales of $7.1 million as
compared to a positive mark to market and final adjustment of
$15.5 million for Q1 2021. Lower
copper production and sales in the quarter was due to lower grades
and reduced mill throughput as the Company continued to run the
secondary crusher at reduced rates due to the damaged main
shaft.
Cost of sales in Q1 2022 was $75.3
million as compared to $65.9
million for Q1 2021. The increase in cost of sales can
largely be attributed to the increase in scheduled repairs and
maintenance during the quarter as well as additional costs incurred
for portable crushing equipment to supplement the secondary crusher
reduced capacity during the quarter as a result of the damaged main
shaft. Cost of sales also increased as a result of higher fuel and
steel costs, increased maintenance contractor support required to
assist with managing COVID-19 related workforce absences and the
significant cold weather that occurred in late 2021 and early
2022.
The Company generated gross profit of $18.6 million in Q1 2022 compared to a gross
profit of $96.3 million in Q1 2021.
The Company reported a net loss of $4.2
million for Q1 2022 compared to net income of $52.1 million in Q1 2021. The variance in net
income for Q1 2022, as compared to Q1 2021, was due to several
items, including:
- Lower revenue in Q1 2022 due to less pounds of copper sold as
compared to Q1 2021.
- Q1 2022 included a $7.1 million
positive mark to market and final adjustment from provisional
pricing on concentrate sales, as compared to an $15.5 million positive mark to market and final
adjustment from provisional pricing on concentrate sales for Q1
2021.
- Higher cost of sales in Q1 2022 due to scheduled maintenance
and increased operating costs as compared to Q1
2021.
On an adjusted basis, the Company recorded a net loss of
$9.3 million in Q1 2022, or
$0.04 per share, compared to net
earnings of $33.4 million in Q1 2021,
or $0.16 per share.
PROJECT DEVELOPMENT UPDATE
Copper Mountain Mine, Canada
The Company successfully installed and commissioned Ball Mill 3
in the second half of 2021. The Ball Mill 3 Expansion Project was
designed to increase mill throughput to 45,000 tonnes per day from
40,000 tonnes per day and improve copper recovery due to achieving
a finer ore grind. Ball Mill 3 operated well during the
quarter.
The plant optimization and improvement projects at the mine site
continue to progress. The cleaner column expansion project and the
filter press expansion are on track to be completed by the end of
Q2 2022. The rougher expansion project is in progress and expected
to be completed in Q3 2022. Phase 1 of the Trolley Assist project
was completed during the first quarter and on April 4, 2022 the Company announced the
successful commissioning of the one kilometer trolley-assist haul
ramp and seven pantograph-equipped electric haul
trucks.
Eva Copper Project, Australia
The Company announced updated economics for the Eva Copper
Project, including capital and operating costs, at the end of 2021.
The Eva Copper Project's economics remain strong and have improved
compared to the May 2020 Feasibility
Study. The Company also formally approved the construction plan for
the Eva Copper Project subject to advancing detailed engineering to
80%, obtaining committed project financing and the lifting of
COVID-19 restrictions in Queensland,
Australia. The Company continues to advance project
financing discussions and has engaged Ausenco Projects Australia
Pty Ltd to complete detailed engineering on the project.
Exploration Update
Canada
The drilling program, which was initiated in March 2021 with the objective of expanding
resources and reserves at the Copper Mountain Main Pit, North Pit
and New Ingerbelle, was completed in March
2022. The program consisted of a total of 38,000 metres of
diamond drilling. Results were positive with significant copper
intersections below the current reserve pits.
In January, the Company announced continued positive results
from drilling at New Ingerbelle, extending mineralization at depth
and to the west. For details, please see the Company's January 20, 2022 and September 9, 2021 press releases. The Company
plans to incorporate the results of the 2021-2022 drilling program
into an updated mineral reserves and mineral resources estimate,
along with a new "Life of Mine Plan"
based on an expansion, which is expected to be published in
mid-2022.
Australia
In late 2021, the Company completed an exploration program on
its Cameron Copper Project, located approximately 40 kilometres
south of its Eva Copper Project. The program was designed to
discover additional copper, copper-gold or gold deposits. The
program, which consisted of detailed geophysical, geochemical, and
geological surveys followed by drill testing, produced encouraging
results with multiple mineralized zones identified.
A total of 60 reverse circulation holes (6,997 metres of
drilling) and 7 diamond drill holes (1,341 metres of drilling) were
completed on a series of targets at Cameron (C1, C1 South, C2, C3, C6, and C24).
