Web Site: www.CuMtn.com
TSX:CUM
|
This release should be read with the unaudited
financial statements and management's discussion and analysis
available at www.cumtn.com and filed on www.sedar.com. Our
financial results are prepared in accordance with IFRS and
expressed in Canadian dollars, unless otherwise noted. Sales and
production volumes for the Company's 75%-owned Copper Mountain mine
are presented on a 100% basis unless otherwise
indicated.
|
VANCOUVER, Nov. 9, 2015 /CNW/ - Copper Mountain Mining
Corporation (TSX: CUM) (the "Company" or "Copper
Mountain") announces third quarter revenues of $63.7 million after pricing adjustments and
treatment charges from the sale of 21.9 million pounds of copper,
7,800 ounces of gold, and 65,300 ounces of silver. Total cash cost
for the quarter ended September 30,
2015 was US$1.72 per pound of
copper sold, net of precious metals credits.
|
Highlights (100
Basis)
|
|
- Copper, gold and
silver production for the third quarter of 2015 at Copper Mountain
Mine was 20.4 million pounds of copper, 6,300 ounces of gold and
64,900 ounces of silver, or 58.2 million pounds of copper, 21,900
ounces of gold and 216,300 ounces of silver for the nine months
ended September 30, 2015.
|
- Revenues for the
third quarter of 2015 were $63.7 million from the sale of 21.9
million pounds of copper, 7,800 ounces of gold, and 65,300 ounces
of silver, net of pricing adjustments, bringing nine month revenues
to $192 million from the sale of 61.8 million pounds of copper,
21,700 ounces of gold, and 224,700 ounces of silver, net of pricing
adjustments.
|
- Adjusted EBITDA was
$14.7 million for the quarter; and $48.5 million for the nine
months ended September 30, 2015.
|
- Adjusted earnings
were $2.0 million for the quarter; and $9.8 million for the nine
months ended September 30, 2015.
|
- Cash flow from
operations was $4.7 million for the quarter; and $18.1 million for
the nine months ended September 30, 2015.
|
- Cash on hand at the
end of the quarter was $18.5 million.
|
- Mine production
continued at a mining rate of 160,000 tpd moved during the
quarter.
|
- SAG mill achieved
an all-time monthly throughput record of 39,100 tpd during the
month of July and averaged 37,400 tpd during the
quarter.
|
- Site cash costs for
the quarter were US$1.21 per pound of copper produced net of
precious metal credits, a reduction of 11% over Q2 site cash
costs.
|
- Total cash costs
for the quarter were in-line with expectations at US$1.72 per pound
of copper sold net of precious metal credits and after all off-site
charges, a reduction of 5% over Q2 total cash costs.
|
- Realized prices on
metal sales for Q3 2015 were US$2.39 per pound of copper, US$1,118
per ounce of gold and US$14.70 per ounce of silver.
|
Jim O'Rourke, President and CEO
of Copper Mountain, remarked "We are very pleased to see
another consecutive quarter of mill throughput improvements that
have been made possible by the addition of secondary
crushing. During the quarter the mill achieved a record
quarterly average throughput of 37,400 tpd, 7% above our design
capacity of 35,000 tpd. The 39,100 tpd average mill throughput
achieved in July provides management encouragement for further
improvements. We continue to focus on maximizing production while
minimizing all costs. Recent modifications have provided
further gains and we are confident these gains are
sustainable."
Mr. O'Rourke continued, "Copper
Mountain Mining generated positive free cash flow during the third
quarter. In keeping with this trend, no major capital
expenditures are planned for balance of 2015 and production
improvements are expected to continue through to the end of the
year. Mine plans are continuously being reviewed and optimized to
best address current market conditions."
