Copper Mountain Mining Announces Positive Q1 2016 Results
Web Site: www.CuMtn.com
TSX: CUM
VANCOUVER, May 2, 2016 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces first quarter revenues of $58.7 million after pricing adjustments and treatment charges from the sale of 22.3 million pounds of copper equivalent (including 18.1 million pounds of copper, 6,900 ounces of gold, and 61,200 ounces of silver). Total cash cost for the quarter ended March 31, 2016 was US$1.61 per pound of copper sold, net of precious metals credits.
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Jim O'Rourke, President and CEO of Copper Mountain, remarked "During the first quarter of 2016, Copper Mountain continued to demonstrate solid performance within a challenging commodities price environment by focusing on cost containment and production efficiencies. Total cash costs for the quarter decreased by 9% to US$1.61 per pound of copper sold net of precious metal credits and after all off-site charges, over Q1 2015 total cash costs. Mine production was strong during the quarter with approximately 192,000 tonnes mined per day, well above our 2016 guidance of 174,000 tpd. Mill throughput for the quarter averaged 37,100 tpd, a 9% quarter-over-quarter increase, further demonstrating Copper Mountain's ability to operate above design capacity of 35,000 tpd on a sustained basis".
Mr. O'Rourke continued, "At this time, I would like to acknowledge the dedication and efforts of our employees and suppliers for their commitments and cooperation in successfully tackling the challenges necessary to survive in the current copper price environment. We continue to focus on cost control and operational improvements to deal with the reality of the current global economic climate and are well positioned to benefit from higher metal prices in the future."
Summary Financial Results
| Three months ended March 31, |
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| (CDN$, except for cash cost data in US$) |
2016 $ |
2015 $ |
| Revenues |
58,726 |
71,457 |
| Gross profit (loss) |
1,564 |
6,750 |
| Operating income (loss) |
(450) |
4,474 |
| Adjusted earnings 1 |
(7,880) |
4,312 |
| Adjusted earnings per share2 |
(0.07) |
0.04 |
| EBITDA |
34,002 |
(17,676) |
| Adjusted EBITDA |
7,194 |
18,439 |
| Cash Flow from operating activities before working capital items |
15,161 |
17,876 |
| Cash and cash equivalents |
1,761 |
14,792 |
| Accounts payable and accrued liabilities |
30,519 |
40,608 |
| Working capital |
(13,946) |
17,923 |
| Equity |
195,348 |
248,686 |
| Copper produced (000's lbs) |
19,000 |
18,400 |
| Gold produced (oz) |
7,600 |
7,800 |
| Silver produced (oz) |
64,700 |
80,300 |
| Copper sold (000's lbs) |
18,100 |
21,500 |
| Gold sold (oz) |
6,900 |
7,600 |
| Silver sold (oz) |
61,200 |
92,700 |
| Site cash costs per pound of copper produced (net of gold, silver credits) (US$) |
1.16 |
1.21 |
| Total cash costs per pound of copper sold (net of gold, silver credits) (US$) |
1.61 |
1.77 |
| Realized Copper Price (US$) |
2.10 |
2.64 |
Copper Mountain Mine
During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 18.1 million pounds of copper, 6,900 ounces of gold, and 61,200 ounces of silver which generated $58.7 million in revenue net of treatment and refining charges and pricing adjustments. Site cash costs were US$1.16 per pound of copper produced and total cash costs were US$1.61 per pound sold, net of precious metal credits for the three months ended March 31, 2016; compared to site cash costs of US$1.21 per pound of copper produced and total cash costs of US$1.77 per pound of copper sold, net of precious metal credits for the three months ended March 31, 2015.
Mining activities were mainly focused in the Pit #2 and the Virginia pit areas for the first quarter of 2016. During the quarter a total of 17.4 million tonnes of material was mined, including 5.7 million tonnes of ore and 11.8 million tonnes of waste for a strip ratio of 2.07:1. During the quarter, the mine achieved a new daily mining record of 242,950 tpd, which was made possible by the opening up of short waste haul opportunities and a continued focus on maximizing haul truck hours. For the quarter the mine averaged 194,000 tonnes per day moved.
