Copper Mountain Mining Announces Q4 and Full Year 2018 Financial Results

(firmenpresse) -
Copper Mountain Mining Announces Q4 and Full Year 2018 Financial Results

Vancouver, British Columbia - February 15, 2019 - Copper Mountain Mining Corporation (TSX: CMMC | ASX:C6C) (the Company or Copper Mountain - http://www.commodity-tv.net/c/search_adv/?v=298826) announces fourth quarter and full year 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.

FOURTH QUARTER 2018 AND FULL YEAR 2018 HIGHLIGHTS
- Fourth quarter 2018 production was the strongest quarter of the year, with production increasing 9.7% from the prior year to 24.5 million pounds of copper equivalent (comprised of 20.6 million pounds of copper, 8,124 ounces of gold and 62,711 ounces of silver).
- Full year 2018 production met guidance, with production increasing 4.6% from the prior year to 92.4 million pounds of copper equivalent (comprised of 78.8 million pounds of copper, 28,250 ounces of gold and 273,913 ounces of silver).
- C1 cash costs for the fourth quarter decreased 13% compared to the prior year to US$1.60 per pound of copper produced and full year 2018 C1 cash costs decreased 4% compared to the prior year to US$1.77 per pound of copper produced.
- Revenue for the fourth quarter was $73.1 million from the sale of 19.4 million pounds of copper, 7,475 ounces of gold and 69,761 ounces of silver and revenue for the full year of 2018 was $296.0 million, from the sale of 79.2 million pounds of copper, 26,799 ounces of gold, and 284,086 ounces of silver, net of pricing adjustments.
- Adjusted earnings per share was ($0.01) for the fourth quarter and $0.02 for the year.
- Cash flow from operations for the fourth quarter was $28.8 million and $51.3 million for the full year of 2018.
- In 2018, Mineral Reserves increased at the Copper Mountain Mine, a preliminary economic assessment (PEA) on New Ingerbelle was completed resulting in an after-tax NPV (8%) of US$390 million and a feasibility study was completed for the Eva Copper Project resulting in an after-tax NPV (8%) of US$256 million.

In 2018, we focused on building a strong foundation from which to grow our business, said Copper Mountains President and CEO, Gil Clausen. The Copper Mountain Mine finished the year achieving guidance across all metrics. We are also completing an integrated mine plan which will combine the New Ingerbelle deposit into the Copper Mountain mine plan and may double the mine life. The New Ingerbelle deposit provides the potential to add significant value through the addition of low risk, low cost production, particularly as we evaluate a mill expansion plan, which could allow for increased production levels in our existing mill within our current operating and environmental permits. We expect to complete this integrated life of mine plan and publish a new Technical Report for our Copper Mountain Mine in the first quarter of 2019.

SUMMARY FINANCIAL RESULTS

Results & Highlights (100%) Three months Year ended
ended December 31,


December 31,
(In thousands of CDN$, except 2018 2017 2018 2017
for per share $ $ $ $
amounts)

Financial
Revenue 73,149 85,687 296,019304,080
Gross profit 7,896 20,013 25,306 59,095
Gross profit before depreciation(18,089 34,966 76,352 110,586
1)

Net income (loss) (18,98223,538 (26,87667,339
) )

Earnings (loss) per share - $(0.09)$0.12 $(0.13)$0.36
basic

Adjusted net (loss) income(1) (1,400)25,311 3,377 46,598
Adjusted (loss) earnings per $(0.01)$0.19 $0.02 $0.35
share -
basic

EBITDA(1) (234) 31,564 40,685 122,504
Adjusted EBITDA 17,348 33,337 85,841 90,692
Cash flow from operations 28,777 17,445 51,266 57,274
Cash and cash equivalents - end 46,123 45,133
of
year
1) Non-GAAP performance measure. See Copper Mountains Q4 2018 MD&A for details.

Fourth Quarter 2018 Financial Review

The Company reported a gross profit for Q4 2018 of $7.9 million, compared to $20.0 million for Q4 2017, and a net loss of $19.0 million in Q4 2018, compared to a net income of $23.5 million in Q4 2017. The increase in the net loss from net income was primarily a result of a non-cash unrealized foreign exchange loss of $14.7 million compared to a non-cash unrealized foreign exchange loss of $1.8 million for Q4 2017, a change of approximately $12.9 million, which was primarily related to the Companys debt that is denominated in U.S. dollars. The increase in net loss was also due to lower revenue and higher cost of sales year over year.

