Copper Mountain Mining Announces Q2 2018 Financial Results

(firmenpresse) -

Copper Mountain Mining Announces Q2 2018 Financial Results
Vancouver, British Columbia - August 7, 2018 - Copper Mountain Mining Corporation (TSX: CMMC | ASX:C6C) (the Company or Copper Mountain - http://www.commodity-tv.net/c/search_adv/?v=298239 ) announces second quarter 2018 financial results. All currency is in Canadian dollars, unless otherwise stated. All results are reported on a 100% basis. The Companys Financial Statements and Management Discussion & Analysis (MD&A) are available at www.CuMtn.com and www.sedar.com.

Second quarter 2018 highlights:

- Production at the Copper Mountain Mine was 23.1 million pounds of copper equivalent in the second quarter of 2018, which includes 20.0 million pounds of copper, 6,500 ounces of gold and 68,400 ounces of silver.
- Revenue for the second quarter of 2018 was $84.2 million, from the sale of 19.9 million pounds of copper, 6,300 ounces of gold, and 70,000 ounces of silver, net of pricing adjustments.
- Cash flow from operations for the second quarter of 2018 was $40.1 million.
- EBITDA of $22.6 million for the second quarter of 2018.
- Site cash costs for the second quarter of 2018 were US$1.40 per pound of copper produced net of precious metal credits.
- Total cash costs for the second quarter of 2018 were US$1.80 per pound of copper sold net of precious metal credits and all off-site charges.

Gil Clausen, President and CEO of Copper Mountain, remarked 2018 continues to be a solid year for Copper Mountain. We had another strong quarter with revenue up 25% and cash flow up 55% year over year. Production was up 16% and we are on track to achieve our annual guidance. We ended the quarter with a robust cash position and our focus remains on protecting our balance sheet while advancing our organic growth.

Mr. Clausen continued, In the second quarter we commenced our phase 2 drilling program at New Ingerbelle, which has already returned very encouraging results. We intend to complete an updated mineral resource at New Ingerbelle following the drilling campaign in the third quarter. The third quarter will also have other value-enhancing catalysts including an updated reserve, resource and production plan at the Copper Mountain Mine and an update on our Eva Copper Project, located in Queensland, Australia.

Summary Financial Results

Three months Six months
ended ended


June 30, June 30,
(In thousands of CDN$, other 2018 2017 2018 2017
than per share and per pound $ $ $ $
amounts)


Revenue 84,204 67,146 162,150141,242
Cash flow from operations before 27,754 18,786 45,837 39,629
working capital
changes

Cash flow from operations 40,121 25,870 42,139 28,270
Gross profit - 20,672 8,321 26,984 19,532
Operating income 16,700 6,413 20,032 14,384
EBITDA Earnings before interest, 22,552 25,186 34,037 48,005
taxes, depreciation and
amortization.
Refer to the Non-GAAP
Performance measures section

in the Companys Q2 2018 MD&A.

Adjusted EBITDA 21,830 19,108 50,383 35,138
Adjusted earnings Adjusted 2,916 4,033 13,518 4,361
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 per share Calcu0.02 0.03 0.08 0.03
lated by dividing the total
adjusted earnings by the
weighted average number of
shares outstanding under the
basic
method.


Cash and cash equivalents 72,090 37,104
Accounts receivable 15,849 17,001
Total cash and cash equivalents 87,939 54,105
and accounts
receivable

Equity 328,195213,857

Total pounds of copper sold 19,900 17,600 41,600 36,600
(000s

lbs)
Total ounces of gold sold (oz) 6,300 6,300 12,800 12,300
Total ounces of silver sold (oz) 70,000 62,700 150,600126,700

Average realized copper price 3.12 2.58 3.15 2.62
(US$)



During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 19.9 million pounds of copper, 6,300 ounces of gold, and 70,000 ounces of silver which generated over $84 million in revenue net of treatment and refining charges and pricing adjustments, a 25% increase over Q2 2017. Site cash costs were US$1.40 per pound of copper produced and total cash costs were US$1.80 per pound sold, net of precious metal credits for the three months ended June 30, 2018.

Mining activities for the second quarter of 2018 were mainly focused in the Pit #2, Saddle and the Oriole areas. During the quarter a total of 19.5 million tonnes of material was mined, including 4.0 million tonnes of ore and 15.5 million tonnes of waste for a strip ratio of 3.8:1. During the quarter mining rates of 215,000 tonnes per day moved were achieved.

During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.34% copper to produce 20.0 million pounds of copper, which is 16% higher than the second quarter of 2017. Gold and silver production in the second quarter was 6,500 ounces and 68,400 ounces, respectively. Mill head grade for the second quarter averaged 0.34% copper, above 2018 guidance of 0.31% copper. Copper recoveries were also above plan at 81%. Mill operating time during the quarter averaged 89% and the mill achieved an average throughput rate of 37,000 tonnes per calendar day during the quarter and 41,500 tonnes per operating day. The concentrator was down approximately five days due to the replacement of two mill transformers and a SAG mill liner change.

