Copper Mountain announces third quarter 2013 results
| 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. |
Web Site: www.CuMtn.com
TSX: CUM
VANCOUVER, Oct. 30, 2013 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces revenues of $67.6 million after pricing adjustments and treatment charges for the three months ended September 30, 2013.
| Third Quarter 2013 Highlights (100% Basis) |
|
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1 EBITDA represents earnings before interest, income taxes and depreciation
2 Adjusted EBITDA removes unrealized gains/ losses on derivative instruments and foreign exchange gains/ losses
Jim O'Rourke, President and CEO of Copper Mountain, remarked "we are very pleased with the progress that is being made at the site. SAG Mill throughput has continued to improve with our recently implemented short term improvements which will continue while the longer term permanent secondary crusher is installed. September was an excellent month with mill availability exceeding budget and mill throughput averaging 31,925 tpd, a 22.8 percent increase over the 26,000 tpd average for the first half of the year. Production of 6.8 million pounds copper has been our best month of production since start up. We are cash flow positive and we will be continuing to improve the operation as we further increase the amount of minus 2 inch ore being fed to the SAG Mill".
Mr. O'Rourke continued, "Looking forward, management's efforts are fully focused on the installation of a secondary crusher and we are continuing to work with our partner and project banks to get the installation advanced as soon as possible."
Production during the quarter totaled 17.7 million pounds of copper, 6,400 ounces of gold, and 79,300 ounces of silver. Sales for the quarter were 16.6 million pounds of copper, 6,300 ounces of gold, and 77,100 ounces of silver, generating an EBITDA of $29.5 million for the quarter. The Company ended the quarter with $17.1 million in cash which helped eliminate the working capital deficit of the previous quarter. Listed in the table below is a summary of the financial results:
Summary Financial Results
| Three months ended | Nine months ended | |||
| September 30, | September 30, | |||
| (CDN$, except for cash cost data in US$) |
2013 $ |
2012 (restated) $ |
2013 $ |
2012 (restated) $ |
| Revenues | 67,615,718 | 47,646,402 | 168,408,043 | 179,387,350 |
| Gross profit (loss) | 16,369,921 | 4,188,510 | 22,799,370 | 45,294,852 |
| Operating income (loss) | 15,094,744 | 2,324,545 | 18,779,078 | 39,929,541 |
| Adjusted earnings (loss)3 | 447,137 | (2,976,392) | 9,819,332 | 33,827,627 |
| Net Income (loss) | 15,086,632 | 9,837,744 | 731,073 | 38,335,134 |
| Earnings (loss) attributable to shareholders of the Company | 11,228,008 | 7,021,854 | (441,356) | 27,544,900 |
| Adjusted earnings (loss) per share4 | 0 | (0.03) | 0.1 | 0.34 |
| Earnings (loss) per share5 | 0.11 | 0.07 | 0.00 | 0.28 |
| EBITDA | 29,450,061 | 17,259,395 | 33,906,978 | 63,856,900 |
| Adjusted EBITDA | 14,810,566 | 4,445,259 | 42,995,237 | 59,349,393 |
| Cash and cash equivalents | 17,111,172 | 20,382,828 | 17,111,172 | 20,382,828 |
| Working capital | 12,770,023 | 24,716,985 | 12,770,023 | 24,716,985 |
| Equity | 264,430,692 | 255,077,339 | 264,430,692 | 255,077,339 |
| Copper produced (lbs) | 17,679,000 | 12,543,000 | 47,617,000 | 42,809,000 |
| Gold produced (oz) | 6,400 | 4,300 | 17,400 | 13,000 |
| Silver produced (oz) | 79,300 | 77,200 | 214,500 | 287,000 |
| Copper sold (lbs) | 16,630,000 | 12,081,000 | 46,349,000 | 45,936,000 |
| Gold sold (oz) | 6,300 | 3,400 | 17,600 | 14,700 |
| Silver sold (oz) | 77,100 | 81,800 | 212,600 | 330,400 |
| Site cash costs per pound of copper produced (net of gold, silver credits) (US$) | 1.68 | 2.32 | 1.71 | 1.61 |
| Total cash costs per pound of copper sold (net of gold, silver credits) (US$) | 2.22 | 2.83 | 2.24 | 2.15 |
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3 Adjusted earnings (loss) and adjusted earnings (loss) per share are non-GAAP financial measures which remove unrealized gains/losses on interest rate swaps and unrealized foreign currency gains/losses.
4 Calculated based on weighted average number of shares outstanding under the basic method based on adjusted earnings.
5 Calculated based on weighted average number of shares outstanding under the basic method based on earnings attributable to shareholders.
Copper Mountain Mine
During the quarter, the company completed three shipments of concentrate containing approximately 16.6 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $67.6 million, realizing a gross profit of $16.4 million. The total cash cost of copper sold for the three months ended September 30, 2013 was US$2.22 per pound of copper after gold and silver by-product credits.
Mining activities continued in the Pit #3 and Pit#2 area during the quarter. A total of 13.3 million tonnes of material was mined, including 3.9 million tonnes of ore and 9.4 million tonnes of waste at an average mining rate of 154,300 tpd moved during the third quarter of 2013. The ore grade averaged 0.34% Copper for the third quarter. Site cash costs were $1.68 per pound of copper after gold and silver by-product credits.
