Copper Mountain announces third quarter 2013 results

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.

Web Site: www.CuMtn.com
TSX: CUM  

VANCOUVER, Oct. 30, 2013 /PRNewswire/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces revenues of $67.6 million after pricing adjustments and treatment charges for the three months ended September 30, 2013.

Third Quarter 2013 Highlights (100% Basis)
  • Total production for the 2013 third quarter at Copper Mountain Mine (100%) was 17.7 million pounds of copper, 6,400 ounces of gold and 79,300 ounces of silver.
  • Revenues of $67.6 million for the quarter after pricing adjustments and treatment charges.
  • Copper concentrate shipments contained approximately 16.6 million pounds of copper, 6,300 ounces of gold, and 77,100 ounces of silver during the quarter.
  • Mining activities continued at a steady rate of 154,300 tonnes per day mined during the third quarter of 2013.
  • Milling activities continued to improve - Average throughput rate was 29,130 tonnes per day (tpd) in the third quarter of 2013, as compared to 26,000 tpd for the first half of the year.
  • Copper Recoveries were 87.2% in the third quarter as compared to 85.0 % for the first half of the year.
  • EBITDA1 and Adjusted EBITDA2 were $29.5 million and $14.8 million for the quarter respectively.
  • Net income attributable to the shareholders of the Company were $11.2 million or $0.11 per share
  • Site cash costs were US$1.68 per pound of copper produced net of precious metal credits.
  • Total costs were US$2.22 per pound of copper sold net of precious metal credits and after all off site charges.
  • Average realized copper price for the period US $3.22 per pound.

__________________________
1 EBITDA represents earnings before interest, income taxes and depreciation
2 Adjusted EBITDA removes unrealized gains/ losses on derivative instruments and foreign exchange gains/ losses

Jim O'Rourke, President and CEO of Copper Mountain, remarked "we are very pleased with the progress that is being made at the site.  SAG Mill throughput has continued to improve with our recently implemented short term improvements which will continue while the longer term permanent secondary crusher is installed. September was an excellent month with mill availability exceeding budget and mill throughput averaging 31,925 tpd, a 22.8 percent increase over the 26,000 tpd average for the first half of the year. Production of 6.8 million pounds copper has been our best month of production since start up.  We are cash flow positive and we will be continuing to improve the operation as we further increase the amount of minus 2 inch ore being fed to the SAG Mill".

Mr. O'Rourke continued, "Looking forward, management's efforts are fully focused on the installation of a secondary crusher and we are continuing to work with our partner and project banks to get the installation advanced as soon as possible."

Production during the quarter totaled 17.7 million pounds of copper, 6,400 ounces of gold, and 79,300 ounces of silver.  Sales for the quarter were 16.6 million pounds of copper, 6,300 ounces of gold, and 77,100 ounces of silver, generating an EBITDA of $29.5 million for the quarter.  The Company ended the quarter with $17.1 million in cash which helped eliminate the working capital deficit of the previous quarter.  Listed in the table below is a summary of the financial results:

Summary Financial Results

  Three months ended  Nine months ended 
September  30, September  30,
(CDN$, except for cash cost data in US$)
2013
$
2012
(restated)
$
2013
$
2012
(restated)
$
         
Revenues 67,615,718 47,646,402 168,408,043 179,387,350
Gross profit (loss) 16,369,921 4,188,510 22,799,370 45,294,852
Operating income (loss) 15,094,744 2,324,545 18,779,078 39,929,541
Adjusted earnings (loss)3 447,137 (2,976,392) 9,819,332 33,827,627
Net Income (loss) 15,086,632 9,837,744 731,073 38,335,134
Earnings (loss) attributable to shareholders of the Company  11,228,008 7,021,854 (441,356) 27,544,900
Adjusted earnings (loss) per share4 0 (0.03) 0.1 0.34
Earnings (loss) per share5 0.11 0.07 0.00 0.28
EBITDA 29,450,061 17,259,395 33,906,978 63,856,900
Adjusted EBITDA 14,810,566 4,445,259 42,995,237 59,349,393
         
Cash and cash equivalents 17,111,172 20,382,828 17,111,172 20,382,828
Working capital 12,770,023 24,716,985 12,770,023 24,716,985
Equity 264,430,692 255,077,339 264,430,692 255,077,339
         
Copper produced (lbs) 17,679,000 12,543,000 47,617,000 42,809,000
Gold produced (oz) 6,400 4,300 17,400 13,000
Silver produced (oz)  79,300 77,200 214,500 287,000
         
Copper sold (lbs) 16,630,000 12,081,000 46,349,000 45,936,000
Gold sold (oz) 6,300 3,400 17,600 14,700
Silver sold (oz) 77,100 81,800 212,600 330,400
Site cash costs per pound of copper produced (net of gold, silver credits) (US$) 1.68 2.32 1.71 1.61
Total cash costs per pound of copper sold (net of gold, silver credits) (US$) 2.22 2.83 2.24 2.15

__________________________
3 Adjusted earnings (loss) and adjusted earnings (loss) per share are non-GAAP financial measures which remove unrealized gains/losses on interest rate swaps and unrealized foreign currency gains/losses.
4 Calculated based on weighted average number of shares outstanding under the basic method based on adjusted earnings.
5 Calculated based on weighted average number of shares outstanding under the basic method based on earnings attributable to shareholders.