Exploration expenditures for the quarter were $899,335, which includes both exploration in Australia and British Columbia.

The following table provides a summary of the operating results from the mine for the three and six months ended June 30, 2018:

Mine Production Information Three months Six months
ended ended June
30,
June 30,

Copper Mountain Mine (100% 2018 2017 2018 2017
Basis)


Mine:
Total tonnes mined (000s Exc19,519 18,20736,103 36,169
ludes ore re-handle from
stockpile

)
Ore tonnes mined (000s) 4,030 6,293 10,548 11,991
Waste tonnes (000s) 15,490 11,91425,555 24,178
Stripping ratio 3.84 1.89 2.42 2.03

Mill:
Tonnes milled (000s) 3,368 3,246 6,859 6,608
Feed Grade (Cu%) 0.34 0.31 0.33 0.31
Recovery (%) 81 78 80 78
Operating time (%) 89 82 91 87
Tonnes milled (TPD Tonnes 37,000 35,70037,900 36,500
per
day

)

Production:
Copper production (000s lbs)20,000 17,20039,900 35,300
Gold production (oz) 6,500 5,900 12,600 11,800
Silver production (oz) 68,400 63,200146,300127,50
0


Site cash costs per pound of 1.40 1.31 1.41 1.35
copper
produced
Net of precious metals credits
(US$)
Total cash costs per pound of 1.80 1.74 1.83 1.80
copper
sold
Net of precious metals credits
(US$)


Guidance
Production in the first half of 2018 was on track as planned. Production in the third quarter is forecasted to be lower than the second quarter as a result of planned lower grades being mined while fourth quarter production is forecasted to be the strongest quarter in 2018. The Companys 2018 annual production guidance remains unchanged at 80 million pounds of copper (+/- 5%).

Q2 2018 Financial and Operating Results Conference Call and Webcast
The Company will hold a conference call on Tuesday, August 7, 2018 at 7:30 am (Pacific Standard Time) for management to discuss the Q2 2018 Financial and Operating Results.

Live Dial-in information
Toronto and international: 647-427-7450
North America (toll-free): 1-888-231-8191
To participate in the webcast go to: https://event.on24.com/wcc/r/1791161/D0B739B616FCF077D8F8CCDB33DAE1AA

Replay call information
Toronto and international: 416-849-0833 Passcode: 3669918
North America (toll-free): 1-855-859-2056 Passcode: 3669918

The conference call replay will be available from 10:30 am (PST) on August 7th, until 20:59 pm PST on August 14th, 2018. The audio webcast will also be available on the companys website at http://www.cumtn.com.

About Copper Mountain Mining Corporation
Copper Mountains flagship asset is the 75% owned Copper Mountain mine located in southern British Columbia near the town of Princeton. The Copper Mountain mine produces about 100 million pounds of copper equivalent per year with a large resource that remains open laterally and at depth. Copper Mountain also has the permitted, development stage Eva Copper Project in Queensland, Australia and an extensive 379,000 hectare highly prospective land package in the Mount Isa area.

Additional information is available on the Companys web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

Gil Clausen-

Gil Clausen, P.Eng.
Chief Executive Officer

For further information, please contact:
Letitia Wong, Vice President Corporate Development & Investor Relations
604-682-2992 Email: letitia.wong(at)cumtn.com or
Dan Gibbons, Investor Relations 604-682-2992 ext. 238 Email: Dan(at)CuMtn.com

Website: www.CuMtn.com
In Europe:
Swiss Resource Capital AG
Jochen Staiger
info(at)resource-capital.ch
www.resource-capital.ch

Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and forward-looking information (together, forward-looking statements) within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as plans, expects, estimates, intends, anticipates, believes or variations of such words, or statements that certain actions, events or results may, could, would, might, occur or be achieved. Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance and opportunities to differ materially from those implied by such forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include the successful exploration of the Companys properties in Canada and Australia, the reliability of the historical data referenced in this press relase and risks set out in Copper Mountains public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com. Although Copper Mountain believes that the information and assumptions used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by applicable law, Copper Mountain disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
Copper Mountain Mining Corporation
Condensed Consolidated Interim Statements of Financial Position (Unaudited in thousands of Canadian dollars)
June 30, December
2018 31,
2017
$
$

Assets

Current assets
Cash and cash equivalents 72,090 45,133
Accounts receivable and prepaid expenses 15,849 29,314
Inventory 56,757 68,135

144,696 142,582

Deferred acquisition costs - 1,121
Reclamation bonds 8,356 8,228
Deferred tax assets 9,248 10,956
Property, plant and equipment 454,232 414,041
Low grade stockpile 103,619 91,021

720,151 667,949
Liabilities

Current liabilities
Accounts payable and accrued liabilities 30,946 42,122
Amounts payable to related parties 56,483 43,633
Current portion of long-term debt 48,620 48,649
Current tax liability 368 1,285
136,417 135,689

Provisions 6,397 6,521
Interest rate swap liability 827 2,081
Long-term debt 248,315 258,373
391,956 402,664