During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.312% copper to produce 19 million pounds of copper, 7,600 ounces of gold, and 64,600 ounces of silver. Mill recoveries were 82% for the quarter. Mill operating time during the quarter averaged 91% operating time, with March operating time coming in at 93.5%, compared to 93.2% averaged during Q1-2015. The mill achieved an average throughput rate of 37,100 tpd during the quarter, as the Company had some planned and unplanned downtime associated with the SAG mill discharge screen early in the quarter that reduced the quarter's average.
Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:
Summarized Balance Sheet
| March 31, 2016 $ |
December 31, 2015 $ |
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| Assets |
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| Cash |
1,761 |
12,190 |
| Accounts Receivable and prepaids |
16,865 |
11,990 |
| Inventory |
45,162 |
44,882 |
| Property, plant and equipment |
504,904 |
519,750 |
| Other Assets |
64,577 |
58,494 |
| 633,269 |
647,306 |
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| Liabilities |
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| Accounts payable and accrued liabilities |
32,479 |
40,608 |
| Current portion of long-term debt |
31,361 |
33,115 |
| Other |
13,894 |
10,704 |
| Decommissioning and restoration provision |
6,943 |
7,787 |
| Interest rate swap liability |
8,678 |
7,061 |
| Long-term debt |
344,566 |
371,610 |
| 437,921 |
470,885 |
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| Equity |
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| Share capital |
188,306 |
188,306 |
| Contributed surplus |
13,159 |
12,929 |
| Retained earnings (deficit) |
(67,762) |
(81,379) |
| Non-controlling interest |
61,645 |
56,565 |
| Total equity |
195,348 |
176,421 |
| 633,269 |
647,306 |
Summarized Income Statement
| Three months ended March 31, |
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| (CDN$) |
2016 $ |
2015 $ |
| Revenues |
58,726 |
71,457 |
| Cost of sales3 |
(57,162) |
(64,707) |
| Gross profit |
1,564 |
6,750 |
| Other income and expenses |
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| General and administration |
(1,780) |
(1,951) |
| Share based compensation |
(234) |
(325) |
| Operating income |
(450) |
4,474 |
| Pricing adjustments on concentrate and metal sales |
(4,226) |
1,881 |
| Finance income |
97 |
113 |
| Finance expense |
(3,131) |
(2,510) |
| Current resource tax expense |
(170) |
(365) |
| Deferred income and resource tax recovery |
- |
720 |
| Adjusted earnings4 |
(7,880) |
4,312 |
| Pricing adjustments on concentrate and metal sales |
4,226 |
(1,881) |
| Unrealized gain (loss) on interest rate swap |
(2,566) |
(1,991) |
| Unrealized gain (loss) on foreign exchange |
25,148 |
(32,244) |
| Net income (loss) and comprehensive income (loss) for the period |
18,928 |
(31,803) |
| Net income (loss) and comprehensive income (loss) attributable to: |
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| Shareholders of the company |
13,617 |
(23,968) |
| Non-controlling interest |
5,311 |
(7,835) |
| 18,928 |
(31,803) |
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| Earnings (loss) per share |
$0.11 |
($0.21) |
| Adjusted earnings per share |
($0.07) |
$0.04 |
The full set of financial statements and accompanying MD&A are posted on Sedar.com.
Exploration Update:
At the Copper Mountain site the exploration work during the quarter consisted of continuous near mine compilation work as well as developing localized exploration drill programs to optimize long term mine planning. The exploration team continues to investigate and evaluate early and advanced-exploration properties as well as development projects, which are predominately located within the America's.
2016 Guidance:
The 2016 mine plan has a majority of ore coming from Pit #2 and the Virginia Pit areas. 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, May 2, 2016 at 7:30 am (Pacific Daylight Time) for management to discuss the first quarter 2016 results. This discussion will be followed by a question-and-answer period with investors. |
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| Live Dial-in information |
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| Toronto and international: |
416-764-8688 |
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| North America (toll-free): |
888-390-0546 |
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| To participate in the webcast live via your computer go to: |
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| Replay call information |
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| Toronto and international: |
416-764-8677, passcode 976881 |
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| North America (toll-free): |
888-390-0541, passcode 976881 |
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| The conference call replay will be available from 10:30 am (PDT) on May 2nd, 2016, until 11:59 pm PST on Monday, May 16, 2016 |
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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 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.
4 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
Betty LeBlanc, BA, MBA, Investor Relations 604-682-2992 ext. 238 Email: [email protected]; Rod Shier, Chief Financial Officer 604-682-2992 ext.222 Email: [email protected]; Website: www.CuMtn.com
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