Copper Mountain Mining Announces Q3 2018 Financial Results

(firmenpresse) -
Copper Mountain Mining Announces Q3 2018 Financial Results

Vancouver, British Columbia - October 31, 2018 - Copper Mountain Mining Corporation (TSX: CMMC | ASX:C6C) (the Company or Copper Mountain - http://www.commodity-tv.net/c/search_adv/?v=298551 ) announces third 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 .

Third quarter 2018 highlights:

- Production at the Copper Mountain Mine was 22.0 million pounds of copper equivalent in the third quarter of 2018, which includes 18.3 million pounds of copper, 7,500 ounces of gold and 64,900 ounces of silver and in line with expectations.
- Company on track to achieve 2018 annual production guidance of 80 million pounds of copper (+/-5%) with the expectation of a strong fourth quarter.
- Revenue for the third quarter 2018 was $60.7 million, from the sale of 17.6 million pounds of copper, 6,300 ounces of gold, and 62,500 ounces of silver, net of pricing adjustments.
- Increased mineral reserves at the Copper Mountain Mine to 210 million tonnes0F Includes low-grade stockpile.
grading 0.26% copper, 0.08 grams per tonne gold, and 0.89 grams per tonne silver for 1.2 billion pounds of copper, 504,000 ounces of gold and 6.0 million ounces of silver.
- Positive feasibility study results for the Eva Copper Project demonstrated an after-NPV of US$256 million at an 8% discount rate and total copper production of 959 million pounds over a 12-year mine life.
- Robust preliminary economic assessment (PEA) results for New Ingerbelle demonstrated an after-tax Net Present Value (NPV) of US$394 million at an 8% discount rate and total copper production of 768 million pounds over a 12-year mine life.

Gil Clausen, President and CEO of Copper Mountain, remarked This quarter was an exceptionally busy quarter for Copper Mountain as we delivered on all of the project milestones as promised. We completed the phase 2 drilling program at New Ingerbelle and subsequently announced an updated mineral resource along with a base case mine development and production PEA which demonstrated strong economics. We also announced solid feasibility study results for our Eva Copper Project in Australia, which exhibited robust economics and is expected to produce over 120 million pounds of copper annually in the early years of its mine life.

Mr. Clausen added, We will continue to focus on ensuring Copper Mountain produces predictably and reliably as it has year to date. Production in the fourth quarter is forecast to be strong as we get back to mining higher grade ore, reduce stripping and we do not anticipate any of the non-recurring items that impacted the third quarter.

Summary Financial Results

0BQuarter Results & Highlights 1BThree 3BNine months
(100%) months ended ended


2BSeptember 4BSeptember 30,
30,


5B(In thousands of CDN$, other 2018 7B2017 8B2018 2017
than per share and per pound $ $ $ $
amounts)


9BRevenue 10B60,711B77,112B222,13B218,3
20 51 870 93

14BCash flow from operations befo15B1,1816B31,517B47,218B71,19
re working capital 9 70 06 9
changes

19BGross profit (Loss) - 20B(9,521B19,522B17,423B39,08
74) 50 10 2

24BEBITDA1F Earnings before 6,882 42,934 25B40,926B90,93
interest, taxes, depreciation 19 9
and
amortization.
Refer to the Non-GAAP
Performance measures section of
this
MD&A
.

27BAdjusted earnings (loss)2F Adj28B(8,329B11,030B5,2031B15,41
usted earnings (loss) is a 10) 51 8 2
non-GAAP financial measure
which removes unrealized
gains/losses on

interest rate swaps, pricing
adjustments on concentrate
metal sales and

foreign currency gains/losses.

32BAdjusted earnings (loss) per 33B(0.034B0.0835B0.0336B0.12
share 4
3F Calculated by dividing the tot)
al adjusted
earnings
by the weighted average number
of shares outstanding under the
basic
method.