The Company recognized revenue of $73.1 million, net of pricing adjustments and treatment charges, on the sale of 19.4 million pounds of copper, 7,475 ounces of gold, and 69,761 ounces of silver and based on an average realized copper price of US$2.81 per pound. This is compared to Q4 2017 revenue of $85.7 million, net of pricing adjustments and treatment charges, on the sale of to 18.1 million pounds of copper, 5,622 ounces of gold and 67,359 ounces of silver and based on an average realized copper price of US$3.12 per pound for Q4 2017. Despite higher sales, lower revenue year over year was a result of a 10% lower realized copper price in Q4 2018 compared to Q4 2017 and a Q4 2018 mark-to-market adjustment of negative $2.4 million compared to a positive mark-to-market adjustment of $10.3 million in Q4 2017.

Cost of sales for Q4 2018 decreased marginally to $65.2 million compared to $65.7 million in Q4 2017, even though more concentrate was sold in Q4 2018 than Q4 2017. This was because Q4 2017 included a $10.8 million write down to the low-grade stockpile, which was included in cost of sales.

Exploration expenditures in Q4 2018 were $1.2 million, which includes exploration in both Australia and British Columbia.

Full Year 2018 Financial Review
The Company reported gross profit in 2018 of $25.3 million, compared to $59.1 million in 2017, and a net loss in 2018 of $26.9 million, compared to a net income of $67.3 million in 2017. The increase in net loss in 2018 from net income in 2017 was primarily a result of a non-cash unrealized foreign exchange loss $23.8 million in 2018, compared to a non-cash unrealized foreign exchange gain of $20.9 million in 2017, a change of approximately $45 million, which was mainly related to the Companys debt that is denominated in U.S. dollars. The increase in net loss was also due to lower revenue and higher cost of sales year over year.

The Company recognized revenue of $296.0 million in 2018, net of pricing adjustments and treatment charges, on the sale of 79.2 million pounds of copper, 26,799 ounces of gold, and 284,086 ounces of silver based on an average realized copper price of US$2.98 per pound. This compares to revenue of $304.1 million in 2017, net of pricing adjustments and treatment charges, on the sale of 73.9 million pounds of copper, 23,969 ounces of gold and 260,493 ounces of silver, based on an average realized price of realized copper price of US$2.82 per pound. As required under IFRS, revenue in 2017 included a positive mark to market adjustment of $10.7 million for unsettled shipments outstanding at year end, as compared to a negative mark to market adjustment of $0.9 million for 2018 unsettled shipments at year end.

Cost of sales for 2018 increased by $26 million to $270.7 million compared to $245.0 million in 2017. This increase was due in small part to higher costs for diesel fuel, maintenance and power, but primarily due to the change in ore stockpile inventory with a $13.1 million decrease in 2018 charged to cost of sales as compared to a $14.0 million increase in 2017 charged to ore stockpile inventory. The drawdown of ore stockpiles in the year is a result of increased development stripping as the Copper Mountain Mine starts to expose higher grade areas of the pit for future years. As required under IFRS, some of these additional costs of stripping are capitalized when the period stripping ratio exceeds the life of mine stripping ratio of 2:1.

Exploration expenditures for the full year of 2018 were $6.5 million which includes exploration in both Australia and British Columbia.


SUMMARY OPERATING RESULTS

Copper Mountain Mine (100% Basis) Q4 Q4 AnnualAnnual
2018 2017 2017

2018
Mine:
Total tonnes mined (000s) 19,730 18,99874,337 72,597
Ore tonnes mined (000s) 4,407 7,370 20,567 26,204
Waste tonnes (000s) 15,323 11,62853,770 46,393
Stripping ratio 3.48 1.58 2.61 1.77

Mill:
Tonnes milled (000s) 3,873 3,692 14,535 14,086
Feed Grade (Cu%) 0.30 0.32 0.31 0.32
Recovery (%) 81.0 75.1 79.8 77.2
Operating time (%) 96.0 93.4 92.6 90.3
Tonnes milled (TPD) 42,098 40,13039,822 38,592

Production:
Copper (000s lbs) 20,628 19,55678,847 75,791
Gold (oz) 8,124 5,206 28,250 23,633
Silver (oz) 62,711 70,384273,913277,094

Sales:
Copper (000s lbs) 19,431 18,09179,195 73,860
Gold (oz) 7,475 5,622 26,799 23,969
Silver (oz) 69,761 67,359284,086260,493

Costs and Prices
Total operating costs (C1) per $1.60 $1.85 $1.77 $1.84
pound of copper produced
(US$)
(1)
All-in-sustaining costs per $1.90 $1.99 $2.13 $2.00
pound of copper produced
(US$)
(1,2)
Average realized copper price $2.81 $3.12 $2.98 $2.82
(US$)

1) Non-GAAP performance measure. See Copper Mountains Q4 2018 MD&A for details.
2) Copper cash costs have been updated to industry recognized metrics of total operating costs (C1) and with the addition of All in Sustaining Costs per pound of copper produced the Company believes this disclosure will present the full cost of copper production associated with the Copper Mountain mine and take steps in further supporting peer group comparability. See the non-GAAP performance measures section of this MD&A for details of these calculations.

