COPPER MOUNTAIN MINING CORPORATION Web Site: www.CuMtn.com
TSX: CUM
VANCOUVER, Aug. 8, 2016 /PRNewswire/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces second quarter revenues of $62.6 million after pricing adjustments and treatment charges from the sale of 24.9 million pounds of copper equivalent (including 20.1 million pounds of copper, 7,200 ounces of gold, and 63,700 ounces of silver). Total cash cost for the quarter ended June 30, 2016 was US$1.58 per pound of copper sold, net of precious metals credits.
Highlights (100% Basis)
----------------------
Copper, gold and silver production for the second
quarter of 2016 at Copper Mountain Mine was 26.5
million pounds of copper equivalent which
includes 21.2 million pounds of copper, 7,980
ounces of gold and 74,600 ounces of silver.
Revenues for the second quarter of 2016 were
$62.6 million from the sale of 20.1 million
pounds of copper, 7,200 ounces of gold, and
63,700 ounces of silver, net of pricing
adjustments.
Gross profit for the quarter was $2.4 million.
EBITDA was $13.1 million for the quarter,
compared to $14.8 million in the same quarter
for 2015.
Mill throughput averaged 37,300 tpd during the
quarter, up 5% as compared to 35,600 for the
same quarter for 2015.
Site cash costs for the quarter were US$1.17 per
pound of copper produced net of precious metal
credits.
Total cash costs for the quarter were in-line
with expectations at US$1.58 per pound of copper
sold net of precious metal credits and after all
off-site charges, a reduction of 8% over Q2
2015 total cash costs.
Realized prices on metal sales for Q2 2016 were
US$2.13 per pound of copper, US$1,269 per ounce
of gold and US$16.62 per ounce of silver.
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Jim O'Rourke, President and CEO of Copper Mountain, remarked "During the second quarter of 2016, Copper Mountain continued to demonstrate improvement in production. The mill finished the quarter strong by averaging 39,800 tpd throughput for the last two weeks of the month. This continued for the month of July where a new mill throughput record of 40,700 tpd monthly average was achieved. Despite the challenging commodities price environment, the mine has been cash flow positive from operations by focusing on cost controls and production efficiencies. Total cash costs for the quarter decreased by 13% to US$1.58 per pound of copper sold net of precious metal credits and after all off-site charges, over Q2 2015 total cash costs. Mine production was ahead of budget during the quarter with approximately 196,900 tonnes mined per day, well above our 2016 guidance of 174,000 tpd."
Mr. O'Rourke continued, "The increased production has produced an increase in capital resources. At the end of the quarter the Company had a total of $24.9 million of capital resources in the form of $5.1 million in cash and cash equivalents,$9.6 million in concentrate sales receivables, and $10.2 million of concentrate inventory waiting at the port to be shipped. We will continue to focus on cost control and operational improvements to further strengthen the Company's balance sheet."
Summary Financial Results
Three months
ended Six months ended
June 30, June 30,
(CDN$, except for cash
cost data in US$) 2016 2015 2016 2015
$ $ $ $
--- --- --- --- ---
Revenues 62,552 56,810 121,278 128,267
Gross profit (loss) 2,360 1,154 5,881 7,904
Net (loss) income and
comprehensive (loss)
income (2,275) 2,872 16,653 (28,931)
Adjusted earnings (loss)
(1) (5,313) 3,476 (11,236) 7,789
Adjusted earnings (loss)
per share(2) (0.04) 0.03 (0.09) 0.07
EBITDA 13,081 14,821 47,083 (2,855)
Adjusted EBITDA 10,043 15,426 19,194 33,865
Cash flow from operating
activities before
working capital items 14,335 6,901 29,496 24,777
Cash and cash equivalents 5,149 22,349
Accounts payable and
accrued liabilities 34,039 38,847
Working capital (17,305) 15,763
Equity 193,283 251,816
Copper produced (000's
lbs) 21,200 19,500 40,200 37,900
Gold produced (oz) 7,980 7,800 15,600 15,600
Silver produced (oz) 74,600 71,100 139,300 151,400
Copper sold (000's lbs) 20,100 18,400 38,200 39,900
Gold sold (oz) 7,200 6,300 14,100 13,900
Silver sold (oz) 63,700 66,700 124,900 159,400
Site cash costs per pound
of copper produced (net
of gold, silver credits)
(US$) 1.17 1.36 1.21 1.30
Total cash costs per
pound of copper sold
(net of gold, silver
credits) (US$) 1.58 1.81 1.55 1.79
Realized Copper Price
(US$) 2.13 2.74 2.12 2.68
Copper Mountain Mine
During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 20.1 million pounds of copper, 7,200 ounces of gold, and 63,700 ounces of silver which generated $62.6 million in revenue net of treatment and refining charges and pricing adjustments. Site cash costs were US$1.17 per pound of copper produced and total cash costs were US$1.58 per pound sold, net of precious metal credits for the three months ended June 30, 2016; compared to site cash costs of US$1.36 per pound of copper produced and total cash costs of US$1.81 per pound of copper sold, net of precious metal credits for the three months ended June 30, 2015. The increase in revenue is a result of stronger sales volumes as compared to the same period last year, a higher gold price as precious metals account for 20% of the revenue, and a higher foreign exchange rate for the US dollar as all sales are in US dollars. The Revenue was partially offset by a lower copper price realized during the quarter.
