Copper Mountain Mining Announces Q3 Financial 2017 Results

(firmenpresse) -
Copper Mountain Mining Announces Q3 Financial 2017 Results

Vancouver, British Columbia - November 6, 2017 - Copper Mountain Mining Corporation (TSX: CMMC) (the Company or Copper Mountain) announces third quarter revenues of $77.1 million after pricing adjustments and treatment charges from the sale of 22.6 million pounds of copper equivalent, including 19.3 million pounds of copper, 6,500 ounces of gold, and 72,700 ounces of silver. Total cash cost for the quarter ended September 30, 2017 was US$1.62 per pound of copper sold, net of precious metals credits.

Highlights (100% Basis)


- Copper, gold and silver production for the third quarter of 2017 at Copper Mountain Mine was 24.4 million pounds of copper equivalent which includes 20.9 million pounds of copper, 6,700 ounces of gold and 79,300 ounces of silver.

- Revenues for the third quarter of 2017 were $77.1 million from the sale of 19.3 million pounds of copper, 6,500 ounces of gold, and 72,700 ounces of silver, net of pricing adjustments.

- EBITDA was $42.9 million for the quarter.

- Net income for the quarter was $26 million or $0.15 per share.

- Cash Flow from operations for the quarter was $31.6 million before working capital changes.

- Cash balance at the the end of Q3 was $43.6 million.

- Mill throughput averaged 41,158 tpd during the quarter, setting a new quarterly throughput record.

- Site cash costs for the quarter were US$1.25 per pound of copper produced, net of precious metal credits.

- Total cash costs for the quarter were in line with expectations at US$1.62 per pound of copper sold, net of precious metal credits and after all off-site charges.

- Realized prices on metal sales for Q3 2017 were US$2.91 per pound of copper, US$1,286 per ounce of gold and US$17.05 per ounce of silver.

Jim ORourke, President and CEO of Copper Mountain, remarked During the third quarter of 2017, Copper Mountain continued to mine at rates well above our guidance levels. Mill throughput averaged 41,158 tpd, 8.4% above forecast and in line to meet our 2017 guidance. The coarser grind from the higher tonnage continues to result in a slightly lower recovery, but copper production remains on target. Mr. ORourke continued, We remain bullish on the outlook for the copper market and with our production on target we are well positioned to benefit from a strong copper price environment. During the first three quarters of 2017 the Company has paid down a total of $43.8 million in principle and interest on project debt and leases. We continue to focus on cost control and operational improvements to further strengthen the Companys balance sheet.

Summary Financial Results

Three months Nine months
ended ended


September 30, September 30,
(In thousands of CDN$, other than 2017 2016 2017 2016
per share and per pound $ $ $ $
amounts)

Revenues 77,151 72,195 218,393 193,473
Gross profit 19,550 4,188 39,082 10,069
Operating income (loss) 17,894 523 32,278 (1,240)
Net income (loss) 26,573 (7,937) 43,801 8,716
Net income (loss) per share 0.15 (0.05) 0.24 0.05
Adjusted earnings (loss) Adjusted 11,051 (1,332) 15,412 (12,568)
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.

Adjusted earnings (loss) per share Ca0.08 (0.01) 0.12 (0.10)
lculated

by dividing the total adjusted
earnings
by the weighted average number of
shares outstanding under the basic
method.


EBITDA Earnings before interest, 42,934 10,006 90,939 57,090
taxes, depreciation and
amortization.
Refer to the Non-GAAP Performance
measures section of this
MD&A
.

Adjusted EBITDA 27,412 16,611 62,550 35,806
Cash flow from operations 11,109 15,862 39,829 24,419

Total pounds of copper sold (000s 19,300 23,500 55,900 61,700
lbs)

Total ounces of gold sold (oz) 6,500 8,600 18,800 22,700
Total ounces of silver sold (oz) 72,700 75,700 199,400 200,600

Cash and cash equivalents 43,645 24,734
Working capital (incl. $42,977 due to related party (7,165) (11,853)
(2016 -
$21,893)

Equity 241,039 192,337

Site cash costs per pound of copper 1.25 0.97 1.31 1.06
produced (net of precious metal
credits)
(US$)