Fourth Quarter 2018 Operating Results Review

In Q4 2018, the Copper Mountain Mine produced 20.6 million pounds of copper, 8,124 ounces of gold, and 62,711 ounces of silver compared to 19.6 million pounds of copper, 5,206 ounces of gold, and 70,384 ounces of silver in Q4 2017. Increased recoveries for all metals and a 5% increase in tonnes milled resulted in strong production results for Q4 2018 and the strongest quarter for copper and gold production in 2018. Increased gold production can be attributed to the new flash floatation circuit installed in the second half of 2018.

Total operating costs (C1) for Q4 2018 were US$1.60 per pound of copper produced, 13% lower than the C1 costs for Q4 2017 of US$1.85 per pound of copper produced. The improvement in costs, when compared to the prior year, is related to several factors including 5% higher copper production in the quarter, a 5% decrease in total mine operating costs in Q4 2018, and a weakening of the Canadian dollar to the United States dollar used when translating C1 costs to United States dollars. It should be noted that substantially all of the Companys operating costs are priced in Canadian dollars. The decrease in C1 costs is also affected by the levels of deferred stripping in the period as these excess stripping costs are treated as capital expenditures. Deferred stripping costs are captured in all-in-sustaining costs (AISC) and not included in C1 costs. The total cash value of deferred stripping in Q4 2018 was $4.6 million compared to Nil in Q4 2017.

Full Year 2018 Operating Results Review

In 2018, the Copper Mountain Mine achieved annual copper production guidance, producing 78.8 million pounds of copper, 28,250 ounces of gold, and 273,913 ounces of silver compared to 75.8 million pounds of copper, 23,633 ounces of gold, and 277,094 ounces of silver in 2017. This represents an increase of 4% for copper, 19% for gold and a slight 1% decrease in silver production. Increases for copper and gold production as compared to the prior year is a result of improved recoveries and mill throughput in 2018, offset slightly by lower grades being milled in 2018. Improved recoveries in the mill can be attributed to the installation of the new flash flotation circuit in the third quarter of 2018. Recoveries contributed to strong annual production results which included an increase of total tonnes milled by 3%.

Total C1 costs for 2018 were US$1.77 per pound of copper produced, 4% lower than the C1 costs for 2017 of US$1.84. The improvement in costs per pound is a result of higher copper production in 2018 and slightly lower total mine operating costs when compared to 2017, after taking into account cost associated with increased low-grade stockpile inventories in 2017, as required under IFRS. The decrease in C1 costs was also affected by the levels of deferred stripping in the year as these mining costs are treated as capital expenditures and deferred as required under IFRS. Deferred stripping costs are captured in AISC and not included in C1 costs. The total cash value of deferred stripping in 2018 was $20.2 million, compared to $1.5 million in 2017.

Q4 2018 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST

The Company will hold a conference call on Friday, February 15, 2019 at 7:30 am (Pacific Standard Time) for management to discuss the Q4 2018 financial and operating results.

Live Dial-in Information
Toronto and international: -1 (647) 427-7450
North America (toll-free): -1 (888) 231-8191
To participate in the webcast live via computer go to:
https://event.on24.com/wcc/r/1912233/DA8D8425873C22105A0E0F317371DD61

Replay Call Information
Toronto and international: -1 (416) 849-0833--Passcode: 5973748
North America (toll-free): -1 (855) 859-2056--Passcode: 5973748
The conference call replay will be available from 12:30 pm (PST) on February 15, 2019 until 20:59 pm PST on February 22, 2019. An archive of 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 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

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

Website: www.CuMtn.com

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 release 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
Consolidated Statements of Financial Position
(In thousands of Canadian dollars)

December December
31, 31,
2017
2018
$ $

Assets

Current assets
Cash and cash equivalents 46,123 45,133
Accounts receivable and prepaid 18,923 29,314
expenses