37BCash and cash equivalents 38B41,639B43,64
90 5

40BAccounts receivable 41B26,142B20,33
30 6

43BTotal cash and cash 44B67,845B63,98
equivalents and accounts 20 1
receivable

46BEquity 47B319,48B241,0
951 39

49BTotal pounds of copper sold 50B17,651B19,352B59,253B55,90
(000s 00 00 00 0

lbs)
54BTotal ounces of gold sold (oz)55B6,3056B6,5057B19,158B18,80
0 0 00 0

59BTotal ounces of silver sold 60B62,561B72,762B213,63B199,4
(oz) 00 00 100 00


64BAverage realized copper price 65B2.7766B2.9167B3.0368B2.72
(US$)



The Company recognized revenue of $60.7 million in Q3 2018 on the sale of copper concentrates net of treatment charges. Third quarter revenue was impacted by a shipping delay at the Port of Vancouver over the quarter-end which resulted in 1.1 million pounds of copper, 440 ounces of gold, and 4,000 ounces of silver not being recorded in Q3 2018. This revenue will be recognized in Q4 2018. The decrease in revenue in the third quarter was also the result of lower realized copper prices, lower quantities of metal sold and negative provisional pricing adjustments. Pricing adjustments totaled negative $2.4 million and reflects a weakening of copper prices during the quarter and resulted in downward adjustments for shipments not yet finalized at the period end. This decrease was partly offset by a higher gold grade and recovery during the quarter.

At the end of Q3 2018, the Company recorded an increase in accounts receivable primarily attributable to a shipping delay at the Port of Vancouver over the quarter-end for which the Company did not receive payment of $19.2 million from the September shipment until October 3, 2018. This cash, if received in the quarter, would have increased the quarter-end cash balance to $60.9 million.

The Company recorded higher Q3 2018 operating costs as a result of increased cost of sales of $70.3 million. The increase is largely due to a $5.3 million inventory adjustment to the low-grade stockpile. This adjustment was necessary to record the low-grade stockpile at net realizable value due to the decline in copper price. Additionally, Q3 2018 operating costs reflect increases mainly associated with timing of planned major mine maintenance, fuel unit costs, and other consumable unit costs as compared to Q3 2017.

Exploration expenditures for the quarter were $2.9 Mio, which includes both exploration in Australia and British Columbia.

The Copper Mountain Mine produced 22.0 million pounds of copper equivalent which is comprised of 18.3 million pounds of copper, 7,500 ounces of gold and 64,900 ounces of silver during Q3 2018. Lower copper production in Q3 2018 was as forecast and within expectations of the 2018 production plan. Gold production was higher quarter-over-quarter and year-over-year on higher gold grades and improved recoveries after installation of a flash flotation circuit in the concentrator. Copper grades and therefore copper production is expected to improve in the fourth quarter of 2018.

Site cash costs for Q3 2018 were US$1.78 per pound of copper produced, net of precious metal credits, and total cash costs were US$2.25 per pound sold, net of precious metal credits. Site cash costs and total cash costs were higher primarily due to lower copper production and sales as a result of lower head grades in the quarter, as planned, the $5.3 million inventory adjustment to the low-grade stockpile, and the shipping delay at the Port of Vancouver which decreased metal sales by 1.1 million pounds of copper, 440 ounces of gold, and 4,000 ounces of silver. As production and sales are expected to be higher in the fourth quarter of 2018, site cash costs and total cash costs are expected to decrease.

The Company is on track to meet full year guidance for copper production as year-to-date production has been in-line with the plan and production is expected to be strong in the fourth quarter. The Company maintains 2018 annual production guidance of 80 million pounds of copper (+/- 5%).

