COPPER MOUNTAIN MINING CORPORATION 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, Aug. 11, 2014 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces sales of 18 million pounds of copper, 6,300 ounces of gold and 94,900 ounces of silver to produce revenues of $68 million after pricing adjustments and treatment charges, including a $5.8 million positive pricing adjustment for the three months ended June 30(th), 2014.
Second Quarter 2014 Highlights (100% Basis)
------------------------------------------
The Company achieved record production for the
2014 second quarter at Copper Mountain Mine with
19.9 million pounds of copper, 5,000 ounces of
gold and 113,300 ounces of silver being
produced. This represents a 27% increase in
copper production above the same period last
year.
Mill throughput averaged 30,477 tpd which was a
4% improvement from the 2014 first quarter
Mining rates improved with the addition of two
additional trucks and the dispatch system. The
mining rate set a new record in June which
averaged 200,000 tonnes of material moved per
day.
Revenues for the quarter were $68.0 million
including positive pricing adjustments of $5.8
million
EBITDA(1) was $25.3 million for the quarter
ended June 30th, 2014.
Gross profit totaled $10.4 for the three months
ended June 30th, 2014.
Earnings attributable to shareholders of the
company were $9.5 million or $0.08 per share.
Site cash costs for the 2014 second quarter were
US$1.63 per pound of copper produced net of
precious metal credits.
Total cash costs for the period was US$2.27 per
pound of copper sold net of precious metal
credits and after all off-site charges.
Realized prices on metal sales were $3.08 per
pound of copper, $1,293 per ounce of gold and
$19.62 per ounce of silver.
Jim O'Rourke, President and CEO of Copper Mountain, remarked "This quarter marks our 7(th) consecutive quarter of improved copper production. Copper production remains on track to meet guidance levels of 80-90 million pound of copper for the 2014 fiscal year. During this quarter, mill throughput continued to improve as a result of increasing the amount of minus 2 inch ore entering the SAG mill by utilizing the contract crushing and portable crushing measures. These temporary initiatives will be discontinued and dismantled shortly".
Mr. O'Rourke continued, "The $40 million secondary crusher project has reached mechanical completion on schedule and budget,. Commissioning is underway and the first ore was processed during the first week of August. The new crusher has been tested at its 70% range and has operated well at 2,600tpoh."
___________________
(1)Earnings before interest, taxes, depreciation, and
amortization. Refer to the Non-GAAP Performance
measures section of this MD&A
Summary Financial Results
Three months ended Six months ended
June 30, June 30,
(CDN$,
except
for cash
cost data
in US$) 2014 2013 2014 2013
$ $ $ $
--- --- --- --- ---
Revenues 68,033,648 45,698,504 129,215,920 100,792,325
Gross
profit 10,392,636 (1,634,959) 11,488,712 6,429,449
Operating
income
(loss) 7,735,877 (2,625,165) 5,797,731 3,684,334
Adjusted
earnings(2) (1,793,510) 1,527,901 4,930,619 9,372,195
Net income
(loss) 13,307,852 (12,083,649) (2,311,940) (14,355,559)
Earnings
(loss)
attributable
to
shareholders
of the
Company (2,695,985) (17,041,754)
9,458,355 (14,766,979)
Earnings
(loss)
per
share(3) 0.08 (0.15) (0.02) (0.17)
Adjusted
earnings
(loss)
per
share4 (0.02) 0.02 0.04 0.10
EBITDA 25,322,416 (3,004,792) 20,081,687 4,456,917
Cash Flow
from
operating
activities
before
working
capital
items 17,447,551 5,892,912 26,056,212 18,514,409
Cash and
cash
equivalents 20,213,980 6,983,156
Working
capital 27,995,507 (1,699,149)
Equity 299,365,314 243,043,981
Copper
produced
(lbs) 19,900,000 15,700,000 39,000,000 29,900,000
Gold
produced
(oz) 5,000 5,600 10,500 11,000
Silver
produced
(oz) 113,300 71,000 218,600 135,000
Copper
sold
(lbs) 18,000,000 14,700,000 37,800,000 29,800,000
Gold sold
(oz) 6,300 5,400 12,800 11,300
Silver
sold (oz) 94,900 66,000 193,600 135,000
Site cash
costs per
pound of
copper
produced
(net of
gold,
silver
credits)
(US$) 1.63 1.81 1.64 1.72
Total cash
costs per
pound of
copper
sold (net
of gold,
silver
credits)
(US$) 2.27 2.32 2.18 2.25
Copper Mountain Mine
During the second quarter, the mine shipped 35,900 wmt of concentrate containing 18 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $68 million, realizing a gross profit of $10.4 million. The total cash cost of copper sold for the three months ended June 30, 2014 was US$2.27 per pound of copper after gold and silver by-product credits.
During the second quarter, the Copper Mountain Mine achieved record copper production. Total production for the three months ended June 30 , 2014 was 19.9 million pounds of copper, 5,000 ounces of gold and 113,300 ounces of silver. This represents a 27% growth in copper production from the same period last year.
SAG Mill throughput improved during the quarter with a total of 2.7 million tonnes of ore being milled at an average grade of 0.39% copper, as compared to 2.5 million tonnes of ore being milled at an average grade of 0.33% copper in the second quarter of 2013, an increase in tonnage of 7.4%. The mill achieved a 90% operating time during the quarter and copper production was in line with guidance.
