Copper Mountain Mining Announces Q1 2017 Financial Results

Web Site: www.CuMtn.com
TSX: CMMC

VANCOUVER, April 25, 2017 /CNW/ - Copper Mountain Mining Corporation (TSX: CMMC) (the "Company" or "Copper Mountain") announces first quarter revenues of $74.1 million after pricing adjustments and treatment charges from the sale of 19.0 million pounds of copper, 6,000 ounces of gold, and 64,000 ounces of silver. Total cash cost for the quarter ended March 31, 2017 was US$1.86 per pound of copper sold, net of precious metals credits.


Highlights (100% Basis)

  • Sales for the quarter were $74.1 million from four shipments of concentrate containing 19.0 million pounds of copper, 6,000 ounces of gold, and 64,000 ounces of silver, net of pricing adjustments.

  • Gross profit for the quarter was $11.2 million.

  • EBITDA was $22.8 million for the quarter, compared to $34.0 million in the same quarter for 2016.

  • Cash flow from operating activities before working capital changes was $20.8 million.

  • Cash and cash equivalents were $30.1 million at the end of the quarter.

  • Site cash costs for the 2017 first quarter were US$1.36 per pound of copper produced net of precious metal credits.

  • Total cash costs for the period were US$1.86 per pound of copper sold net of precious metal credits and after all off-site charges.

  • Realized prices on metal sales were US$2.65 per pound of copper, US$1,217 per ounce of gold and US$17.30 per ounce of silver.

 

Jim O'Rourke, President and CEO of Copper Mountain, remarked "During the first quarter of 2017, the mining rate averaged 199,600 tpd moved or 10.5% above plan.  This extra mine production continues to strengthen the mine plan and enhances the ore release flexibility.  This strong mine performance provides opportunities to better benefit from the improved metal prices".

As reported earlier, mining activities were mainly focused in the Pit #2 and the Saddle areas for the first quarter of 2017.  During the quarter a total of 18.0 million tonnes of material was mined, including 5.7 million tonnes of ore and 12.3 million tonnes of waste for a strip ratio of 2.16:1.  High equipment mechanical availability was maintained during the quarter which helped contribute to the above average mining rates of 199,600 tonnes per day moved, well above our 2017 mining guidance rate of 180,000 tonnes per day moved.

During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.31% copper to produce 18.1 million pounds of copper, 5,900 ounces of gold, and 64,300 ounces of silver. Mill head grade was slightly above guidance for the quarter, while copper recoveries were slightly below plan at 79% for the quarter because of processing some fine-grained ore in the saddle area. This is a small area of the pit that was mined mid quarter and recoveries returned back in line with the plan.  Mill operating time during the quarter averaged 92%  and the mill achieved an average throughput rate of 37,350 tpd during the quarter.

Summary Financial Results


Three months ended
March 31,

(In thousands of CDN$, other than per share and per pound amounts)

2017

2016


$

$




Revenues

74,096

58,726

Cash Flow from operating activities before working capital items

20,843

15,161

Gross profit

11,211

1,564

Operating income (loss)

7,971

(450)

Net income

7,492

19,098

Net income per share

$0.04

$0.11

EBITDA

22,819

34,002

Adjusted EBITDA

16,030

7,194




Cash and cash equivalents

30,126

1,761

Accounts Receivable

26,044

16,865

Working capital (incl. $30,745 due to related party (2016 - $13,724)

(7,165)

(13,946)

Equity

203,460

195,348




Copper produced (000's lbs)

18,100

19,000

Gold produced (oz)

5,900

7,600

Silver produced (oz)

64,300

64,700




Copper sold (000's lbs)

19,000

18,100

Gold sold (oz)

6,000

6,900

Silver sold (oz)

64,000

61,200

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

1.36

1.16

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

1.86

1.61

Realized Copper Price (US$)

2.65

2.10

 

During the period the Company recognized revenues of $74.1 million, net of pricing adjustments and treatment charges based on an average realized copper price of US$2.65 per pound; compared to revenues of $58.7 million net of pricing adjustments and an average copper price of US$2.10 per pound for the period ended March 31, 2016. Gross profit for the quarter was $11.2 million as compared to a gross profit of $1.6 million for the period ended March 31, 2016.  The increase in revenues and gross profit for Q1 2017 is due to the increase in the sales price of copper along with more pounds of copper being sold as compared to the same period in 2016.

