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, 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$14.70 per ounce of silver.
------------------------------------------------
Jim O'Rourke, President and CEO of Copper Mountain, remarked "We are very pleased to see another consecutive quarter of mill throughput improvements that have been made possible by the addition of secondary crushing. During the quarter the mill achieved a record quarterly average throughput of 37,400 tpd, 7% above our design capacity of 35,000 tpd. The 39,100 tpd average mill throughput achieved in July provides management encouragement for further improvements. We continue to focus on maximizing production while minimizing all costs. Recent modifications have provided further gains and we are confident these gains are sustainable."
Mr. O'Rourke continued, "Copper Mountain Mining generated positive free cash flow during the third quarter. In keeping with this trend, no major capital expenditures are planned for balance of 2015 and production improvements are expected to continue through to the end of the year. Mine plans are continuously being reviewed and optimized to best address current market conditions."
Summary Financial Results
Three months ended Nine months ended
September 30, September 30,
(CDN$,
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
share(2) 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$) 1.21 1.19 1.26 1.48
Total
cash (US$)
costs
per
pound of
copper
sold
(net of
gold,
silver
credits) 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 Nine months
ended ended
September 30 September 30
Copper Mountain Mine
(100% Basis) 2015 2014 2015 2014
-------------------- ---- ---- ---- ----
Mine:
Total tonnes mined
(000's(3)) 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, December 31,
2015 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
