Copper Mountain Mining Announces Q2 Financial 2017 Results

(firmenpresse) -
Copper Mountain Mining Announces Q2 Financial 2017 Results

Vancouver, British Columbia - August 8, 2017 - Copper Mountain Mining Corporation (TSX: CMMC) (the Company or Copper Mountain) announces second quarter revenues of $67.1 million after pricing adjustments and treatment charges from the sale of 21.1 million pounds of copper equivalent, including 17.6 million pounds of copper, 6,300 ounces of gold, and 62,700 ounces of silver. Total cash cost for the quarter ended June 30, 2017 was US$1.74 per pound of copper sold, net of precious metals credits.

Highlights (100% Basis)

- Copper, gold and silver production for the second quarter of 2017 at Copper Mountain Mine was 20.5 million pounds of copper equivalent which includes 17.2 million pounds of copper, 5,900 ounces of gold and 63,200 ounces of silver.

- Revenues for the second quarter of 2017 were $67.1 million from the sale of 17.6 million pounds of copper, 6,300 ounces of gold, and 62,700 ounces of silver, net of pricing adjustments.

- EBITDA was $25.2 million for the quarter, compared to $13.1 million for the same quarter for 2016.

- Net income for the period was $10 million or $0.05 per share.

- Cash Flow from operations was $25.9 million, compared to $13.7 million in Q2 for 2016.

- Cash balance at the the end of Q2 was $37.1 million compared to $5.1 million at the end of Q2 2016.

- Mill throughput averaged 35,674 tpd during the quarter, as expected due to the bull gear installation on the SAG mill. his planned maintenance, completed ahead of schedule, is factored into our 2017 guidance of 75M-85M Lbs Cu.

- Site cash costs for the quarter were US$1.31 per pound of copper produced, net of precious metal credits.

- Total cash costs for the quarter were in line with expectations at US$1.74 per pound of copper sold, net of precious metal credits and after all off-site charges.

- Realized prices on metal sales for Q2 2017 were US$2.58 per pound of copper, US$1,254 per ounce of gold and US$17.11 per ounce of silver.

Jim ORourke, President and CEO of Copper Mountain, remarked During the second quarter of 2017, Copper Mountain completed the SAG mill bull gear change ahead of schedule resulting in an average 87.1% mill operating time for the first half of 2017, a slight improvement over plan. Mill throughput for May and June averaged 43,500 and 41,000 tpd respectively, above forecast and well in line to meet our 2017 guidance. The coarser grind from the higher tonnage results in a lower recovery, but copper production remains on target. With the additional maintenance behind us in the first half of 2017 an improved performance is projected for the second half of 2017. Mr. ORourke continued, We remain bullish on global copper markets and with our production on target we are well positiond to benefit from an upswing in the copper price. We will continue to focus on cost control and operational improvements to further strengthen the Companys balance sheet.


Summary Financial Results

Three Six months
months ended
ended June 30,


June 30,
(CDN$, except for cash cost 2017 2016 2017 2016
data in $ $ $ $
US$)


Revenues 67,14662,55141,2121,2
2 42 78

Gross profit 8,321 2,36019,535,881
2

Net (loss) income 10,111(2,2717,2216,65
5) 8 3

Adjusted earnings (loss)1 4,033 (5,314,361(11,2
3) 36)

Adjusted earnings (loss) per 0.03 (0.040.03 (0.09
shar ) )
e2
EBITDA 25,18613,0848,0047,08
1 5 3

Adjusted EBITDA 19,10810,0435,1319,19
3 8 4

Cash flow from operating 25,87013,7228,728,557
activities 0 0



Cash and cash equivalents 37,105,149
4

Working capital (incl. $30,287 (13,4(17,3
due to related 06) 05)
party
2016 -$22,653)
Equity 213,8193,2
57 83


Copper produced (000s lbs) 17,20021,2035,3040,20
0 0 0

Gold produced (oz) 5,900 7,98011,8015,60
0 0

Silver produced (oz) 63,20074,60127,5139,3
0 00 00


Copper sold (000s lbs) 17,60020,1036,6038,20
0 0 0

Gold sold (oz) 6,300 7,20012,3014,10
0 0

Silver sold (oz) 62,70063,70126,7124,9
0 00 00


Site cash costs per pound of 1.31 1.17 1.35 1.14
copper produced (net of gold,
silver credits)
(US$)

Total cash costs per pound of 1.74 1.58 1.80 1.55
copper sold (net of gold,
silver credits)
(US$)

Realized Copper Price (US$) 2.58 2.13 2.62 2.12

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.

Copper Mountain Mine

During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 17.6 million pounds of copper, 6,300 ounces of gold, and 62,700 ounces of silver which generated $67.1 million in revenue net of treatment and refining charges and pricing adjustments. Site cash costs were US$1.31 per pound of copper produced and total cash costs were US$1.74 per pound sold, net of precious metal credits for the three months ended June 30, 2017; compared to site cash costs of US$1.17 per pound of copper produced and total cash costs of US$1.58 per pound of copper sold, net of precious metal credits for the three months ended June 30, 2016. The increase in revenue is a result of stronger copper prices being realized as compared to the same period last year.

Mining activities continued from the Pit 2, Saddle and Oriole Pit areas. A total of 18.2 million tonnes of material was mined, including 6.3 million tonnes of ore and 11.9 million tonnes of waste, resulting in a strip ratio of 1.89 to 1. High equipment mechanical availability was maintained during the quarter which helped contribute to the above average mining rates being achieved of 199,800 tonnes per day moved, well above our 2017 mining guidance rate of 180,000 tonnes per day moved. Mining costs per tonne during the quarter were $1.77 per tonne moved.