The drill program encountered intercepts of high-grade
mineralization, within long, low-grade mineralized envelopes, with
lateral continuity between intercepts of up to 1 kilometre. For
drill hole results please see Copper Mountain's October 12, 2021 press release. Analysis
and interpretation of the drilling results is ongoing and will
guide further target definition and drilling in 2022.
OUTLOOK
As a result of the production results in Q1 2022, the Company
expects to achieve the lower end of its annual guidance range of 80
to 90 million pounds of copper. The Company expects production in
the second half of the year to be stronger than the first half of
2022 as throughput rates reach the increased capacity of 45,000
tonnes per day following the secondary crusher repair in
April 2022 and as the Company mines
higher grade ore from Phase 4 of the Copper Mountain Main Pit and
North Pit. The second quarter of 2022 is expected to be a
transition quarter as production and costs begin to improve from
the first quarter, with the second half of the year expected to be
significantly stronger.
The Company is increasing its AIC per pound of copper cost
guidance for 2022 to be between US$2.25 to US$2.75
as a result of the higher-than-planned AIC in Q1 2022 and
inflationary pressures. As production is expected to increase
throughout 2022, and as many cost items in Q1 2022 were
non-recurring in nature, the Company expects AIC to improve for the
remainder of 2022.
Please see "Cautionary Note Regarding Forward-Looking
Statements."
Q1 2022 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND
WEBCAST
Copper Mountain will host a conference call on Tuesday, April 26, 2022 at 7:30 am (Pacific Time) for senior management to
discuss first quarter 2022 results.
Dial-in information:
Toronto and international: 1 (416) 764
8650
North America (toll-free): 1 (888)
664 6383
Webcast:
https://produceredition.webcasts.com/starthere.jsp?ei=1540119&tp_key=3297d7e2a6
Replay information:
Toronto and international: 1 (416) 764 8677,
Passcode: 910085#
North America (toll-free): 1 (888)
390 0541, Passcode: 910085#
The conference call replay will be available until 8:59 pm (Pacific Time) on May 3, 2022. An archive of the audio
webcast will also be available on the company's website at
http://www.cumtn.com.
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 Copper Mountain Mine currently
produces approximately 100 million pounds of copper equivalent per
year. Copper Mountain also has the 100% owned development-stage Eva
Copper Project, which is expected to add approximately 100 million
pounds of copper annually, in Queensland,
Australia, and an extensive 2,100 km2 highly
prospective land package in the Mount Isa area. Copper Mountain
trades on the Toronto Stock Exchange under the symbol "CMMC" and
Australian Stock Exchange under the symbol "C6C".
Additional information is available on the Company's web page at
www.CuMtn.com.
On behalf of the Board of
COPPER MOUNTAIN MINING CORPORATION
"Gil
Clausen"
Gil Clausen, P.Eng.
President and Chief Executive Officer
Cautionary Note Regarding Forward-Looking
Statements
This document may contain "forward looking
information" within the meaning of Canadian securities legislation
and "forward-looking statements" within the meaning of the United
States Private Securities Litigation Reform Act of 1995
(collectively, "forward-looking statements"). These forward-looking
statements are made as of the date of this document and Copper
Mountain does not intend, and does not assume any obligation, to
update these forward-looking statements, whether as a result of new
information, future events or otherwise, except as required under
applicable securities legislation.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
relate to future events or future performance and reflect our
expectations or beliefs regarding future events.
In certain circumstances, forward-looking statements can be
identified, but are not limited to, statements which use
terminology such as "plans", "expects", "estimates", "intends",
"anticipates", "believes", "forecasts", "guidance", scheduled",
"target" or variations of such words, or statements that certain
actions, events or results "may", "could", "would", "might",
"occur" or "be achieved" or the negative of these terms or
comparable terminology. In this document, certain forward-looking
statements are identified, including production and cost guidance,
anticipated production at the Copper Mountain Mine, expectations
regarding the impact of the COVID-19 pandemic on operations,
financial condition and prospects, anticipated metals prices and
the anticipated sensitivity of the Company's financial performance
to metals prices, the timing and results of the Company's
exploration and development programs, the timing of the Company's
plant improvement and optimization projects at the Copper Mountain
Mine, the timing of commissioning the first four Trolley Assist
haul trucks at the Copper Mountain Mine, the timing of the
Company's updated mineral reserves and mineral resources estimate
and new life of mine plan for the Copper Mountain Mine, the timing
for the completion of detailed engineering for the Eva Project, the
timing of studies, announcements, and analysis, events that may
affect its operations and development projects, anticipated cash
flows from operations and related liquidity requirements, the
anticipated effect of external factors on revenue, such as
commodity prices, estimation of mineral reserves and resources,
mine life projections, reclamation costs, economic outlook, the
impact of inflation, government regulation of mining operations,
and business and acquisition strategies. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
that could cause actual results, performance, achievements and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements include,
among others, the successful exploration of the Company's
properties in Canada and
Australia, market price, continued
availability of capital and financing and general economic, market
or business conditions, extreme weather events, material and labour
shortages, the reliability of the historical data referenced in
this document and risks set out in Copper Mountain's public
documents, including in each management's discussion and analysis,
filed on SEDAR at www.sedar.com. The potential effects of the
COVID-19 pandemic on Copper Mountain's business and operations are
unknown at this time, including Copper Mountain's ability to manage
challenges and restrictions arising from COVID-19 in the
communities in which Copper Mountain operates and its ability to
continue to safely operate and to safely return the business to
normal operations. The impact of COVID-19 is dependent on a number
of factors outside of the Company's control and knowledge,
including the effectiveness of the measures taken by public health
and governmental authorities to combat the spread of the disease,
global economic uncertainties and outlook due to the disease, and
the evolving restrictions relating to mining activities and to
travel in certain jurisdictions in which Copper Mountain operates.
