Copper Mountain announces 2014 second quarter results
Web Site: www.CuMtn.com
TSX: CUM
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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 30th, 2014.
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Second Quarter 2014 Highlights (100% Basis) |
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Jim O'Rourke, President and CEO of Copper Mountain, remarked "This quarter marks our 7th 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 $40 million secondary crusher project has reached mechanical completion on schedule and budget,. Commissioning is underway and the first ore was processed during the first week of August. The new crusher has been tested at its 70% range and has operated well at 2,600tpoh."
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1Earnings before interest, taxes, depreciation, and amortization. Refer to the Non-GAAP Performance measures section of this MD&A |
Summary Financial Results
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Three months ended June 30, |
Six months ended June 30, | |||
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(CDN$, except for cash cost data in US$) |
2014 $ |
2013 $ |
2014 $ |
2013 $ |
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Revenues |
68,033,648 |
45,698,504 |
129,215,920 |
100,792,325 |
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Gross profit |
10,392,636 |
(1,634,959) |
11,488,712 |
6,429,449 |
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Operating income (loss) |
7,735,877 |
(2,625,165) |
5,797,731 |
3,684,334 |
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Adjusted earnings2 |
(1,793,510) |
1,527,901 |
4,930,619 |
9,372,195 |
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Net income (loss) |
13,307,852 |
(12,083,649) |
(2,311,940) |
(14,355,559) |
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Earnings (loss) attributable to shareholders of the Company |
9,458,355 |
(14,766,979) |
(2,695,985) |
(17,041,754) |
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Earnings (loss) per share3 |
0.08 |
(0.15) |
(0.02) |
(0.17) |
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Adjusted earnings (loss) per share4 |
(0.02) |
0.02 |
0.04 |
0.10 |
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EBITDA |
25,322,416 |
(3,004,792) |
20,081,687 |
4,456,917 |
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Cash Flow from operating activities before working capital items |
17,447,551 |
5,892,912 |
26,056,212 |
18,514,409 |
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Cash and cash equivalents |
20,213,980 |
6,983,156 | ||
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Working capital |
27,995,507 |
(1,699,149) | ||
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Equity |
299,365,314 |
243,043,981 | ||
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Copper produced (lbs) |
19,900,000 |
15,700,000 |
39,000,000 |
29,900,000 |
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Gold produced (oz) |
5,000 |
5,600 |
10,500 |
11,000 |
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Silver produced (oz) |
113,300 |
71,000 |
218,600 |
135,000 |
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Copper sold (lbs) |
18,000,000 |
14,700,000 |
37,800,000 |
29,800,000 |
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Gold sold (oz) |
6,300 |
5,400 |
12,800 |
11,300 |
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Silver sold (oz) |
94,900 |
66,000 |
193,600 |
135,000 |
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Site cash costs per pound of copper produced (net of gold, silver credits) (US$) |
1.63 |
1.81 |
1.64 |
1.72 |
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Total cash costs per pound of copper sold (net of gold, silver credits) (US$) |
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.
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2Adjusted 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. |
Listed below are a summarized balance sheet and income statement as well as conference call in details:
Summarized Balance Sheet
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June 30, 2014 $ |
December 31, 2013 $ |
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Assets |
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Cash |
20,213,980 |
42,281,137 | ||
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Accounts Receivable and prepaids |
22,287,541 |
17,953,700 | ||
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Inventory |
34,682,515 |
26,789,416 | ||
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Property, plant and equipment |
553,589,887 |
531,890,214 | ||
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Other Assets |
52,939,670 |
44,166,934 | ||
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683,713,593 |
663,081,401 | |||
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Liabilities |
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Current liabilities |
49,188,529 |
44,374,657 | ||
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Decommissioning and restoration provision |
7,338,736 |
6,245,963 | ||
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Interest rate swap liability |
6,666,291 |
6,364,019 | ||
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Long-term debt |
314,363,836 |
311,241,671 | ||
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Deferred tax liability |
6,790,887 |
6,354,461 | ||
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384,348,279 |
374,580,771 | |||
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Equity |
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Share capital |
188,298,205 |
186,291,105 | ||
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Contributed surplus |
10,832,476 |
9,662,977 | ||
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Retained earnings |
12,596,044 |
15,292,029 | ||
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Non-controlling interest |
87,638,589 |
77,254,519 | ||
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Total equity |
299,365,314 |
288,500,630 | ||
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683,713,593 |
663,081,401 | |||
Summarized Income Statement
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Three months ended June 30, |
Six months ended June 30, | |||
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(CDN$) |
2014 $ |
2013 $ |
2014 $ |
2013 $ |
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Revenues |
68,033,648 |
45,698,504 |
129,215,920 |
100,792,325 |
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Cost of sales5 |
(57,641,012) |
(47,333,463) |
(117,727,208) |
(94,362,876) |
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Gross profit (loss) |
10,392,636 |
(1,634,959) |
11,488,712 |
6,429,449 |
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Other income and expenses |
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General and administration |
(1,286,649) |
(1,032,273) |
(2,914,311) |
(2,729,140) |
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Share based compensation |
(1,370,110) |
42,067 |
(2,776,670) |
(15,975) |
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Operating income (loss) |
7,735,877 |
(2,625,165) |
5,797,731 |
3,684,334 |
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Pricing adjustments on concentrate and metal sales |
(5,781,614) |
5,353,368 |
4,083,319 |
9,500,117 |
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Finance income |
134,276 |
85,943 |
156,987 |
185,424 |
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Finance expense |
(2,612,281) |
(2,203,677) |
(4,670,992) |
(4,302,996) |
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Current resource tax expense |
(265,711) |
(120,016) |
(390,056) |
(417,425) |
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Deferred income and resource tax recovery (expense) |
(1,004,057) |
1,037,448 |
(46,370) |
722,741 |
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Adjusted (loss) earnings6 |
(1,793,510) |
1,527,901 |
4,930,619 |
9,372,195 |
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Pricing adjustments on concentrate and metal sales |
5,781,614 |
(5,353,368) |
(4,083,319) |
(9,500,117) |
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Unrealized gain (loss) on interest rate swap |
(1,573,046) |
2,264,371 |
(2,504,940) |
2,554,208 |
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Unrealized gain (loss) on foreign exchange |
10,892,794 |
(10,522,553) |
(654,300) |
(16,781,845) |
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Net Income (loss) comprehensive income(loss) for the period |
13,307,852 |
(12,083,649) |
(2,311,940) |
(14,355,559) |
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Net income (loss) and comprehensive income (loss) attributable to: |
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Shareholders of the company |
9,458,355 |
(14,766,979) |
(2,695,985) |
(17,041,754) |
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Non-controlling interest |
3,849,497 |
2,683,330 |
384,045 |
2,686,195 |
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13,307,852 |
(12,083,649) |
(2,311,940) |
(14,355,559) | |
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Earnings (loss) per share |
0.08 |
(0.15) |
(0.02) |
(0.17) |
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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.
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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. |
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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. |
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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 |
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
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