Construction of the new permanent secondary crusher facility was completed on schedule and on budget. All major equipment has been installed and construction is considered complete. The new secondary crusher received its first ore during the first week of August and since then the crusher operated well at 2,600 tpoh.With the contribution of the new crusher during it's commissioning the SAG mill throughput averaged 34,442 tpd during the first week of August.
Mining activities continued on the stage two pushback of Pit 3, while mining activities in the Pit 2 area were focused on the southwest pushback of the Pit. During the quarter a total of 16.1 million tonnes of material was mined, including 4.6 million tonnes of ore and 11.5 million tonnes of waste. The projected life of mine strip ratio is 2 to 1 but higher in the early years. The mine moved an average of approximately 174,000 tonnes of material per day during the quarter. With the addition of two new haul trucks that were commissioned in May and the new dispatch system productivity increased to the 200,000 tpd capacity level in June. The mining fleet continues to have excellent mechanical availability.
___________________________
(2)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.
(3)Calculated based on weighted average number of shares outstanding under
the basic method based on earnings attributable to shareholders.
4Calculated based on weighted average number of shares outstanding under
the basic method based on adjusted earnings.
Listed below are a summarized balance sheet and income statement as well as conference call in details:
Summarized Balance Sheet
June 30, December 31,
2014 2013
$ $
--- ---
Assets
------
Cash 20,213,980 42,281,137
Accounts Receivable and
prepaids 22,287,541 17,953,700
Inventory 34,682,515 26,789,416
Property, plant and equipment 553,589,887 531,890,214
Other Assets 52,939,670 44,166,934
---------- ----------
683,713,593 663,081,401
=========== ===========
Liabilities
-----------
Current liabilities 49,188,529 44,374,657
Decommissioning and restoration
provision 7,338,736 6,245,963
Interest rate swap liability 6,666,291 6,364,019
Long-term debt 314,363,836 311,241,671
Deferred tax liability 6,790,887 6,354,461
--------- ---------
384,348,279 374,580,771
----------- -----------
Equity
------
Share capital 188,298,205 186,291,105
Contributed surplus 10,832,476 9,662,977
Retained earnings 12,596,044 15,292,029
Non-controlling interest 87,638,589 77,254,519
---------- ----------
Total equity 299,365,314 288,500,630
----------- -----------
683,713,593 663,081,401
=========== ===========
Summarized Income Statement
Three months ended Six months ended
June 30, June 30,
(CDN$) 2014 2013 2014 2013
$ $ $ $
--- --- --- ---
Revenues 68,033,648 45,698,504 129,215,920 100,792,325
Cost of sales5 (57,641,012) (47,333,463) (117,727,208) (94,362,876)
----------- ----------- ------------ -----------
Gross profit (loss) 10,392,636 (1,634,959) 11,488,712 6,429,449
Other income and expenses
General and administration (1,286,649) (1,032,273) (2,914,311) (2,729,140)
Share based compensation (1,370,110) 42,067 (2,776,670) (15,975)
---------- ------ ---------- -------
Operating income (loss) 7,735,877 (2,625,165) 5,797,731 3,684,334
Pricing adjustments on concentrate and metal sales (5,781,614) 5,353,368 4,083,319 9,500,117
Finance income 134,276 85,943 156,987 185,424
Finance expense (2,612,281) (2,203,677) (4,670,992) (4,302,996)
Current resource tax expense (265,711) (120,016) (390,056) (417,425)
Deferred income and resource tax recovery (expense) (1,004,057) 1,037,448 (46,370) 722,741
---------- --------- ------- -------
Adjusted (loss) earnings6 (1,793,510) 1,527,901 4,930,619 9,372,195
---------- --------- --------- ---------
Pricing adjustments on concentrate and metal sales 5,781,614 (5,353,368) (4,083,319) (9,500,117)
Unrealized gain (loss) on interest rate swap (1,573,046) 2,264,371 (2,504,940) 2,554,208
Unrealized gain (loss) on foreign exchange 10,892,794 (10,522,553) (654,300) (16,781,845)
---------- ----------- -------- -----------
Net Income (loss) comprehensive income(loss) for the period 13,307,852 (12,083,649) (2,311,940) (14,355,559)
---------- ----------- ---------- -----------
Net income (loss) and comprehensive income (loss) attributable to:
Shareholders of the company 9,458,355 (14,766,979) (2,695,985) (17,041,754)
Non-controlling interest 3,849,497 2,683,330 384,045 2,686,195
--------- --------- ------- ---------
13,307,852 (12,083,649) (2,311,940) (14,355,559)
========== =========== ========== ===========
Earnings (loss) per share 0.08 (0.15) (0.02) (0.17)
Adjusted (loss) earnings per share (0.02) 0.02 0.04 0.10
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 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 25% of the mine. The Copper Mountain mine commenced production in the summer of 2011 and has continued to improve its operations since startup. 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 properties full development potential. Additional information is available on the Company's web site at www.CuMtn.com.
__________________________
5Cost 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.
6Adjusted 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.
A conference call and audio webcast will be held on Monday August 11th, 2014 at 7:30 am (Pacific Standard Time) for management to discuss the 2014 second quarter 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://www.newswire.ca/en/webcast/detail/1384467/1535799
Replay call information
Toronto and international: 416-764-8677, passcode 129123
North America (toll-free): 888-390-0541, passcode 129123
The conference call replay will be available from 10:30 am (PST) on August 11, 2014 until 11:59 pm PST on August 25, 2014
Participant audio webcast will also be available on the company's website http://www.cumtn.com
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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.
SOURCE Copper Mountain Mining Corporation
