Copper Mountain Mining Production Improvements Strengthen Q2 Financial 2016 Results

Web Site: www.CuMtn.com
TSX: CUM

VANCOUVER, Aug. 8, 2016 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces second quarter revenues of $62.6 million after pricing adjustments and treatment charges from the sale of 24.9 million pounds of copper equivalent (including 20.1 million pounds of copper, 7,200 ounces of gold, and 63,700 ounces of silver).  Total cash cost for the quarter ended June 30, 2016 was US$1.58 per pound of copper sold, net of precious metals credits.


Highlights (100% Basis)

  • Copper, gold and silver production for the second quarter of 2016 at Copper Mountain Mine was 26.5 million pounds of copper equivalent which includes 21.2 million pounds of copper, 7,980 ounces of gold and 74,600 ounces of silver.

  • Revenues for the second quarter of 2016 were $62.6 million from the sale of 20.1 million pounds of copper, 7,200 ounces of gold, and 63,700 ounces of silver, net of pricing adjustments.

  • Gross profit for the quarter was $2.4 million.  
  • EBITDA was $13.1 million for the quarter, compared to $14.8 million in the same quarter for 2015.

  • Mill throughput averaged 37,300 tpd during the quarter, up 5% as compared to 35,600 for the same quarter for 2015.

  • Site cash costs for the quarter were US$1.17 per pound of copper produced net of precious metal credits.

  • Total cash costs for the quarter were in-line with expectations at US$1.58 per pound of copper sold net of precious metal credits and after all off-site charges, a reduction of 8% over Q2 2015 total cash costs.

  • Realized prices on metal sales for Q2 2016 were US$2.13 per pound of copper, US$1,269 per ounce of gold and US$16.62 per ounce of silver.

 

Jim O'Rourke, President and CEO of Copper Mountain, remarked "During the second quarter of 2016, Copper Mountain continued to demonstrate improvement in production. The mill finished the quarter strong by averaging 39,800 tpd throughput for the last two weeks of the month.  This continued for the month of July where a new mill throughput record of 40,700 tpd monthly average was achieved.  Despite the challenging commodities price environment, the mine has been cash flow positive from operations by focusing on cost controls and production efficiencies.  Total cash costs for the quarter decreased by 13% to US$1.58 per pound of copper sold net of precious metal credits and after all off-site charges, over Q2 2015 total cash costs.  Mine production was ahead of budget during the quarter with approximately 196,900 tonnes mined per day, well above our 2016 guidance of 174,000 tpd."

Mr. O'Rourke continued, "The increased production has produced an increase in capital resources.  At the end of the quarter the Company had a total of $24.9 million of capital resources in the form of $5.1 million in cash and cash equivalents,$9.6 million in concentrate sales receivables, and $10.2 million of concentrate inventory waiting at the port to be shipped.  We will continue to focus on cost control and operational improvements to further strengthen the Company's balance sheet." 

Summary Financial Results


Three months ended
June 30,

Six months ended
June 30,

(CDN$, except for cash cost data in US$)

2016

$

2015

$

2016

$

2015

$






Revenues

62,552

56,810

121,278

128,267

Gross profit (loss)

2,360

1,154

5,881

7,904

Net (loss) income and comprehensive (loss) income

(2,275)

2,872

16,653

(28,931)

Adjusted earnings (loss) 1

(5,313)

3,476

(11,236)

7,789

Adjusted earnings (loss) per share2

(0.04)

0.03

(0.09)

0.07

EBITDA

13,081

14,821

47,083

(2,855)

Adjusted EBITDA

10,043

15,426

19,194

33,865

Cash flow from operating activities before working capital items

14,335

6,901

29,496

24,777






Cash and cash equivalents



5,149

22,349

Accounts payable and accrued liabilities



34,039

38,847

Working capital



(17,305)

15,763

Equity



193,283

251,816






Copper produced (000's lbs)

21,200

19,500

40,200

37,900

Gold produced (oz)

7,980

7,800

15,600

15,600

Silver produced (oz)

74,600

71,100

139,300

151,400






Copper sold (000's lbs)

20,100

18,400

38,200

39,900

Gold sold (oz)

7,200

6,300

14,100

13,900

Silver sold (oz)

63,700

66,700

124,900

159,400

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

1.17

1.36

1.21

1.30

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

1.58

1.81

1.55

1.79

Realized Copper Price (US$)

2.13

2.74

2.12

2.68

 

Copper Mountain Mine

During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 20.1 million pounds of copper, 7,200 ounces of gold, and 63,700 ounces of silver which generated $62.6 million in revenue net of treatment and refining charges and pricing adjustments.  Site cash costs were US$1.17 per pound of copper produced and total cash costs were US$1.58 per pound sold, net of precious metal credits for the three months ended June 30, 2016; compared to site cash costs of US$1.36 per pound of copper produced and total cash costs of US$1.81 per pound of copper sold, net of precious metal credits for the three months ended June 30, 2015.  The increase in revenue is a result of stronger sales volumes as compared to the same period last year, a higher gold price as precious metals account for 20% of the revenue, and a higher foreign exchange rate for the US dollar as all sales are in US dollars.  The Revenue was partially offset by a lower copper price realized during the quarter.   