Mining activities continued to be focused in the Pit #2 and the Virginia pit areas for the second quarter of 2016. During the quarter a total of 17.9 million tonnes of material was mined, including 5.7 million tonnes of ore and 12.2 million tonnes of waste for a strip ratio of 2.14:1. For the quarter the mining rate averaged 196,000 tonnes per day moved.
During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.34% copper to produce 21.2 million pounds of copper, 7,980 ounces of gold, and 74,600 ounces of silver. Mill recoveries were 82.4% for the quarter. Mill operating time during the quarter averaged 91.5% compared to 90.8% averaged during Q2 2015. The mill continued to achieve monthly improvements in throughput during the quarter and averaged a rate of 37,300 tpd for the quarter. The improvements in throughput continued into July where the mill averaged 40,700 tpd throughput with a 96% operating time.
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,
2016 2015
$ $
--- ---
Assets
------
Cash 5,149 12,190
Accounts Receivable and
prepaids 16,556 11,990
Inventory 50,129 44,882
Property, plant and equipment 494,671 519,750
Other Assets 69,009 58,494
------ ------
635,514 647,306
======= =======
Liabilities
-----------
Accounts payable and accrued
liabilities 34,039 40,608
Current portion of long-term
debt 40,948 33,115
Other 14,152 10,704
Hydro deferral 6,828 -
Decommissioning and
restoration provision 7,375 7,787
Interest rate swap liability 7,681 7,061
Long-term debt 331,208 371,610
------- -------
442,231 470,885
------- -------
Equity
------
Share capital 188,306 188,306
Contributed surplus 13,369 12,929
Retained earnings (deficit) (69,656) (81,379)
Non-controlling interest 61,264 56,565
------ ------
Total equity 193,283 176,421
------- -------
635,514 647,306
======= =======
Summarized Income Statement
Three months ended Six months ended
June 30,
June 30,
(CDN$) 2016 2015 2016 2015
$ $ $ $
=== === === ===
Revenues 62,552 56,810 121,278 128,267
Cost of sales(3) (60,192) (55,656) (115,397) (120,363)
------- ------- -------- --------
Gross profit 2,360 1,154 5,881 7,904
Other income and expenses
General and administration (1,199) (2,777) (2,979) (4,228)
Low grade stockpile write-down (2,262) - (4,219) -
Share based compensation (212) (258) (446) (583)
---- ---- ---- ----
Operating income (1,313) (1,382) (1,763) 3,093
Finance income 41 86 138 199
Finance expense (2,853) (2,516) (5,984) (5,027)
Unrealized gain (loss) on interest rate swap (754) 366 (3,320) (1,625)
Unrealized gain (loss) on foreign exchange 2756 5,195 27,904 (27,049)
---- ----- ------ -------
(Loss) income before tax (2,123) 1,749 16,975 (30,410)
Current resource tax expense (152) (102) (322) (467)
Deferred income and resource tax recovery - 1,225 - 1,945
--- ----- --- -----
Net income (loss) and comprehensive income (loss) for the period (2,275) 2,872 16,653 (28,931)
====== ===== ====== =======
Net income (loss) and comprehensive income (loss) attributable to:
Shareholders of the company (1,894) 1,642 11,723 (22,326)
Non-controlling interest (381) 1,230 4,930 (6,605)
---- ----- ----- ------
(2,275) 2,872 16,653 (28,931)
====== ===== ====== =======
Earnings (loss) per share (0.02) 0.01 0.10 (0.19)
The full set of financial statements and accompanying MD&A are posted on Sedar.com.
Exploration Update:
During the quarter exploration work consisted of continuous compilation work in the area of the open pits. In addition, the Company initiated a localized diamond drill program designed to provide an extension to the western end of Pit 2.
Exploration - Generative
The exploration team continues to investigate and evaluate early and advanced-exploration properties as well as development projects, which are located within the America's. Additional geophysics and a possible diamond drilling program is planned for the Fenton gold/zinc project in northern British Columbia later this year.
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, August 8, 2016 at 7:30 am (Pacific Daylight Time) for
management to discuss the second quarter 2016 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=1224652&s=1&k=19F8DDE9C7DEEBDD11DCD4E6D6EADD1E
Replay call information
Toronto and international: 416-764-8677, passcode 976881
North America (toll-free):
888-390-0541, passcode 976881
The conference call replay will be available from 10:30 am (PDT) on August 8, 2016, until 11:59 pm PST on August 15,
2016
Participant audio webcast will also be available on the Company's website at 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 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.
SOURCE Copper Mountain Mining Corporation
