Copper Mountain Mining Production Improvements Strengthen Q2 Financial 2016 Results

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.

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

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:

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.

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.

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SOURCE Copper Mountain Mining Corporation