|
|
|
Summary Financial
Results
|
|
|
|
|
|
|
|
|
|
Three months
ended
September
30,
|
Nine months
ended
September
30,
|
(CDN$, except for
cash cost data in US$)
|
2015
$
|
2014
$
|
2015
$
|
2014
$
|
|
|
|
|
|
Revenues
|
63,701,608
|
82,546,359
|
191,968,622
|
211,762,279
|
Gross profit
(loss)
|
(2,085,460)
|
18,826,834
|
5,818,290
|
30,315,546
|
Operating income
(loss)
|
(3,767,978)
|
16,715,400
|
(675,320)
|
22,513,131
|
Adjusted earnings
1
|
2,034,651
|
18,178,961
|
9,823,532
|
23,109,580
|
Adjusted earnings
per share2
|
0.02
|
0.15
|
0.08
|
0.20
|
EBITDA
|
(15,472,385)
|
12,253,673
|
(18,327,092)
|
32,335,360
|
Adjusted
EBITDA
|
14,683,665
|
34,406,602
|
48,549,098
|
61,730,848
|
Cash Flow from
operating activities before working capital items
|
4,773,700
|
17,792,717
|
18,131,891
|
29,787,238
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
18,477,393
|
17,831,158
|
Working
capital
|
|
|
6,606,786
|
20,802,619
|
Equity
|
|
|
222,529,151
|
295,884,130
|
|
|
|
|
|
Copper produced
(lbs)
|
20,400,000
|
21,682,000
|
58,200,000
|
60,647,000
|
Gold produced
(oz)
|
6,300
|
6,100
|
21,900
|
16,600
|
Silver produced
(oz)
|
64,900
|
124,100
|
216,300
|
342,600
|
|
|
|
|
|
Copper sold
(lbs)
|
21,900,000
|
25,300,000
|
61,800,000
|
63,100,000
|
Gold sold
(oz)
|
7,800
|
7,800
|
21,700
|
20,600
|
Silver sold
(oz)
|
65,300
|
133,800
|
224,700
|
327,400
|
Site cash costs
per pound of copper produced (net of gold, silver credits)
(US$)
|
1.21
|
1.19
|
1.26
|
1.48
|
Total cash costs
per pound of copper sold (net of gold, silver credits)
(US$)
|
1.72
|
1.73
|
1.76
|
2.00
|
|
|
|
|
|
Realized Copper
Price (US$)
|
2.39
|
3.17
|
2.57
|
3.15
|
During the quarter, the company completed four shipments of
concentrate containing approximately 21.9 million pounds of copper,
7,800 ounces of gold, and 65,300 ounces of silver to Japan for smelting and recorded revenues, net
of smelter charges and pricing adjustments, of $63.7 million. The total cash cost of
copper sold for the quarter ended September
30, 2015 was reduced to US$1.72 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 the Company continued with mining ore mainly
from the Pit #2 area where a majority of 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. During
the quarter the Company received approval from the BC Government to
incorporate the Virginia and
Oriole deposits into the mine plan. Mining from the
Virginia area has commenced with
overburden removal, while the Oriole deposit will be incorporated
into the mine plan once the Virginia pit is completed. Management is
now planning on first ore delivery to the concentrator from
Virginia in December as a result
of the delay in receiving the mine permit amendment that was
submitted to government last October. Both of these deposits
will provide small volumes of higher grade ore that will be blended
into the mill feed. Copper head grade for the year will
average about 0.33% copper or approximately 0.41% copper
equivalent. During the quarter a total of 14.7 million tonnes
of material was mined, including 5.4 million tonnes of ore and 9.3
million tonnes of waste for a strip ratio of 1.73:1. The
mining rate at the end of the period was in the range of 160,000
tonnes per day moved.
Mill throughput from the concentrator continued to improve
month-over-month, averaging 37,400 tpd during the third quarter,
which is an improvement over Q2-2015 and about 7% above design
capacity of 35,000 tpd. This improvement included an average
throughput of 39,100 tpd for the month of July, thus providing
management with the confidence that the budget rate of 37,500 tpd
is very achievable on a consistent basis. The increase in
throughput is directly attributable to the installation of the
permanent secondary crusher and mine site management's ability to
optimize the crushing and grinding circuit.
During the quarter the mill processed a total of 3.4 million
tonnes of ore at an average grade of 0.33% copper to produce 20.4
million pounds of copper, 6,300 ounces of gold, and 64,900 ounces
of silver. Sag mill availability was 93.4% during the third
quarter and copper recovery averaged 82.4% which was in line with
the Company's plan. Throughout the quarter management remained
focused on cost reduction and capital discipline.