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

69BMine Production Information Three months Nine months
ended ended
September
September 30, 30,


70BCopper Mountain Mine (100% 71B2018 72B20173B201874B201
Basis) 7 7


75BMine:
Total tonnes mined (000s4F E77B18,5078B17,79B54,680B53,
xcludes ore re-handle from 3 431 06 600
stockpile

)
Ore tonnes mined (000s) 82B5,61283B6,884B16,185B18,
43 59 835

Waste tonnes (000s) 87B12,8988B10,89B38,490B34,
1 587 46 765

Stripping ratio 92B2.30 93B1.594B2.3895B1.8
5 7


96BMill:
Tonnes milled (000s) 98B3,80299B3,7100B10,101B10
87 661 ,394

Feed Grade (Cu%) 103B0.28104B0.105B0.3106B0.
32 1 31

Recovery (%) 108B79.1109B77110B79.111B77
.3 4 .9

Operating time (%) 113B92.7114B93115B91.116B89
.5 5 .3

Tonnes milled (TPD5F Tonnes 118B41,3119B41120B39,121B38
per 00 ,200 100 ,100

calendar day
)

122BProduction:
Copper production (000s lbs)124B18,3125B20126B58,127B56
00 ,900 200 ,200

Gold production (oz) 129B7,50130B6,131B20,132B18
0 700 100 ,500

Silver production (oz) 134B64,9135B79136B211137B20
00 ,300 ,200 6,800


138BSite cash costs per pound 139B1.78140B1.141B1.5142B1.
of copper produced (net of 25 3 31
precious metal credits)
(US$)

143BTotal cash costs per pound 2.25 1.62 144B1.9145B1.
of copper sold (net of 6 74
precious metal credits)
(US$)

Q3 2018 Financial and Operating Results Conference Call and Webcast
The Company will hold a conference call on Wednesday, October 31, 2018 at 7:30 am (Pacific Standard Time) for management to discuss the Q3 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 live via computer visit the Companys website at www.cumtn.com or https://event.on24.com/wcc/r/1833337/29A6E0EF562FD710672ED8952756F33F

Replay information
Toronto and international: 416-849-0833
Passcode: 9499185
North America (toll-free): 1-855-859-2056
Passcode: 9499185

The conference call replay will be available from 10:30 am (PST) on October 31, 2018 until 20:59 pm PST on November 7, 2018. An archive of the audio webcast will also be available on the companys website at 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 397,000 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)
September December
30, 31,

2018
$ 2017
$

Assets

Current assets
Cash and cash equivalents 41,690 45,133
Accounts receivable and prepaid 26,130 29,314
expenses


Inventory 58,034 68,135

125,854 142,582

Deferred acquisition costs - 1,121
Reclamation bonds 8,744 8,228
Deferred tax assets 14,097 10,956
Property, plant and equipment 446,591 414,041
Low grade stockpile 105,860 91,021

701,146 667,949
Liabilities

Current liabilities
Accounts payable and accrued 27,313 42,122
liabilities


Amounts payable to related parties 67,751 43,633
Current portion of long-term debt 55,127 48,649
Current tax liability 13 1,285
150,204 135,689

Provisions 6,540 6,521
Interest rate swap liability 696 2,081
Long-term debt 223,755 258,373
381,195 402,664

Equity
Attributable to shareholders of the
Company:


Share capital 262,622 195,670
Contributed surplus 16,918 15,724
Accumulated other comprehensive loss (3,219) -
Accumulated deficit (33,044) (25,693)
243,277 185,701
Non-controlling interest 76,674 79,584
Total equity 319,951 265,285

701,146 667,949

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

Three months Nine months
ended September ended September
30, 30,

2018 2017 2018 2017
$ $ $ $

Revenue 60,720 77,151 222,870 218,393
Cost of sales (70,294)(57,601)(205,460)(179,311)
Gross profit (loss) (9,574) 19,550 17,410 39,082

Other income and expenses
General and administration (2,160) (1,307) (8,225) (5,647)
Exploration and evaluation - - - (35)
Share based compensation (387) (349) (1,274) (1,122)
Operating (loss) income (12,121)17,894 7,911 32,278