Mining activities continued to be focused in the Pit #2 and the Virginia pit areas for the second quarter of 2016.  During the quarter a total of 17.9 million tonnes of material was mined, including 5.7 million tonnes of ore and 12.2 million tonnes of waste for a strip ratio of 2.14:1.  For the quarter the mining rate averaged 196,000 tonnes per day moved.

During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.34% copper to produce 21.2 million pounds of copper, 7,980 ounces of gold, and 74,600 ounces of silver. Mill recoveries were 82.4% for the quarter.  Mill operating time during the quarter averaged 91.5% compared to 90.8% averaged during Q2 2015. The mill continued to achieve monthly improvements in throughput during the quarter and averaged a rate of 37,300 tpd for the quarter.  The improvements in throughput continued into July where the mill averaged 40,700 tpd throughput with a 96% operating time.

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

Summarized Balance Sheet



June 30,

2016

$

December 31,

2015

 $

Assets



Cash

5,149

12,190

Accounts Receivable and prepaids

16,556

11,990

Inventory

50,129

44,882

Property, plant and equipment

494,671

519,750

Other Assets

69,009

58,494


635,514

647,306

Liabilities



Accounts payable and accrued liabilities

34,039

40,608

Current portion of long-term debt

40,948

33,115

Other

14,152

10,704

Hydro deferral

6,828

-

Decommissioning and restoration provision

7,375

7,787

Interest rate swap liability

7,681

7,061

Long-term debt

331,208

371,610


442,231

470,885

Equity



Share capital

188,306

188,306

Contributed surplus

13,369

12,929

Retained earnings (deficit)

(69,656)

(81,379)

Non-controlling interest

61,264

56,565

Total equity

193,283

176,421


635,514

647,306

 


Summarized Income Statement





Three months ended

 June 30,

   Six months ended
June 30,

(CDN$)

2016

$

2015

$

2016

$

2015

$

Revenues

62,552

56,810

121,278

128,267

Cost of sales3

(60,192)

(55,656)

(115,397)

(120,363)

Gross profit

2,360

1,154

5,881

7,904






Other income and expenses





General and administration

(1,199)

(2,777)

(2,979)

(4,228)

Low grade stockpile write-down

(2,262)

-

(4,219)

-

Share based compensation

(212)

(258)

(446)

(583)

Operating income

(1,313)

(1,382)

(1,763)

3,093






Finance income

41

86

138

199

Finance expense

(2,853)

(2,516)

(5,984)

(5,027)

Unrealized gain (loss) on interest rate swap

(754)

366

(3,320)

(1,625)

Unrealized gain (loss) on foreign exchange

2756

5,195

27,904

(27,049)

(Loss) income before tax

(2,123)

1,749

16,975

(30,410)






Current resource tax expense

(152)

(102)

(322)

(467)

Deferred income and resource tax recovery

-

1,225

-

1,945

Net income (loss) and comprehensive income (loss) for the period

(2,275)

2,872

16,653

(28,931)






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





Shareholders of the company

(1,894)

1,642

11,723

(22,326)

Non-controlling interest

(381)

1,230

4,930

(6,605)


(2,275)

2,872

16,653

(28,931)






Earnings (loss) per share

(0.02)

0.01

0.10

(0.19)

 

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

Exploration Update:

During the quarter exploration work consisted of continuous compilation work in the area of the open pits.  In addition, the Company initiated a localized diamond drill program designed to provide an extension to the western end of Pit 2.

Exploration – Generative

The exploration team continues to investigate and evaluate early and advanced-exploration properties as well as development projects, which are located within the America's.  Additional geophysics and a possible diamond drilling program is planned for the Fenton gold/zinc project in northern British Columbia later this year.

2016 Guidance:

The 2016 mine plan has a majority of ore coming from Pit #2 and the Virginia Pit areas.  The 2016 guidance remains unchanged for the balance of 2016.   

About Copper Mountain Mining Corporation:

Copper Mountain's flagship asset is the 75% owned 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 the remaining 25%. The Copper Mountain mine commenced production in the latter half of 2011, and has continued to improve its operations since start-up. The 18,000 acre site has a large resource of copper that remains open laterally and at depth. The mine has significant exploration potential that will need to be explored over the next few years to fully appreciate the property's full development potential.  Additional information is available on the Company's web page at www.CuMtn.com.


A conference call and audio webcast will be held on Monday, August 8, 2016 at 7:30 am (Pacific Daylight Time) for management to discuss the second quarter 2016 results.  This discussion will be followed by a question-and-answer period with investors.

 

Live Dial-in information

Toronto and international:      416-764-8688

North America (toll-free):      888-390-0546

To participate in the webcast live via your computer go to:

http://event.on24.com/r.htm?e=1224652&s=1&k=19F8DDE9C7DEEBDD11DCD4E6D6EADD1E

Replay call information

Toronto and international:   416-764-8677, passcode 976881

North America (toll-free):    

888-390-0541, passcode 976881

 

The conference call replay will be available from 10:30 am (PDT) on August 8, 2016, until 11:59 pm PST on August 15, 2016

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.

_______________________

1 Adjusted 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.
2 Calculated based on weighted average number of shares outstanding under the basic method based on adjusted earnings.
3 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.

 

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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