The following table sets out the major operating parameters for
the mine for the three and nine months ended September 30, 2015.
|
Mine Production
Information
|
Three
months
ended
|
Nine
months
ended
|
|
September
30
|
September
30
|
Copper Mountain
Mine (100% Basis)
|
2015
|
2014
|
2015
|
2014
|
|
|
|
|
|
Mine:
|
|
|
|
|
|
Total tonnes mined
(000's3)
|
14,708
|
15,282
|
43,607
|
44,940
|
|
Ore tonnes mined
(000's)
|
5,381
|
4,514
|
16,734
|
13,232
|
|
Waste tonnes
(000's)
|
9,327
|
10,769
|
26,874
|
31,708
|
|
Stripping
ratio
|
1.73
|
2.39
|
1.61
|
2.40
|
|
|
|
|
|
Mill:
|
|
|
|
|
|
Tonnes milled
(000's)
|
3,437
|
2,817
|
9,671
|
8,223
|
|
Feed Grade
(Cu%)
|
0.33
|
0.42
|
0.33
|
0.40
|
|
Recovery
(%)
|
82.36
|
82.91
|
81.79
|
83.45
|
|
Operating time
(%)
|
93.18
|
90.48
|
92.39
|
90.42
|
|
Tonnes milled
(TPD4)
|
37,345
|
30,691
|
35,402
|
30,241
|
|
|
|
|
|
Production:
|
|
|
|
|
|
Copper production
(000's lbs)
|
20,400
|
21,700
|
58,200
|
60,600
|
|
Gold production
(oz)
|
6,300
|
6,100
|
21,900
|
16,600
|
|
Silver production
(oz)
|
64,900
|
124,100
|
216,300
|
342,600
|
|
|
|
|
|
Site cash costs
per pound of copper produced (net of precious metal credits)
(US$)
|
1.21
|
$1.19
|
1.26
|
$1.48
|
|
|
|
|
|
Total cash costs
per pound of copper sold (net of precious metal credits)
(US$)
|
1.72
|
$1.73
|
1.76
|
$2.00
|
Listed below is a summarized balance sheet and income statement
as well as details for our conference call schedule:
Summarized Balance
Sheet
|
|
|
|
|
|
|
|
September
30,
2015
$
|
December
31,
2014
$
|
Assets
|
|
|
Cash
|
18,477,393
|
21,600,228
|
Accounts Receivable
and prepaids
|
11,898,021
|
6,886,175
|
Inventory
|
38,796,663
|
44,420,673
|
Property, plant and
equipment
|
529,682,361
|
559,118,221
|
Other
Assets
|
80,599,487
|
60,637,691
|
|
679,453,925
|
692,662,988
|
Liabilities
|
|
|
Current
liabilities
|
62,565,291
|
54,876,398
|
Decommissioning and
restoration provision
|
7,825,440
|
7,797,154
|
Interest rate swap
liability
|
9,801,938
|
7,180,836
|
Long-term
debt
|
371,116,640
|
332,902,291
|
Deferred tax
liability
|
5,615,465
|
9,766,301
|
|
456,924,774
|
412,522,980
|
Equity
|
|
|
Share
capital
|
188,306,341
|
188,306,341
|
Contributed
surplus
|
12,704,912
|
11,818,044
|
Retained earnings
(deficit)
|
(47,758,403)
|
(2,928,184)
|
Non-controlling
interest
|
69,276,301
|
82,943,807
|
Total
equity
|
222,529,151
|
280,140,008
|
|
679,453,925
|
692,662,988
|
|
Summarized Income
Statement
|
|
|
|
|
|
|
|
Three
months
|
Nine
months
|
|
ended
|
ended
|
|
September
30,
|
September
30,
|
(CDN$)
|
2015
$
|
2014
$
|
2015
$
|
2014
$
|
Revenues
|
63,701,608
|
82,546,359
|
191,968,622
|
211,762,279
|
Cost of
sales5
|
(65,787,068)
|
(63,719,525)
|
(186,150,332)
|
(181,446,733)
|
Gross profit
(loss)
|
(2,085,460)
|
18,826,834
|
5,818,290
|
30,315,546
|
|
|
|
|
|
Other income and
expenses
|
|
|
|
|
General and
administration
|
(1,446,508)
|
(1,672,495)
|
(5,674,402)
|
(4,586,806)
|
Share based
compensation
|
(236,010)
|
(438,939)
|
(819,208)
|
(3,215,609)
|
Operating income
(loss)
|
(3,767,978)
|
16,715,400
|
(675,320)
|
22,513,131
|
|
|
|
|
|
Pricing adjustments
on concentrate and metal sales
|
5,880,121
|
7,055,406
|
13,926,135
|
11,138,725
|
Finance
