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. 10, 2015 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces second quarter revenues of $56.8 million after pricing adjustments and treatment charges from the sale of 18.4 million pounds of copper, 6,300 ounces of gold, and 66,700 ounces of silver. Total cash costs for the quarter ended June 30, 2015 was US$1.81 per pound of copper sold, net of precious metals credits.
Q2 -2015 Highlights (100%
Basis)
--------------------------
· Copper, gold and silver
production for the second
quarter of 2015 at Copper
Mountain Mine (100%) was 19.5
million pounds of copper, 7,800
ounces of gold and 71,100
ounces of silver.
· Revenues for the second quarter
of 2015 were $56.8 million from
the sale of 18.4 million pounds
of copper, 6,300 ounces of
gold, and 66,700 ounces of
silver, net of pricing
adjustments.
· Adjusted earnings were $3.5
million for the quarter.
· Cash flow from operations was
$15 million for the quarter.
· Cash on hand at the end of the
quarter was $22.4 million, an
increase of $7 million over the
first quarter ending cash
position.
· Mine production continued at a
mining rate of 167,000 tpd
moved.
· In early April 2015, the SAG
mill achieved an all time daily
throughput record of 45,939
tpd.
· Site cash costs for the quarter
were in-line with expectations
at US$1.36 per pound of copper
produced net of precious metal
credits.
· Total cash costs for the quarter
were in-line with expectations
at US$1.81 per pound of copper
sold net of precious metal
credits and after all off-site
charges.
· Realized prices on metal sales
for Q2 2015 were US$2.74 per
pound of copper, US$1,196 per
ounce of gold and US$16.41 per
ounce of silver.
--- -------------------------------
Jim O'Rourke, President and CEO of Copper Mountain, remarked "Cost reductions and increased production are our continued focus. The disciplined dedication to our goals is reflected in the increased operating performance and the reduced costs achieved in the second quarter. This continuing drive for improvements at the mine is positioning the Company well to weather current global market conditions. In addition, Copper Mountain's bottom line continues to benefit from a weaker Canadian dollar relative to the U.S. dollar, as approximately 88% of the Company's operating costs have a Canadian dollar cost basis".
Mr. O'Rourke continued, "Copper Mountain Mining generated positive free cash flow during the second quarter, helped by increased productivity and lower costs. In keeping with this trend, no major capital expenditures are planned for the second half of 2015 and production improvements are expected to continue through to the end of the year".
Summary Financial Results
Three months ended Six months ended
June 30, June 30,
(CDN$,
except
for
cash
cost
data
in
US$) 2015 2014 2015 2014
$ $ $ $
--- --- --- --- ---
Revenues 56,810,348 68,033,648 128,267,014 129,215,920
Gross
profit 1,153,758 10,392,636 7,903,750 11,488,712
Operating
income
(loss) (1,381,761) 7,735,877 3,092,658 5,797,731
Adjusted
earnings
(loss)(1) 3,476,530 (1,793,510) 7,788,881 4,930,619
Adjusted
earnings
(loss)
per
share(2) 0.03 (0.02) 0.07 0.04
EBITDA 14,821,489 25,322,416 (2,854,707) 20,081,687
Adjusted
EBITDA 15,426,044 10,221,054 33,865,433 27,324,246
Cash
Flow
from
operating
activities
before
working
capital
items 14,983,996 (449,683) 13,358,191 11,994,521
Cash
and
cash
equivalents 22,348,724 20,213,980
Working
capital 15,763,368 27,995,507
Equity 251,816,029 299,365,314
Copper
produced
(lbs) 19,500,000 19,900,000 37,900,000 39,000,000
Gold
produced
(oz) 7,800 5,000 15,600 10,500
Silver
produced
(oz) 71,100 113,300 151,400 218,600
Copper
sold
(lbs) 18,400,000 18,000,000 39,900,000 37,800,000
Gold
sold
(oz) 6,300 6,300 13,900 12,800
Silver
sold
(oz) 66,700 94,900 159,400 193,600
Site
cash silver
costs credits)
per (US$)
pound
of
copper
produced
(net
of
gold, 1.36 1.63 1.30 1.64
Total
cash silver
costs credits)
per (US$)
pound
of
copper
sold
(net
of
gold, 1.81 2.27 1.79 2.18
Realized
Copper
Price
(US$) 2.74 3.08 2.68 3.14
During the quarter, the company completed three shipments of concentrate containing approximately 18.4 million pounds of copper, 6,300 ounces of gold, and 66,700 ounces of silver to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $56.8 million, realizing a gross profit of $1.2 million. The total cash cost of copper sold for the quarter ended June 30, 2015 were in-line with expectations at US$1.81 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, mining activities continued in the Pit 2 area where the majority of the 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. Copper head grade for the year is forecasted to be on average 0.33% copper or approximately 0.41% copper equivalent. During the quarter a total of 14.2 million tonnes of material was mined, including 5.7 million tonnes of ore and 8.5 million tonnes of waste, realizing a strip ratio of 1.48. The mining rate at the end of the period was in the range of 167,000 tpd moved. As a result of cost cutting measures taken early in the year site cash costs were in-line with expectations at US$1.36 per pound of copper after gold and silver by-product credits.