Although Copper Mountain has attempted to identify important
factors that could cause the Company's actual results, performance,
achievements and opportunities to differ materially from those
described in its forward looking statements, there may be other
factors that cause the Company's results, performance, achievements
and opportunities not to be as anticipated, estimated or intended.
While the Company believes that the information and assumptions
used in preparing the forward-looking statements are reasonable,
undue reliance should not be placed on these statements, which only
apply as of the date of this news release, and no assurance can be
given that such events will occur in the disclosed time frames or
at all. Accordingly, readers should not place undue reliance on the
Company's forward-looking statements.
Cautionary Note Regarding Non-GAAP Performance
Measures
This document includes certain non-GAAP performance
measures that do not have a standardized meaning prescribed by
International Financial Reporting Standards ("IFRS"). These
measures may differ from those used and may not be comparable to
such measures as reported by other issuers. The Company
believes that these measures are commonly used by certain
investors, in conjunction with conventional IFRS measures, to
enhance their understanding of the Company's performance.
These performance measures are intended to provide additional
information and should not be considered in isolation or as a
substitute for measures of performance prepared in accordance with
IFRS. These measures have been derived from the Company's financial
statements and applied on a consistent basis. The calculation
and an explanation of these measures is provided in the Company's
MD&A and such measures should be read in conjunction with the
Company's financial statements.
Copper Mountain Mining Corporation
Condensed
Consolidated Statements of Financial Position
(In
thousands of Canadian dollars)
|
March 31, 2022
$
|
December 31, 2021
$
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current assets
|
|
|
|
Cash and cash
equivalents
|
143,501
|
171,902
|
|
Restricted
cash
|
15,733
|
6,512
|
|
Accounts receivable and
prepaid expenses
|
30,342
|
31,624
|
|
Inventory
|
32,542
|
32,635
|
|
|
|
|
222,118
|
242,673
|
|
|
|
|
Reclamation bonds and security
deposits
|
4,832
|
5,783
|
|
Property, plant and equipment
|
754,891
|
710,583
|
|
Low grade
stockpile
|
64,879
|
64,879
|
|
|
|
|
1,046,720
|
1,023,918
|
|
Liabilities
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
Accounts payable and
accrued liabilities
|
83,275
|
60,482
|
|
Current portion of
lease liabilities
|
11,768
|
10,403
|
|
Current portion of
long-term debt
|
12,496
|
12,678
|
|
Other financial
liabilities
|
5,115
|
-
|
|
Taxes
payable
|
2,015
|
2,143
|
|
114,669
|
85,706
|
|
|
|
|
Provisions and other
liabilities
|
26,350
|
23,961
|
|
Lease liabilities
|
46,392
|
50,669
|
|
Long-term debt
|
281,590
|
284,829
|
|
Deferred tax liability
|
100,721
|
99,314
|
|
569,722
|
544,479
|
|
|
|
|
Equity
Attributable to shareholders of the
Company:
|
|
|
|
|
|
|
Share capital
|
289,172
|
287,724
|
|
Contributed surplus
|
18,522
|
18,973
|
|
Accumulated other comprehensive
loss
|
(3,205)
|
(3,929)
|
|
Retained earnings
|
62,638
|
68,940
|
|
367,127
|
371,708
|
|
Non-controlling interest
|
109,871
|
107,731
|
