b5bd6cef-f05b-45ab-997d-23f94f49c8a9.pdf
Copper Mountain Mining Corporation Suite 1700, 700 West Pender Street Vancouver, BC V6C 1G8 Telephone: (604) 682-2992
Facsimile: (604) 682-2993
Web Site: www.CuMtn.com
TSX: CUM
Copper Mountain Mining Announces Positive Q1 2016 Results
Vancouver, British Columbia - May 2, 2016 - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces first quarter revenues of $58.7 million after pricing adjustments and treatment charges from the sale of 22.3 million pounds of copper equivalent (including 18.1 million pounds of copper, 6,900 ounces of gold, and 61,200 ounces of silver). Total cash cost for the quarter ended March 31, 2016 was US$1.61 per pound of copper sold, net of precious metals credits.
Highlights (100% Basis)
-
Copper, gold and silver production for the first quarter of 2016 at Copper Mountain Mine was 23.8 million pounds of copper equivalent which includes 19.0 million pounds of copper, 7,600 ounces of gold and 64,700 ounces of silver.
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Revenues for the first quarter of 2016 were $58.7 million from the sale of 18.1 million pounds of copper, 6,900 ounces of gold, and 61,200 ounces of silver, net of pricing adjustments.
-
Gross profit for the quarter was $1.6 million.
-
EBITDA was $34.4 million for the quarter, compared to a loss of $17.7 million in the same quarter for 2015.
-
A mining rate of 192,000 tonnes moved was achieved during the quarter, compared to 158,000 tonnes moved during 2015.
-
Mill throughput achieved a record of 39,980 tpd in February and averaged 37,100 tpd during the quarter.
-
Site cash costs for the quarter were US$1.16 per pound of copper produced net of precious metal credits.
-
Total cash costs for the quarter were in-line with expectations at US$1.61 per pound of copper sold net of precious metal credits and after all off-site charges, a reduction of 9% over Q1 2015 total cash costs.
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Realized prices on metal sales for Q1 2016 were US$2.10 per pound of copper, US$1,188 per ounce of gold and US$14.89 per ounce of silver.
Jim O'Rourke, President and CEO of Copper Mountain, remarked "During the first quarter of 2016, Copper Mountain continued to demonstrate solid performance within a challenging commodities price environment by focusing on cost containment and production efficiencies. Total cash costs for the quarter decreased by 9% to US$1.61 per pound of copper sold net of precious metal credits and after all off-site charges, over Q1 2015 total cash costs. Mine production was strong during the quarter with approximately 192,000 tonnes mined per day, well above our 2016 guidance of 174,000 tpd. Mill throughput for the quarter averaged 37,100 tpd, a 9% quarter-over-quarter increase, further demonstrating Copper Mountain's ability to operate above design capacity of 35,000 tpd on a sustained basis".
Mr. O'Rourke continued, "At this time, I would like to acknowledge the dedication and efforts of our employees and suppliers for their commitments and cooperation in successfully tackling the challenges necessary to survive in the current copper price environment. We continue to focus on cost control and operational improvements to deal with the reality of the current global economic climate and are well positioned to benefit from higher metal prices in the future."
Summary Financial Results
Three months ended
March 31,
|
(CDN$, except for cash cost data in US$)
|
2016
$
|
2015
$
|
|
Revenues
|
58,726
|
71,457
|
|
Gross profit (loss)
|
1,564
|
6,750
|
|
Operating income (loss)
|
(450)
|
4,474
|
|
Adjusted earnings 1
|
(7,880)
|
4,312
|
|
Adjusted earnings per share2
|
(0.07)
|
0.04
|
|
EBITDA
|
34,002
|
(17,676)
|
|
Adjusted EBITDA
|
7,194
|
18,439
|
|
Cash Flow from operating activities before working capital items
|
15,161
|
17,876
|
|
Cash and cash equivalents
|
1,761
|
14,792
|
|
Accounts payable and accrued liabilities
|
30,519
|
40,608
|
|
Working capital
|
(13,946)
|
17,923
|
|
Equity
|
195,348
|
248,686
|
|
Copper produced (000's lbs)
|
19,000
|
18,400
|
|
Gold produced (oz)
|
7,600
|
7,800
|
|
Silver produced (oz)
|
64,700
|
80,300
|
|
Copper sold (000's lbs)
|
18,100
|
21,500
|
|
Gold sold (oz)
|
6,900
|
7,600
|
|
Silver sold (oz)
|
61,200
|
92,700
|
|
Site cash costs per pound of copper produced (net of gold, silver credits) (US$)
|
1.16
|
1.21
|
|
Total cash costs per pound of copper sold (net of gold, silver credits) (US$)
|
1.61
|
1.77
|
|
Realized Copper Price (US$)
|
2.10
|
2.64
|
Copper Mountain Mine
During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 18.1 million pounds of copper, 6,900 ounces of gold, and 61,200 ounces of silver which generated $58.7 million in revenue net of treatment and refining charges and pricing adjustments. Site cash costs were US$1.16 per pound of copper produced and total cash costs were US$1.61 per pound sold, net of precious metal credits for the three months ended March 31, 2016; compared to site cash costs of US$1.21 per pound of copper produced and total cash costs of US$1.77 per pound of copper sold, net of precious metal credits for the three months ended March 31, 2015.