income
|
12,824
|
33,921
|
211,961
|
190,908
|
Finance
expense
|
(2,762,906)
|
(1,942,041)
|
(7,790,080)
|
(6,613,033)
|
Current resource tax
expense
|
(120,604)
|
(446,352)
|
(587,816)
|
(836,408)
|
Deferred income and
resource tax recovery (expense)
|
2,793,194
|
(3,237,373)
|
4,738,652
|
(3,283,743)
|
Adjusted
earnings6
|
2,034,651
|
18,178,961
|
9,823,532
|
23,109,580
|
|
|
|
|
|
Pricing adjustments
on concentrate and metal sales
|
(5,880,121)
|
(7,055,406)
|
(13,926,135)
|
(11,138,725)
|
Unrealized gain
(loss) on interest rate swap
|
(2,313,173)
|
219,522
|
(3,938,002)
|
(2,285,418)
|
Unrealized gain
(loss) on foreign exchange
|
(21,962,756)
|
(15,317,045)
|
(49,012,053)
|
(15,971,345)
|
Net loss and
comprehensive loss for the period
|
(28,121,399)
|
(3,973,968)
|
(57,052,658)
|
(6,285,908)
|
|
|
|
|
|
Net income (loss)
and comprehensive income (loss) attributable to:
|
|
|
|
|
Shareholders of the
company
|
(21,059,135)
|
(2,820,267)
|
(43,385,152)
|
(5,516,252)
|
Non-controlling
interest
|
(7,062,264)
|
(1,153,701)
|
(13,667,506)
|
(769,656)
|
|
(28,121,399)
|
(3,973,968)
|
(57,052,658)
|
(6,285,908)
|
|
|
|
|
|
Earnings (loss)
per share
|
(0.18)
|
(0.02)
|
(0.37)
|
(0.05)
|
Adjusted earnings
per share
|
0.02
|
0.15
|
0.08
|
0.20
|
The full set of financial statements and
accompanying MD&A are posted on Sedar.com.
Exploration Update:
Exploration activities at the mine
site during this period of low metal prices were minimized as part
of the mine cost reduction plan. A relatively small, 4-hole, 1500m,
diamond-drill program was undertaken to test for mineralization in
an area immediately to the south of the Virginia deposit. The drill-hole
locations were planned to test for the potential extension of
economic mineralization. No economic mineralization was encountered
in the area adjacent to the southeast end of the Virginia Pit. One
hole was extended to test the area below the Virginia deposit for high-grade underground
minable mineralization. Assay results are not yet
complete but visual inspections suggests that no economic
mineralization extends to depth and at this point no further
drilling is planned for this area.
A second drill program has recently been initiated to test the
continuity of mineralization through the upper part of the saddle
zone (the area between Pits 2 and 3). The results from this
drill program will provide the infill drill data for mine
design.
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.
|
Conference Call Details:
|
A conference call and webcast will be held on Monday
November 9th, 2015 at 7:30 am (Pacific Daylight Time)
for management to discuss the 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=1063363&s=1&k=C5D3C008E58CC5F87EE721C80003C639
|
|
Replay call information
|
Toronto and international: 416-764-8677, passcode
181686# North America
(toll-free): 888-390-0541, passcode
181686# The conference call
replay will be available from 10:30 am (PST) on November 9,
2015, until 11:59 pm PST on November 23,
2015 Participant audio webcast
will also be available on the company's website
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.
_______________________
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