The mill successfully completed the planned replacement of the SAG mill bull gear in April, ahead of schedule. Downtime for this job was factored into our annual production guidance of 75M-85M lbs of copper. Mill tonnage following the shutdown averaged 43,482 tpd, and 41,057 tpd for the months of May and June respectively.

During the quarter, 3.2 million tonnes of ore were milled at an average rate of 35,674 tpd, with 82.4% operating time. Copper recovery for the period was 77.5% treating an average grade of 0.31% copper.

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,

2017
$ 2016
$
Assets
Cash 37,104 31,409
Accounts Receivable and 17,001 26,048
prepaids

Inventory 54,398 48,465
Property, plant and 444,102 463,080
equipment


Other Assets 92,265 78,788
644,870 647,790
Liabilities
Accounts payable and 40,276 36,488
accrued
liabilities

Current portion of 50,975 46,415
long-term
debt

Other 30,658 23,810
Hydro deferral 9,366 15,385
Decommissioning and 6,042 6,312
restoration provision


Interest rate swap liability3,621 4,088
Long-term debt 290,075 319,759
431,013 452,257
Equity
Share capital 194,588 194,208
Contributed surplus 15,489 14,773
Deficit (61,710)(73,656)
Non-controlling interest 65,490 60,208
Total equity 213,857 195,533
644,870 647,790

Summarized Income Statement

Three months Six months
ended ended June
30,
June 30,
(CDN$) 2017 2016 2017 2016
$ $ $ $
Revenues 67,146 62,552 141,24121,278
2

Cost of sales3 (58,825(60,192)(121,7(115,39
) 10 7)
)
Gross profit 8,321 2,360 19,5325,881

Other income and expenses
General and administration (1,658)(1,199) (4,375(2,979)
)

Low grade stockpile write-down - (2,262) - (4,219)
Share based compensation (250) (212) (773) (446)
Operating income 6,413 (1,313) 14,384(1,763)

Finance income 211 41 356 138
Finance expense (3,298)(2,853) (6,734(5,984)
)

Unrealized loss on interest (416) (754) (774) (3,320)
rate
swap

Unrealized gain on foreign 7,297 2,756 10,46727,904
exchange

Income (loss) before tax 10,207 (2,123) 17,69916,975

Current resource tax expense (96) (152) (471) (322)

Net income (loss) and 10,111 (2,275) 17,22816,653
comprehensive income (loss)
for the
period


Net income (loss) and
comprehensive income (loss)
attributable
to:

Shareholders of the company 7,223 (1,894) 11,94611,723
Non-controlling interest 2,888 (381) 5,282 4,930
10,111 (2,275) 17,22816,653

Earnings (loss) per share 0.05 (0.02) 0.09 0.10

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.

The full set of financial statements and accompanying MD&A are posted on Sedar.com.

Exploration Update:

The Company began a summer 10,000m exploration drilling program at the Copper Mountain Mine. The 2017 program is targeting to further extend Pit 2 to the West and to follow up on the pre-2012 drilling that intersected significant mineralization below Pit 2.

Previous drilling by the Company in the Pit 2 Eastern zone intersected a 128m interval grading 1.01% Cu and 0.25g/t Au (including 39m grading 2.33% Cu and 0.38g/t Au) beginning approximately 90m below the current pit bottom in hole 10SD-64. In addition, hole number 10SD-68 intersected 173m interval grading 0.43% Cu and 0.15g/t Au, while hole number 12P2-19 intersected 123m interval grading 0.52% Cu and 0.27g/t Au. The exploration drilling is designed to better determine the trend and continuity for high-grade mineralization at depth under Pit2.

Results of this program are expected in Q3 of 2017 and with the strengthening of the commodity price over the last year and the mines improved financial position, the Company will continue to allocate funds towards exploration drilling at the mine site.

2017 Guidance:

The 2017 guidance remains unchanged at production of 75 million - 85 million Lbs copper plus precious metal credits.

About Copper Mountain Mining Corporation:

Copper Mountains 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 propertys full development potential. Additional information is available on the Companys web page at www.CuMtn.com.

A conference call and audio webcast will be held on Tuesday August 8, 2017 at 7:30 am (Pacific Daylight Time) for management to discuss the second quarter 2017 results. This discussion will be followed by a question-and-answer period with investors.

Live Dial-in information
Toronto and international: 647-427-7450
North America (toll-free): 888-231-8191

To participate in the webcast live via your computer go to: http://event.on24.com/r.htm?e=1466139&s=1&k=E3817D1FFF1664BB160345A27D7DA122

Replay call information
Toronto and international: 416-849-0833, passcode 54136683
North America (toll-free): 1-855-859-2056, passcode 54136683

The conference call replay will be available from 10:30 am (PDT) on August 8th, 2017, until 20:59 pm PST on Tuesday, August 22nd, 2017.

Participant audio webcast will also be available on the Companys website at http://www.cumtn.com
http://www.CuMtn.com


On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

Rod Shier-

Rodney A. Shier, CPA,CA
Chief Financial Officer

For further information, please contact:
Dan Gibbons, Investor Relations 604-682-2992 ext. 238 Email: Dan(at)cumtn.com
Rod Shier, Chief Financial Officer 604-682-2992 ext.222 Email: Rod(at)CuMtn.com
Website: www.CuMtn.com

Copper Mountain Mining Corporation
Suite 1700, 700 West Pender Street
Vancouver, BC V6C 1G8
Telephone: (604) 682-2992
Facsimile: (604) 682-2993
TSX: CMMC

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.

Unternehmensinformation / Kurzprofil:
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Datum: 09.08.2017 - 07:56 Uhr
Sprache: Deutsch
News-ID 555765
Anzahl Zeichen: 17176

contact information:
Town:

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Kategorie:

Business News

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