Total cash costs per pound of copper 1.62 1.45 1.74 1.49
sold (net of precious metal
credits)
(US$)


Realized Copper Price (US$) 2.91 2.15 2.72 2.13



Copper Mountain Mine

During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 19.3 million pounds of copper, 6,500 ounces of gold, and 72,700 ounces of silver which generated $77.1 million in revenue net of treatment and refining charges and pricing adjustments. Site cash costs were US$1.25 per pound of copper produced and total cash costs were US$1.62 per pound sold, net of precious metal credits for the three months ended September 30, 2017; compared to site cash costs of US$0.97 per pound of copper produced and total cash costs of US$1.45 per pound of copper sold, net of precious metal credits for the three months ended September 30, 2016. The increase in revenue is a result of stronger copper prices being realized during the quarter as compared to the same period last year, while the increase in unit costs is a result of the decreased pounds of copper produced due to a lower grade and reduced recoveries combined with a reduction in the precious metal credits as compared to the 2016 comparative period.

Mining activities continued to be focused in the Pit #2, Saddle and Oriole areas for the third quarter of 2017 with a majority of ore coming from the Pit #2 area. Oriole accounted for about 10% of the ore processed during the period. During the quarter, a total of 17.4 million tonnes of material was mined, including 6.8 million tonnes of ore and 10.6 million tonnes of waste for a strip ratio of 1.55:1. Mining costs per tonne during the quarter was $1.73 per tonne moved.

During the quarter, the mill processed a total of 3.8 million tonnes of ore grading 0.32% copper to produce 20.9 million pounds of copper, 6,700 ounces of gold, and 79,300 ounces of silver. Mill head grade was slightly above guidance for the quarter, while copper recoveries were slightly below plan at 77.3% for the quarter. The lower recoveries can be attributable to the coarser grind that resulted from processing more material and from processing some fine-grained ore in the Saddle area. Mill operating time during the quarter averaged 93.5% while mill tonnage averaged 41,158 tpd.

The Company currently has 455 operating employees engaged at the mine site and maintained its excellent safety record of no loss time accidents.

Mine Production Information Three months Nine months
ended ended
September
September 30, 30,


Copper Mountain Mine (100% 2017 2016 2017 2016
Basis)


Mine:
Total tonnes mined (000s Exc17,431 15,92053,600 51,30
ludes ore re-handle from 3
stockpile

)
Ore tonnes mined (000s) 6,843 5,949 18,835 17,34
8

Waste tonnes (000s) 10,587 9,972 34,765 33,95
5

Stripping ratio 1.55 1.68 1.87 1.96

Mill:
Tonnes milled (000s) 3,787 3,678 10,394 10,44
7

Feed Grade (Cu%) 0.32 0.33 0.31 0.33
Recovery (%) 77.3 82.9 77.9 82.4
Operating time (%) 93.5 92.2 89.3 91.6
Tonnes milled (TPD Tonnes 41,200 39,98038,100 38,10
per 0

day
)

Production:
Copper production (000s lbs)20,900 22,00056,200 62,10
0

Gold production (oz) 6,700 8,200 18,500 23,78
0

Silver production (oz) 79,300 81,500206,800220,8
00


Site cash costs per pound of 1.25 0.97 1.31 1.06
copper produced (net of
precious metal credits)
(US$)

Total cash costs per pound of 1.62 1.45 1.74 1.49
copper sold (net of precious
metal credits)
(US$)







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.

The 2017 program was successful in intercepting the high grade mineralization at depth on the eastern end of Pit 2. Drilling south west of Pit 2 continued to intercept mineralization, but was intermittent as drilling moved outside of the western extremities of the current pit limits, indicating that additional drilling may be required.

With the strengthening of the commodity price over the last year, the Company conducted a review of historical data from the New Ingerbelle Pit. The work was encouraging, and therefore, the Company commenced a 5,000 meter drill program for New Ingerbelle deposit, located about 1km west of the Superpit. Drilling to date has been encouraging and will be completed by year end. The goal of the current drill program is to confirm the historical resource which has the potential to add an extra 10 years to the mine life of the operation.