Mill throughput from the concentrator continued to improve month-over-month, averaging 35,600 tpd during the second quarter, which was an improvement of approximately 7% during the quarter as compared to the first quarter of 2015. This is a milestone for the operation as it was the first time that the concentrator has exceeded design capacity of 35,000 tpd for an entire quarter. This improvement continued into July 2015, as throughput averaged 39,100 tpd for the month, thus providing management with confidence that the targeted rate of 37,500 tpd is achievable on a consistent basis. This increase in throughput is directly attributable to the installation of the secondary crusher and mine site management's ability to optimize the crushing and grinding circuit.
During the quarter the mill processed a total of 3.2 million tonnes of ore at an average grade of 0.33% copper to produce 19.5 million pounds of copper, 7,800 ounces of gold, and 71,100 ounces of silver. SAG Mill availability was 90.7% during the second quarter as a result of planned maintenance during the period. Copper recovery averaged 82.4%, which was in-line with the Company's plans.
The following table sets out the major operating parameters for the mine for the three and six months ended June 30, 2015.
Mine Production
Information Three months ended Six months ended
June 30 June 30
Copper Mountain Mine
(100% Basis) 2015 2014 2015 2014
-------------------- ---- ---- ---- ----
Mine:
Total tonnes mined
(000's(3)) 14,196 16,086 28,899 29,658
Ore tonnes mined (000's) 5,719 4,616 11,353 8,718
Waste tonnes (000's) 8,477 11,470 17,547 20,940
Stripping ratio 1.48 2.48 1.55 2.40
Mill:
Tonnes milled (000's) 3,242 2,771 6,233 5,406
Feed Grade (Cu%) 0.33 0.39 0.34 0.39
Recovery (%) 82.38 83.90 81.50 83.73
Operating time (%) 90.78 90.07 92.00 90.35
Tonnes milled (TPD4) 35,600 30,477 34,400 29,910
Production:
Copper production (000's
lbs) 19,500 19,900 37,900 39,000
Gold production (oz) 7,800 5,000 15,600 10,500
Silver production (oz) 71,100 113,300 151,400 218,600
Site cash costs per
pound of copper
produced (net of
precious metal
credits) (US$) $1.36 $1.63 $1.30 $1.64
Total cash costs per
pound of copper
sold (net of
precious metal
credits) (US$) $1.81 $2.27 $1.79 $2.18
Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:
Summarized Balance Sheet
June 30, December 31,
2015 2014
$ $
--- ---
Assets
------
Cash 22,348,724 21,600,228
Accounts Receivable
and prepaids 9,243,996 6,886,175
Inventory 43,593,152 44,420,673
Property, plant and
equipment 541,611,314 559,118,221
Other Assets 73,910,915 60,637,691
---------- ----------
690,708,101 692,662,988
=========== ===========
Liabilities
-----------
Current liabilities 59,422,504 54,876,398
Decommissioning and
restoration
provision 7,823,289 7,797,154
Interest rate swap
liability 7,402,598 7,180,836
Long-term debt 355,955,626 332,902,291
Deferred tax
liability 8,288,055 9,766,301
--------- ---------
438,892,072 412,522,980
----------- -----------
Equity
------
Share capital 188,306,341 188,306,341
Contributed surplus 12,425,324 11,818,044
Retained earnings
(deficit) (25,254,201) (2,928,184)
Non-controlling
interest 76,338,565 82,943,807
---------- ----------
Total equity 251,816,029 280,140,008
----------- -----------
690,708,101 692,662,988
=========== ===========
Summarized Income Statement
Three months ended Six months ended
June 30, June 30,
(CDN$) 2015 2014 2015 2014
$ $ $ $
--- --- --- ---
Revenues 56,810,348 68,033,648 128,267,014 129,215,920
Cost of sales5 (55,656,590) (57,641,012) (120,363,264) (117,727,208)
----------- ----------- ------------ ------------
Gross profit (loss) 1,153,758 10,392,636 7,903,750 11,488,712
Other income and expenses
General and administration (2,277,062) (1,286,649) (4,227,894) (2,914,311)