Inventory 55,801 68,135

120,847 142,582

Deferred acquisition costs - 1,121
Reclamation bonds 8,752 8,228
Deferred tax assets 13,980 10,956
Property, plant and equipment 448,237 414,041
Low grade stockpile 109,846 91,021

701,662 667,949
Liabilities

Current liabilities
Accounts payable and accrued 37,494 42,122
liabilities

Amounts payable to related parties 69,026 43,633
Current portion of long-term debt 52,956 48,649
Current tax liability 622 1,285
160,098 135,689

Provisions 6,571 6,521
Interest rate swap liability 601 2,081
Long-term debt 229,001 258,373
Deferred tax liability 2,135 -
398,406 402,664

Equity
Attributable to shareholders of the
Company:


Share capital 263,822 195,670
Contributed surplus 17,378 15,724
Accumulated other comprehensive loss (1,655) -
Accumulated deficit (48,030) (25,693)
231,515 185,701
Non-controlling interest 71,741 79,584
Total equity 303,256 265,285

701,662 667,949


Copper Mountain Mining Corporation
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income
For the Years Ended December 31, 2018 and 2017
(In thousands of Canadian dollars, except for number of and earnings per share)

2018 2017
$ $
Revenue 296,019
304,080
Cost of sales (270,713)(244,985)
Gross profit 25,306 59,095

General and administration (10,990) (6,757)
Property investigation - (35)
Share based compensation (1,605) (2,152)
Income from operations 12,711 50,151

Finance income 582 319
Finance expense (15,564) (13,070)
Unrealized gain (loss) on 716 (87)
interest rate
swap

Foreign exchange (loss) gain (23,788) 20,949
(Loss) income before tax (25,343) 58,262

Current resource tax expense (1,217) (1,879)
Deferred income and resource tax (316) 10,956
(expense)
recovery

Net (loss) income (26,876) 67,339

Other comprehensive loss
Foreign currency translation adjus (1,655) -
tment

Total comprehensive (loss) income (28,531) 67,339

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

Shareholders of the Company (22,337) 47,963
Non-controlling interest (4,539) 19,376
(26,876) 67,339
(Loss) income per share:
Basic $(0.13) $0.36
Diluted $(0.13) $0.35

Weighted average shares 172,201,2133,301,4
outstanding, 95 25
basic

Weighted average shares 172,201,2136,893,4
outstanding, 95 39
diluted

Shares outstanding at end of the 188,170,3134,285,1
year 59 92


Copper Mountain Mining Corporation
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2018 and 2017
(In thousands of Canadian dollars)

2018 2017
$ $
Cash flows from operating
activities

Net (loss) income for the (26,876)67,339
year


Adjustments for:
Depreciation 51,046 51,491
Loss on disposal of fixed - (25)
assets

Unrealized foreign exchange 17,601 (20,155)
loss
(gain)

Unrealized (gain) loss on (716) 87
interest rate
swap

Deferred income and 310 (10,956)
resource tax expense
(recovery)

Finance expense 15,564 13,070
Share based compensation 1,327 1,945
58,256 102,796
Net changes in (6,990) (45,522)
working capital items


Net cash from operating 51,266 57,274
activities


Cash flows from investing
activities

Cash acquired in 29,115 -
acquisition of
Altona

Transaction costs for (2,291) -
Altona
transaction

Share issue costs for (364) -
Altona
transaction

Deferred stripping (20,185)(1,485)
activities

Deferred acquisition costs - (1,121)
Development of property, (21,537)(3,779)
plant and
equipment

Purchase of reclamation bond (396) -
Proceeds on disposal of - 52
fixed
asset

Net cash used in investing (15,658)(6,333)
activities


Cash flows from financing
activities

Proceeds on exercise of 224 1,179
options and
warrants

Contributions from 28,412 21,618
non-controlling
interest

Payments made to (3,304) -
non-controlling
interest

Loan principal paid (44,074)(37,361)
Interest paid (12,122)(12,521)
Finance lease payments (6,511) (8,218)
Net cash used in financing (37,375)(35,303)
activities


Effect of foreign exchange 2,757 (1,914)
rate changes on cash and
cash
equivalents


Increase in cash and cash 990 13,724
equivalents


Cash and cash equivalents - 45,133 31,409
Beginning of
year

Cash and cash equivalents - 46,123 45,133
End of
year

Unternehmensinformation / Kurzprofil:
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Bereitgestellt von Benutzer: irw
Datum: 15.02.2019 - 12:30 Uhr
Sprache: Deutsch
News-ID 588149
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contact information:
Town:

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Kategorie:

Business News

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