Listed below is the balance sheet and income statement for Q3 2017 as well as details for our conference call schedule:

Copper Mountain Mining Corporation
Condensed Consolidated Interim Statements of Financial Position
(Unaudited in thousands of Canadian dollars)



September December
30, 31,
2016
2017
$ $

Assets

Current assets
Cash and cash equivalents 43,645 31,409
Accounts receivable and prepaid expenses 20,336 26,048
Inventory 56,601 48,465

120,582 105,922

Reclamation bonds 8,228 8,232
Property, plant and equipment 429,389 463,080
Low grade stockpile 92,093 70,556

650,292 647,790
Liabilities

Current liabilities
Accounts payable and accrued liabilities 35,434 36,488
Amounts payable to related parties 42,977 22,653
Current portion of long-term debt 48,341 46,415
Current tax liability 995 1,157
127,747 106,713

Electricity deferral 5,311 15,385
Decommissioning and restoration provision 5,836 6,312
Interest rate swap liability 3,427 4,088
Long-term debt 266,932 319,759
409,253 452,257

Equity
Attributable to shareholders of the
Company:


Share capital 195,071 194,208
Contributed surplus 15,615 14,773
Accumulated deficit (42,172) (73,656)
168,514 135,325
Non-controlling interest 72,525 60,208
Total equity 241,039 195,533

650,292 647,790


Three months Nine months
ended ended


September 30, September 30,
(In thousands of CDN$, other than 2017 2016 2017 2016
per share $ $ $ $
amounts)

Revenues 77,151 72,195 218,393 193,473
Cost of sales Cost of sales (57,601)(68,007(179,311(183,404
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
and concentrate treatment costs.

Gross profit 19,550 4,188 39,082 10,069

Other income and expenses
General and administration (1,307) (1,465)(5,647) (4,444)
Exploration and evaluation - - (35) -
Low grade stockpile write-down - (2,020)- (6,239)
Share based compensation (349) (180) (1,122) (626)
Operating income (loss) 17,894 523 32,278 (1,240)

Low grade stockpile write-down - 2,020 - 6,239
Pricing adjustments on (3,092) (383) (6,287) (7,907)
concentrate and metal
sales

Finance income 4 5 360 143
Finance expense (2,968) (3,240)(9,702) (9,224)
Income tax expense (787) (257) (1,258) (579)

Adjusted (loss) earnings Adjusted 11,051 (1,332)15,412 (12,568)
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.


Pricing adjustments on 3,092 383 6,287 7,907
concentrate and metal
sales

Unrealized (loss) gains on 77 649 (697) (2,671)
interest rate
swap

Low grade stockpile write-down - (2,020)- (6,239)
Unrealized gain (loss) on foreign 12,353 (4,974)22,820 22,930
exchange

Loss on sale of fixed asset - (643) (21) (643)
Net income (loss) and 26,573 (7,937)43,801 8,716
comprehensive income (loss) for
the
period


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

Shareholders of the company 19,538 (6,098)31,484 5,625
Non-controlling interest 7,035 (1,839)12,317 3,091
26,573 (7,937)43,801 8,716

Earnings (loss) per share 0.15 (0.05) 0.24 0.05
Adjusted earnings (loss) per share0.08 (0.01) 0.12 (0.10)
The full set of financial statements and accompanying MD&A are posted on Sedar.com.

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 is being 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 Monday, November 6, 2017 at 7:30 am (Pacific Daylight Time) for management to discuss the third 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): 1-888-231-8191
To participate in the webcast live via your computer go to:

http://event.on24.com/r.htm?e=1523105&s=1&k=A43E370074B0D9D8449DB898A9ECA6F5

Replay call information
Toronto and international: 416.849.0833, passcode 96857152
North America (toll-free): 1.855.859.2056, passcode 96857152

The conference call replay will be available from 10:30 am (PDT) on November 6, 2017, until 11:59 pm PST on November 13, 2017. Participant audio webcast will also be available on the Companys website at 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
Web Site: www.CuMtn.com
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:
Leseranfragen:
Bereitgestellt von Benutzer: irw
Datum: 07.11.2017 - 07:44 Uhr
Sprache: Deutsch
News-ID 566857
Anzahl Zeichen: 21398

contact information:
Town:

Wien

Kategorie:

Business News

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