Share based compensation (258,457) (1,370,110) (583,198) (2,776,670)
-------- ---------- -------- ----------
Operating income (loss) (1,381,761) 7,735,877 3,092,658 5,797,731
Pricing adjustments on concentrate and metal sales 6,165,574 (5,781,614) 8,046,014 4,083,319
Finance income 85,915 134,276 199,137 156,987
Finance expense (2,516,248) (2,612,281) (5,027,174) (4,670,992)
Current resource tax expense (102,386) (265,711) (467,212) (390,056)
Deferred income and resource tax recovery (expense) 1,225,436 (1,004,057) 1,945,458 (46,370)
--------- ---------- --------- -------
Adjusted (loss) earnings6 3,476,530 (1,793,510) 7,788,881 4,930,619
--------- ---------- --------- ---------
Pricing adjustments on concentrate and metal sales (6,165,574) 5,781,614 (8,046,014) (4,083,319)
Unrealized gain (loss) on interest rate swap 366,359 (1,573,046) (1,624,829) (2,504,940)
Unrealized gain (loss) on foreign exchange 5,194,660 10,892,794 (27,049,297) (654,300)
--------- ---------- ----------- --------
Net Income (loss) comprehensive income (loss) for the period 2,871,975 13,307,852 (28,931,259) (2,311,940)
--------- ---------- ----------- ----------
Net income (loss) and comprehensive income (loss) attributable to:
Shareholders of the company 1,642,018 9,458,355 (22,326,017) (2,695,985)
Non-controlling interest 1,229,957 3,849,497 (6,605,242) 384,045
--------- --------- ---------- -------
2,871,975 13,307,852 (28,931,259) (2,311,940)
========= ========== =========== ==========
Earnings (loss) per share 0.01 0.08 (0.19) (0.02)
Adjusted (loss) earnings per share 0.03 (0.02) 0.07 0.04
The full set of financial statements and accompanying MD&A are posted on Sedar.com.
Exploration Update:
As part of efforts to minimize capital expenditures during the period of lower copper prices, exploration activities at the mine site during the quarter were limited to a continuation of geotechnical mapping and compilation of geological data. In addition three dimensional computer assisted modelling of the dykes and other geological zones were carried out. Planning and optimization of drill hole placement and orientation for deep drilling in the Pit 3 area was undertaken and integration of the recently completed magnetic survey inversion with deep penetration induced polarization data for the purposes of defining blind exploration targets was continued.
During the quarter the Company issued an updated 43-101 report for the mine, including a ten year production forecast. Over the next ten years it is anticipated that the mine grade will average 0.43%Cu equivalent grade. Production rates will be set each year as part of the annual budgeting process.
Upgrading of inferred resources to reserve status with additional drilling has been very successful and is the major goal of the long-term exploration plan. Discovery of new mineralized areas continues as a focus of the on-going exploration program; however, exploration activities will be sensitive to copper price.
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. The key development for 2014 was the installation of the secondary crusher as a permanent solution to maximize concentrator throughput and improve overall efficiencies for the company. Secondary crusher construction was completed by the end of July 2014 on budget and on schedule. 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 August 10th, 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://
www.newswire.ca/VmoA8
Replay call information
Toronto and international: 416-764-8677, passcode 290698
North America (toll-free): 888-390-0541, passcode 290698
The conference call replay will be available from 10:30 am (PST) on
August 11, 2015, until 11:59 pm PST on August 24, 2015
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.
(_______________________
)(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