Finance income 134 4 476 360
Finance expense (3,602) (2,968) (10,963) (9,702)
Unrealized gain (loss) on 195 77 1,197 (697)
interest rate
swap

Foreign exchange gain (loss) 5,419 12,353 (9,042) 22,820
Income (loss) before tax (9,975) 27,360 (10,421) 45,059

Current resource tax 59 (787) (608) (1,258)
recovery
(expense)

Deferred income and resource 4,850 - 3,135 -
tax
recovery

Net income (loss) (5,066) 26,573 (7,894) 43,801

Other comprehensive loss
Foreign currency translation (2,684) - (3,219) -
adjustment

Total comprehensive income (l(7,750) 26,573 (11,113) 43,801
oss)



Net income (loss)
attributable
to:

Shareholders of the Company (4,289) 19,538 (7,351) 31,484
Non-controlling interest (777) 7,035 (543) 12,317
(5,066) 26,573 (7,894) 43,801
Earnings (loss) per share:
Basic (0.02) 0.15 (0.04) 0.24
Diluted (0.02) 0.14 (0.04) 0.23

Weighted average shares 188,116 133,298 166,939 133,070
outstanding, basic
(thousands)

Weighted average shares 191,435 136,853 170,796 133,307
outstanding, diluted
(thousands)

Shares outstanding at end of 188,170 133,629 188,170 133,629
the period
(thousands)
Copper Mountain Mining Corporation
Condensed Consolidated Interim Statements of Cash Flows
For the Three and Nine Months Ended September 30, (Unaudited in thousands of Canadian dollars)
Three months Nine months
ended ended
September September
30, 30,

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

Net (loss) income for the (5,066)26,573 (7,894) 43,801
period


Adjustments for:
Gain on disposal of fixed - (4) - (25)
assets

Depreciation 13,389 12,610 40,853 36,538
Unrealized foreign exchange (6,079)(10,849)6,447 (20,636)
(gain)
loss

Unrealized (gain) loss on (195) (77) (1,197) 697
interest rate
swap

Deferred income and (4,849)- (3,141) -
resource tax
expense

Finance expense 3,602 2,968 10,963 9,702
Share based compensation 387 349 995 1,122
1,189 31,570 47,026 71,199
Net changes in (20,839(20,461)(24,537)(31,370)
working capital )
items

Net cash (used in) from (19,65011,109 22,489 39,829
operating )
activities


Cash flows from investing
activities

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

Transaction costs (54) - (2,291) -
Share issue costs - - (364) -
Deferred stripping (3,092)- (15,555)(1,485)
activities

Purchase of property, plant (4,216)(1,073) (16,087)(2,760)
and
equipment

(Purchase) refund of (387) - (387) -
reclamation
bond

Proceeds on disposal of - - - 52
fixed
assets

Net cash used in investing (7,749)(1,073) (5,569) (4,193)
activities


Cash flows from financing
activities

Proceeds on exercise of 26 387 224 691
options and
warrants

Advances from 14,383 13,574 28,412 21,618
non-controlling
interest

Payments made to (899) - (2,367) -
non-controlling
interest

Loan principal paid (12,427(11,981)(34,320)(29,064)
)

Interest paid (2,275)(1,944) (8,057) (8,441)
Finance lease payments (1,277)(2,195) (5,266) (6,232)
Net cash used in financing (2,469)(2,159) (21,374)(21,428)
activities


Effect of foreign exchange (532) (1,336) 1,011 (1,972)
rate changes on cash and
cash
equivalents


(Decrease) increase in cash (30,4006,541 (3,443) 12,236
and cash )
equivalents


Cash and cash equivalents - 72,090 37,104 45,133 31,409
Beginning of
period


Cash and cash equivalents - 41,690 43,645 41,690 43,645
End of
period

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Datum: 31.10.2018 - 13:36 Uhr
Sprache: Deutsch
News-ID 583301
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contact information:
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