The mine exited the quarter on a positive note with the mill availability averaging 94.2% and copper production of 6.8 million pounds for the month of September. Mine production was 17.7 million pounds of copper, 6,400 ounces of gold, and 79,300 ounces of silver during the three months of operations ended September 30, 2013. This brought production for the nine months to 47.6 million pounds of copper, 17,400 ounces of gold and 214,500 ounces of silver.
Production improvements can be attributed to the increased average mill throughput rate made possible with the short term secondary crushing strategies that have been implemented and improved in late July. These short term strategies include: utilizing an increased powder factor in the blasting of ore to create more fines; continuing with a contract portable crusher to crush plus 5,000 tpd of ore to minus two inches; and the introduction of the Company's own small portable crusher that was purchased and installed at the coarse ore stockpile during the quarter. The combination of these three activities is designed to create between 12,000 tpd and 13,000 tpd of minus two inch ore feed for the SAG mill. These short term measures have had positive results towards increasing mill throughput.
Listed below are a summarized balance sheet and income statement as well as conference call in details:
Summarized Balance Sheet
| September 30, 2013 $ |
December 31, 2012 (restated) $ |
|
| Assets | ||
| Cash | 17,111,172 | 24,300,790 |
| Accounts Receivable and prepaids | 16,810,572 | 15,352,990 |
| Inventory | 28,297,830 | 20,874,291 |
| Property, plant and equipment | 535,813,979 | 541,607,854 |
| Other Assets | 40,238,370 | 29,684,388 |
| 638,271,923 | 631,820,303 | |
| Liabilities | ||
| Current liabilities | 49,449,551 | 49,851,807 |
| Decommissioning and restoration provision | 6,348,755 | 6,997,883 |
| Interest rate swap liability | 7,462,642 | 10,980,888 |
| Long-term debt | 304,163,284 | 304,178,343 |
| Deferred tax liability | 6,416,999 | 2,754,880 |
| 373,841,231 | 374,763,801 | |
| Equity | ||
| Share capital | 158,110,551 | 157,942,209 |
| Contributed surplus | 9,657,971 | 9,469,280 |
| Retained earnings (deficit) | 17,854,400 | 18,025,756 |
| Non-controlling interest | 79,077,770 | 71,619,257 |
| Total equity | 264,430,692 | 257,056,502 |
| 638,271,923 | 631,820,303 |
Summarized Income Statement
| Three months ended September 30, | Nine months ended September 30, | ||||
| 2013 $ |
2012 (restated note 3) $ |
2013 $ |
2012 (restated note 3) $ |
||
| Revenue | 67,615,718 | 47,646,402 | 168,408,043 | 179,387,350 | |
| Cost of sales | (51,245,797) | (43,457,892) | (145,608,673) | (134,092,498) | |
| Gross profit (loss) | 16,369,921 | 4,188,510 | 22,799,370 | 45,294,852 | |
| Other income and expenses | |||||
| General and administration | (1,249,714) | (1,052,319) | (3,978,854) | (3,455,690) | |
| Share based compensation | (25,463) | (811,646) | (41,438) | (1,909,621) | |
| Operating income (loss) | 15,094,744 | 2,324,545 | 18,779,078 | 39,929,541 | |
| Finance income | 30,649 | 310,828 | 216,073 | 1,256,603 | |
| Finance expense | (2,080,671) | (1,763,226) | (6,383,667) | (6,072,661) | |
| Unrealized gain (loss) on interest rate swap | (279,510) | 71,580 | 2,274,698 | (3,259,889) | |
| Foreign exchange (loss) gain | 6,636,035 | 8,988,290 | (10,145,810) | 7,530,574 | |
| Income (loss) before tax | 19,401,247 | 9,932,017 | 4,740,372 | 39,384,168 | |
| Current resource tax recovery (expense) | (817,615) | (94,273) | (1,235,040) | (1,049,034) | |
| Deferred income tax recovery (expense) | (3,497,000) | - | (2,774,259) | - | |
| Net income (loss) and comprehensive income (loss) | 15,086,632 | 9,837,744 | 731,073 | 38,335,134 | |
| Net income (loss) and comprehensive income (loss) attributable to: | |||||
| Shareholders of the Company | 11,228,008 | 7,021,854 | (441,356) | 27,544,900 | |
| Non-controlling interest | 3,858,624 | 2,815,890 | 1,172,429 | 10,790,234 | |
| 15,086,632 | 9,837,744 | 731,073 | 38,335,134 | ||
| Earnings per share: | |||||
| Basic | 0.11 | 0.07 | 0.00 | 0.28 | |
| Diluted | 0.11 | 0.07 | 0.00 | 0.26 | |
| Weighted average shares outstanding, basic and diluted | 98,618,383 | 98,509,366 | 98,618,383 | 98,506,469 | |
| Shares outstanding at end of the period | 98,619,427 | 98,547,377 | 98,619,427 | 98,547,377 | |
The full set of financial statements and accompanying MD&A are posted on Sedar.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 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 during the year. The 18,000 acre site has a resource of approximately 5 billion pounds of copper and 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 properties full development potential. Additional information is available on the Company's new web page at www.CuMtn.com.
| Copper Mountain will host a conference call on Wednesday, October 30th, 2013 at 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time) to discuss the 2013 third quarter results. The conference call may be accessed by dialing: 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: https://www.newswire.ca/en/webcast/detail/1238125/1363961 Replay call information |
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
Galina Meleger, Corporate Communications 604-682-2992 ext.224 Email: [email protected] or
Rod Shier, Chief Financial Officer 604-682-2992 ext.222 Email: [email protected]
Website: www.CuMtn.com
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