|
Total equity
|
476,998
|
479,439
|
|
1,046,720
|
1,023,918
|
Copper Mountain Mining Corporation
Condensed
Consolidated Statements of Income and Comprehensive
Income
(In thousands of Canadian dollars, except for
number of and earnings per share)
|
2022
$
|
2021
$
|
|
Revenue
|
93,858
|
162,207
|
|
Cost of
sales
|
(75,282)
|
(65,927)
|
|
Gross
profit
|
18,576
|
96,280
|
|
|
|
|
Other income and
expenses
|
|
|
|
General
and administration
|
(6,892)
|
(5,268)
|
|
Share
based compensation
|
(3,959)
|
(5,959)
|
|
Operating
income
|
7,725
|
85,053
|
|
|
|
|
Finance
income
|
284
|
18
|
|
Finance
expense
|
(8,198)
|
(2,931)
|
|
Foreign exchange
gain
|
3,171
|
3,246
|
|
Unrealized loss on
derivatives
|
(5,115)
|
-
|
|
|
|
|
(Loss) income before tax
|
(2,133)
|
85,386
|
|
|
|
|
Current tax
expense
|
(621)
|
(1,857)
|
|
Deferred income tax
(expense) recovery
|
(1,408)
|
(31,411)
|
|
Net (loss)
income
|
(4,162)
|
52,118
|
|
|
|
|
Other comprehensive
loss
|
|
|
|
Foreign currency
translation adjustment
|
724
|
(1,161)
|
|
|
|
|
Comprehensive (loss)
income
|
(3,438)
|
50,957
|
|
|
|
|
Net (loss) income attributable
to:
|
|
|
|
Shareholders of the Company
|
(6,302)
|
36,652
|
|
Non-controlling interest
|
2,140
|
15,466
|
|
(4,162)
|
52,118
|
|
Income per share:
|
|
|
|
Basic
|
$(0.03)
|
$0.18
|
|
Diluted
|
$(0.03)
|
$0.17
|
|
|
|
|
Weighted average shares outstanding,
basic
|
210,767,083
|
208,548,526
|
|
|
|
|
Weighted average shares outstanding,
diluted
|
210,767,083
|
218,579,418
|
|
|
|
|
Shares outstanding at end of the
period
|
211,250,049
|
208,760,399
|
Copper Mountain Mining Corporation
Condensed
Consolidated Statements of Cash Flows
(In thousands of
Canadian dollars)
|
2022
$
|
2021
$
|
|
Cash flows from operating
activities
|
|
|
|
Net (loss) income for
the period
|
(4,162)
|
52,118
|
|
Adjustments
for:
|
|
|
|
Depreciation
|
5,646
|
7,784
|
|
Unrealized
foreign exchange gain
|
(2,562)
|
(1,944)
|
|
Unrealized loss
on derivatives
|
5,115
|
-
|
|
Deferred income
tax expense
|
1,408
|
31,411
|
|
Finance
expense
|
8,198
|
2,931
|
|
Share based
compensation
|
3,959
|
5,959
|
|
17,602
|
98,259
|
|
Net
changes in non-cash working capital items
|
15,712
|
(18,666)
|
|
Net cash provided by
operating activities
|
33,314
|
79,593
|
|
|
|
|
Cash flows from investing
activities
|
|
|
|
Deferred stripping
activities
|
(10,469)
|
(8,041)
|
|
Development of
property, plant and equipment
|
(37,646)
|
(15,735)
|
|
Reclamation
bonds
|
953
|
(249)
|
|
Net cash used in
investing activities
|
(47,162)
|
(24,025)
|
|
|
|
|
Cash flows from financing
activities
|
|
|
|
Common shares issued on
exercise of options
|
928
|
490
|
|
Contributions from
non-controlling interest
|
-
|
20,393
|
|
Loan principal
repaid
|
-
|
(20,120)
|
|
Restricted
cash
|
(8,964)
|
-
|
|
Interest
paid
|
(1,008)
|
(1,067)
|
|
Finance lease
payments
|
(3,872)
|
(2,705)
|
|
Net cash used in
financing activities
|
(12,916)
|
(3,009)
|
|
|
|
|
Effect of foreign exchange rate changes on cash and
cash equivalents
|
(1,637)
|
(1,065)
|
|
|
|
|
(Decrease) increase in cash and cash
equivalents
|
(28,401)
|
51,494
|
|
|
|
|
Cash and cash equivalents - Beginning of
period
|
171,902
|
85,571
|
|
|
|
|
Cash and cash equivalents - End of
period
|
143,501
|
137,065
|
|
|
|
|
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SOURCE Copper Mountain Mining Corporation