Equity
Attributable to shareholders of the
Company:


Share capital 262,582 195,670
Contributed surplus 16,554 15,724
Accumulated other comprehensive loss (535) -
Accumulated deficit (28,755) (25,693)
249,846 185,701
Non-controlling interest 78,349 79,584
Total equity 328,195 265,285

720,151 667,949
Copper Mountain Mining Corporation
Condensed Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss)
For the Three and Six Months Ended June 30, (Unaudited in thousands of Canadian dollars, except for earnings per share)

Three months Six months
ended June ended June
30, 30,

2018 2017 2018 2017
$ $ $ $

Revenue 84,204 67,146 162,150 141,242
Cost of sales (63,532)(58,825)(135,166)(121,710)
Gross profit 20,672 8,321 26,984 19,532

Other income and expenses
General and administration (3,591) (1,658) (6,065) (4,340)
Exploration and evaluation - - - (35)
Share based compensation (381) (250) (887) (773)
Operating income 16,700 6,413 20,032 14,384

Finance income 206 211 342 356
Finance expense (3,847) (3,298) (7,361) (6,734)
Unrealized gain (loss) on 229 (416) 1,002 (774)
interest rate
swap

Foreign exchange (loss) gain (6,385) 7,297 (14,461) 10,467
Income (loss) before tax 6,903 10,207 (446) 17,699

Current resource tax expense (322) (96) (667) (471)
Deferred income and resource (2,943) - (1,715) -
tax
expense

Net income (loss) 3,638 10,111 (2,828) 17,228

Other comprehensive loss
Foreign currency translation (535) - (535) -
adjustment

Total comprehensive income 3,103 10,111 (3,363) 17,228
(loss)




Net income (loss)
attributable
to:

Shareholders of the Company 2,189 7,223 (3,062) 11,946
Non-controlling interest 1,449 2,888 234 5,282
3,638 10,111 (2,828) 17,228
Earnings (loss) per share:
Basic 0.01 0.05 (0.02) 0.09
Diluted 0.01 0.05 (0.02) 0.09

Weighted average shares 177,440 133,087 156,116 132,953
outstanding, basic
(thousands)

Weighted average shares 181,756 135,284 160,560 136,752
outstanding, diluted
(thousands)

Shares outstanding at end of 188,104 133,087 188,104 133,087
the
period
(thousands)

Copper Mountain Mining Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the Three and Six Months Ended June 30, (Unaudited in thousands of Canadian dollars)

Three months Six months
ended June ended June
30, 30,

2017 2017
201$ 2018 $
8
$
$
Cash flows from operating
activities

Net income (loss) for the 3,638 10,111 (2,828) 17,228
year


Adjustments for:
Gain on disposal of fixed - - - (21)
assets

Depreciation 12,008 11,893 27,464 23,928
Unrealized foreign exchange 5,118 (7,197) 12,526 (9,787)
loss
(
gain)
Unrealized (gain) loss on (229) 416 (1,002) 774
interest rate
swap

Deferred income and 2,991 - 1,708 -
resource tax
expense

Finance expense 3,847 3,297 7,361 6,734
Share based compensation 381 266 608 773
27,754 18,786 45,837 39,629
Net changes in 12,367 7,084 (3,698) (10,909)
working capital items


Net cash from operating 40,121 25,870 42,139 28,720
activities


Cash flows from investing
activities

Cash acquired in 29,115 - 29,115 -
acquisition of
Altona

Transaction costs (763) - (2,237) -
Share issue costs (364) - (364) -
Deferred stripping (12,463- (12,463)(1,485)
activities )

Purchase of property, plant (10,532(1,055) (11,871)(1,692)
and )
equipment

Refund of exploration bond - - - 5
Proceeds on disposal of - - - 52
fixed
assets

Net cash from (used in) 4,993 (1,055) 2,180 (3,120)
investing
activities


Cash flows from financing
activities

Proceeds on exercise of 143 - 199 304
options and
warrants

Advances from - - 14,029 8,044
non-controlling
interest

Payments made to (1,469)- (1,469) -
non-controlling
interest

Loan principal paid (9,515)(10,699) (21,893)(17,083)
Interest paid (3,818)(4,270) (5,782) (6,497)
Finance lease payments (1,532)(2,428) (3,989) (4,037)
Net cash used in financing (16,191(17,397) (18,905)(19,269)
activities )


Effect of foreign exchange 599 (441) 1,543 (636)
rate changes on cash and
cash
equivalents


Increase in cash and cash 29,522 6,977 26,957 5,695
equivalents


Cash and cash equivalents - 42,568 30,127 45,133 31,409
Beginning of
period


Cash and cash equivalents - 72,090 37,104 72,090 37,104
End of
period

Unternehmensinformation / Kurzprofil:
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Bereitgestellt von Benutzer: irw
Datum: 07.08.2018 - 18:11 Uhr
Sprache: Deutsch
News-ID 579299
Anzahl Zeichen: 21997

contact information:
Town:

Wien

Kategorie:

Business News

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