Copper Mountain Mine

During the quarter, the company completed three shipments of concentrate containing approximately 16.6 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $67.6 million, realizing a gross profit of $16.4 million.  The total cash cost of copper sold for the three months ended September 30, 2013 was US$2.22 per pound of copper after gold and silver by-product credits.

Mining activities continued in the Pit #3 and Pit#2 area during the quarter.  A total of 13.3 million tonnes of material was mined, including 3.9 million tonnes of ore and 9.4 million tonnes of waste at an average mining rate of 154,300 tpd moved during the third quarter of 2013.  The ore grade averaged 0.34% Copper for the third quarter.  Site cash costs were $1.68 per pound of copper after gold and silver by-product credits.

The mine exited the quarter on a positive note with the mill availability averaging 94.2% and copper production of 6.8 million pounds for the month of September. Mine production was 17.7 million pounds of copper, 6,400 ounces of gold, and 79,300 ounces of silver during the three months of operations ended September 30, 2013.  This brought production for the nine months to 47.6 million pounds of copper, 17,400 ounces of gold and 214,500 ounces of silver.

Production improvements can be attributed to the increased average mill throughput rate made possible with the short term secondary crushing strategies that have been implemented and improved in late July. These short term strategies include: utilizing an increased powder factor in the blasting of ore to create more fines; continuing with a contract portable crusher to crush plus 5,000 tpd of ore to minus two inches; and the introduction of the Company's own small portable crusher that was purchased and installed at the coarse ore stockpile during the quarter.  The combination of these three activities is designed to create between 12,000 tpd and 13,000 tpd of minus two inch ore feed for the SAG mill.  These short term measures have had positive results towards increasing mill throughput.

Listed below are a summarized balance sheet and income statement as well as conference call in details:

Summarized Balance Sheet

  September 30,
2013
$
December 31,
2012
(restated) $
Assets    
Cash 17,111,172 24,300,790
Accounts Receivable and prepaids 16,810,572 15,352,990
Inventory 28,297,830 20,874,291
Property, plant and equipment 535,813,979 541,607,854
Other Assets 40,238,370 29,684,388
  638,271,923 631,820,303
Liabilities    
Current liabilities 49,449,551 49,851,807
Decommissioning and restoration provision 6,348,755 6,997,883
Interest rate swap liability 7,462,642 10,980,888
Long-term debt 304,163,284 304,178,343
Deferred tax liability 6,416,999 2,754,880
  373,841,231 374,763,801
Equity    
Share capital 158,110,551 157,942,209
Contributed surplus 9,657,971 9,469,280
Retained earnings (deficit) 17,854,400 18,025,756
Non-controlling interest 79,077,770 71,619,257
Total equity 264,430,692 257,056,502
  638,271,923 631,820,303

Summarized Income Statement

     Three months ended September 30,             Nine months ended September 30,
    2013
$
2012
(restated note 3)
$
2013
$
2012
(restated note 3)
$
         
Revenue 67,615,718 47,646,402 168,408,043 179,387,350
Cost of sales (51,245,797) (43,457,892) (145,608,673) (134,092,498)
Gross profit (loss) 16,369,921 4,188,510 22,799,370 45,294,852
         
Other income and expenses        
  General and administration (1,249,714) (1,052,319) (3,978,854) (3,455,690)
  Share based compensation (25,463) (811,646) (41,438) (1,909,621)
Operating income (loss) 15,094,744 2,324,545 18,779,078 39,929,541
         
Finance income          30,649 310,828         216,073 1,256,603
Finance expense (2,080,671) (1,763,226) (6,383,667) (6,072,661)
Unrealized gain (loss) on interest rate swap      (279,510) 71,580     2,274,698 (3,259,889)
Foreign exchange (loss) gain 6,636,035 8,988,290 (10,145,810) 7,530,574
         
Income (loss) before tax 19,401,247 9,932,017 4,740,372 39,384,168
         
Current resource tax recovery (expense) (817,615) (94,273) (1,235,040) (1,049,034)
Deferred income tax recovery (expense) (3,497,000) - (2,774,259) -
         
Net income (loss) and comprehensive income (loss) 15,086,632 9,837,744 731,073 38,335,134
         
Net income (loss) and comprehensive income (loss) attributable to:        
  Shareholders of the Company 11,228,008 7,021,854 (441,356) 27,544,900
  Non-controlling interest 3,858,624 2,815,890 1,172,429 10,790,234
         
  15,086,632 9,837,744 731,073 38,335,134
Earnings per share:        
  Basic 0.11 0.07 0.00 0.28
  Diluted 0.11 0.07 0.00 0.26
         
Weighted average shares outstanding, basic and diluted 98,618,383 98,509,366 98,618,383 98,506,469
         
Shares outstanding at end of the period 98,619,427 98,547,377 98,619,427 98,547,377

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 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 during the year. The 18,000 acre site has a resource of approximately 5 billion pounds of copper and 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 new web page at www.CuMtn.com.

Copper Mountain will host a conference call on Wednesday, October 30th, 2013 at 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time) to discuss the 2013 third quarter results. The conference call may be accessed by dialing:

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/1238125/1363961

Replay call information
Toronto and international:   416-764-8677,  passcode  284484
North America (toll-free): 888-390-0541,  passcode  284484

The conference call replay will be available from 10:30  am (PST) on October 30th, 2013, until 11:59 pm PST on November 6th, 2013
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.

SOURCE Copper Mountain Mining Corporation



More by this Source

Best of Content We Love 2014 


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.