Mining activities were mainly focused in the Pit #2 and the Virginia pit areas for the first quarter of 2016. During the quarter a total of 17.4 million tonnes of material was mined, including 5.7 million tonnes of ore and 11.8 million tonnes of waste for a strip ratio of 2.07:1. During the quarter, the mine achieved a new daily mining record of 242,950 tpd, which was made possible by the opening up of short waste haul opportunities and a continued focus on maximizing haul truck hours. For the quarter the mine averaged 194,000 tonnes per day moved.
During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.312% copper to produce 19 million pounds of copper, 7,600 ounces of gold, and 64,600 ounces of silver. Mill recoveries were 82% for the quarter. Mill operating time during the quarter averaged 91% operating time, with March operating time coming in at 93.5%, compared to 93.2% averaged during Q1-2015. The mill achieved an average throughput rate of 37,100 tpd during the quarter, as the Company had some planned and unplanned downtime associated with the SAG mill discharge screen early in the quarter that reduced the quarter's average.
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.
Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:
Summarized Balance Sheet
|
March 31,
2016
$
|
December 31,
2015
$
|
|
12,190
|
|
1,761
|
|
16,865
|
11,990
|
|
45,162
|
44,882
|
|
504,904
|
519,750
|
|
64,577
|
58,494
|
|
633,269
|
647,306
|
|
40,608
|
|
32,479
|
|
31,361
|
33,115
|
|
13,894
|
10,704
|
|
6,943
|
7,787
|
|
8,678
|
7,061
|
|
344,566
|
371,610
|
|
437,921
|
470,885
|
|
188,306
|
|
188,306
|
|
13,159
|
12,929
|
|
(67,762)
|
(81,379)
|
|
61,645
|
56,565
|
|
195,348
|
176,421
|
|
633,269
|
647,306
|
Assets
Cash
Accounts Receivable and prepaids Inventory
Property, plant and equipment Other Assets
Liabilities
Accounts payable and accrued liabilities Current portion of long-term debt
Other
Decommissioning and restoration provision Interest rate swap liability
Long-term debt
Equity
Share capital Contributed surplus
Retained earnings (deficit) Non-controlling interest Total equity
Summarized Income Statement
|
Three months ended
March 31,
|
|
(CDN$)
|
2016
$
|
2015
$
|
|
Revenues
|
58,726
|
71,457
|
|
Cost of sales3
|
(57,162)
|
(64,707)
|
|
Gross profit
|
1,564
|
6,750
|
|
Other income and expenses
|
|
General and administration
|
(1,780)
|
(1,951)
|
|
Share based compensation
|
(234)
|
(325)
|
|
Operating income
|
(450)
|
4,474
|
|
Pricing adjustments on concentrate and metal sales
|
(4,226)
|
1,881
|
|
Finance income
|
97
|
113
|
|
Finance expense
|
(3,131)
|
(2,510)
|
|
Current resource tax expense
|
(170)
|
(365)
|
|
Deferred income and resource tax recovery
|
-
|
720
|
|
Adjusted earnings4
|
(7,880)
|
4,312
|
|
Pricing adjustments on concentrate and metal sales
|
4,226
|
(1,881)
|
|
Unrealized gain (loss) on interest rate swap
|
(2,566)
|
(1,991)
|
|
Unrealized gain (loss) on foreign exchange
|
25,148
|
(32,244)
|
|
Net income (loss) and comprehensive income (loss) for the period
|
18,928
|
(31,803)
|
|
Net income (loss) and comprehensive income (loss) attributable to:
|
|
Shareholders of the company
|
13,617
|
(23,968)
|
|
Non-controlling interest
|
5,311
|
(7,835)
|
|
18,928
|
(31,803)
|
|
Earnings (loss) per share
|
$0.11
|
($0.21)
|
|
Adjusted earnings per share
|
($0.07)
|
$0.04
|
Exploration Update:
The full set of financial statements and accompanying MD&A are posted on Sedar.com.
At the Copper Mountain site the exploration work during the quarter consisted of continuous near mine compilation work as well as developing localized exploration drill programs to optimize long term mine planning. The exploration team continues to investigate and evaluate early and advanced-exploration properties as well as development projects, which are predominately located within the America's.
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.
-
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.
-
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.