Copper Mountain Mining Announces Q1 2017 Financial Results

Web Site: www.CuMtn.com
TSX: CMMC

VANCOUVER, April 25, 2017 /PRNewswire/ - Copper Mountain Mining Corporation (TSX: CMMC) (the "Company" or "Copper Mountain") announces first quarter revenues of $74.1 million after pricing adjustments and treatment charges from the sale of 19.0 million pounds of copper, 6,000 ounces of gold, and 64,000 ounces of silver. Total cash cost for the quarter ended March 31, 2017 was US$1.86 per pound of copper sold, net of precious metals credits.

Jim O'Rourke, President and CEO of Copper Mountain, remarked "During the first quarter of 2017, the mining rate averaged 199,600 tpd moved or 10.5% above plan.  This extra mine production continues to strengthen the mine plan and enhances the ore release flexibility.  This strong mine performance provides opportunities to better benefit from the improved metal prices".

As reported earlier, mining activities were mainly focused in the Pit #2 and the Saddle areas for the first quarter of 2017.  During the quarter a total of 18.0 million tonnes of material was mined, including 5.7 million tonnes of ore and 12.3 million tonnes of waste for a strip ratio of 2.16:1.  High equipment mechanical availability was maintained during the quarter which helped contribute to the above average mining rates of 199,600 tonnes per day moved, well above our 2017 mining guidance rate of 180,000 tonnes per day moved.

During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.31% copper to produce 18.1 million pounds of copper, 5,900 ounces of gold, and 64,300 ounces of silver. Mill head grade was slightly above guidance for the quarter, while copper recoveries were slightly below plan at 79% for the quarter because of processing some fine-grained ore in the saddle area. This is a small area of the pit that was mined mid quarter and recoveries returned back in line with the plan.  Mill operating time during the quarter averaged 92%  and the mill achieved an average throughput rate of 37,350 tpd during the quarter.

During the period the Company recognized revenues of $74.1 million, net of pricing adjustments and treatment charges based on an average realized copper price of US$2.65 per pound; compared to revenues of $58.7 million net of pricing adjustments and an average copper price of US$2.10 per pound for the period ended March 31, 2016. Gross profit for the quarter was $11.2 million as compared to a gross profit of $1.6 million for the period ended March 31, 2016.  The increase in revenues and gross profit for Q1 2017 is due to the increase in the sales price of copper along with more pounds of copper being sold as compared to the same period in 2016.

The Company reported net income of $7.1 million or $0.04 per share for the three months ended March 31, 2017, compared to net income of $18.9 million or $0.11 per share for the three months ended March 31, 2016. The decrease in net income for the current quarter compared to the same quarter in 2016 is largely attributable to the non-cash unrealized foreign exchange gain of $25.1 million in 2016 that was related to the Company's US dollar denominated debt.

Site cash costs were US$1.36 per pound of copper produced and total cash costs were US$1.86 per pound sold, net of precious metal credits for the three months ended March 31, 2017; compared to site cash costs of US$1.16 per pound of copper produced and total cash costs of US$1.61 per pound of copper sold, net of precious metal credits for the three months ended March 31, 2016. The increase in site costs for the three months ended March 31, 2017 as compared to the three months ended March 31, 2016 are the result of a 4% increase in power costs, an increase in the cost of fuel, an increased use of more expensive wet hole explosives due to wet drill hole condition in the area of the pit mined during the quarter, and the timing of mine and mill maintenance projects.

Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:

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 has a large resource of copper that remains open laterally and at depth. This significant exploration potential will be explored over the next few years in order to fully appreciate the property's full development potential.  Additional information is available on the Company's web page at 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