The Company reported net income of $7.1 million or $0.04 per share for the three months ended March 31, 2017, compared to net income of $18.9 million or $0.11 per share for the three months ended March 31, 2016. The decrease in net income for the current quarter compared to the same quarter in 2016 is largely attributable to the non-cash unrealized foreign exchange gain of $25.1 million in 2016 that was related to the Company's US dollar denominated debt.

Site cash costs were US$1.36 per pound of copper produced and total cash costs were US$1.86 per pound sold, net of precious metal credits for the three months ended March 31, 2017; compared to site cash costs of US$1.16 per pound of copper produced and total cash costs of US$1.61 per pound of copper sold, net of precious metal credits for the three months ended March 31, 2016. The increase in site costs for the three months ended March 31, 2017 as compared to the three months ended March 31, 2016 are the result of a 4% increase in power costs, an increase in the cost of fuel, an increased use of more expensive wet hole explosives due to wet drill hole condition in the area of the pit mined during the quarter, and the timing of mine and mill maintenance projects.

Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:

Summarized Balance Sheet


(In thousands of Canadian dollars)



March 31,

2017

December 31,

2016


$

$

Assets



Cash

30,127

31,409

Accounts Receivable and prepaids

26,044

26,048

Inventory

52,355

48,465

Property, plant and equipment

451,053

463,080

Other Assets

84,929

78,788


644,508

647,790

Liabilities



Accounts payable and accrued liabilities

32,832

36,488

Amounts payable to related parties

30,745

22,653

Current portion of long-term debt

51,740

46,415

Electricity deferral

11,058

15,385

Tax liability

371

1,157

Decommissioning and restoration provision

6,474

6,312

Interest rate swap liability

4,317

4,088

Long-term debt

303,508

319,759


441,045

452,257

Equity



Share capital

194,588

194,208

Contributed surplus

15,206

14,733

Retained earnings (deficit)

(68,933)

(73,656)

Non-controlling interest

62,602

60,208

Total equity

203,463

195,533


644,508

647,790


 

Summarized Income Statement



(In thousands of Canadian dollars, other than per share and per pound amounts)

Three months ended
March 31,


2017

2016


$

$

Revenues

74,096

58,726

Cost of sales1

(62,885)

(57,162)

Gross profit

11,211

1,564




Other income and expenses



General and administration

(2,682)

(1,780)

Exploration and evaluation  

(35)

-

Share based compensation

(523)

(234)

Operating income

7,971

(450)




Pricing adjustments on concentrate and metal sales

(3,976)

(4,226)

Finance income

145

97

Finance expense

(3,437)

(3,131)

Current resource tax expense

(375)

(170)

Adjusted earnings2

328

(7,880)




Pricing adjustments on concentrate and metal sales

3,976

4,226

Unrealized loss on interest rate swap

(358)

(2,566)

Unrealized gain on foreign exchange

3,171

25,148

Net income and comprehensive income for the period

7,117

18,928




Net income and comprehensive income attributable to:



Shareholders of the company

4,723

13,617

Non-controlling interest

2,394

5,311


7,117

18,928




Earnings per share

$0.04

$0.11

Adjusted earnings per share

$0.00

($0.07)




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


_______________________________
1 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.

2 Adjusted 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.

 

About Copper Mountain Mining Corporation:

Copper Mountain's 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 property's full development potential.  Additional information is available on the Company's web page at www.CuMtn.com.


The conference call and audio webcast will be held on Tuesday, April 25, 2017 at 7:30 am (Pacific Standard Time) and 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=1396431&s=1&k=67F97D9094AA01C7BA6587307E6DA50A 

Replay call information

Toronto and international: 416-849-0833 Passcode: 95448533

North America (toll-free): 1-855-859-2056 Passcode: 95448533

The conference call replay will be available from 10:30 am (PST) on Tuesday, April 25, 2017, until 11:59 pm PST on Tuesday, May 9th, 2017.

Participant audio webcast will also be available on the company's website at http://www.cumtn.com

 

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

"Rod Shier" 

Rodney A. Shier, CA.
Chief Financial Officer

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.

SOURCE Copper Mountain Mining Corporation

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

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