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 Q3 2016 Financial Results
Vancouver, British Columbia - November 7, 2016 - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces third quarter revenues of $72.2 million after pricing adjustments and treatment charges from the sale of 29.5 million pounds of copper equivalent (including 23.5 million pounds of copper, 8,600 ounces of gold, and 75,700 ounces of silver). Total cash cost for the quarter ended September 30, 2016 was US$1.45 per pound of copper sold, net of precious metals credits and the Company ended the quarter with $25 million in cash.
Highlights (100% Basis)
-
Copper, gold and silver production for the third quarter of 2016 at Copper Mountain Mine was 22 million pounds of copper, 8,200 ounces of gold and 81,500 ounces of silver.
-
Revenue for the period was $72.2 million, from the sale of 23.5 million pounds of copper, 8,600 ounces of gold, and 75,700 ounces of silver, net of pricing adjustments.
-
Cash flow from operations for the quarter was $15.9 million.
-
Cash balance at the quarter end was $25 million, an increase of $20 million from June 30, 2016
-
Adjusted EBITDA was $16.6 million for the quarter.
-
Site cash costs for the 2016 third quarter were US$0.97 per pound of copper produced net of precious metal credits.
-
Total cash costs for the quarter were US$1.45 per pound of copper sold net of precious metal credits and after all off-site charges.
-
Realized prices on metal sales in the quarter were US$2.15 per pound of copper, US$1,337 per ounce of gold and US$19.54 per ounce of silver.
Jim O'Rourke, President and CEO of Copper Mountain, remarked "During the third quarter of 2016, Copper Mountain achieved new production records at the mine, with Mill throughput averaging 39,980 tpd during the quarter. The mine continues to focus on cost controls and production efficiencies. Total cash costs for the quarter decreased 16% to US$1.45 per pound of copper sold net of precious metal credits from US1.72, Q3 2015 total cash costs. Open pit mining averaged 173,100 tonnes of material per day during the third quarter, bringing the year to date average to 187,200 tonnes of material per day, 7% ahead of plan."
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 $41 million of capital resources in the form of $25 million in cash and cash equivalents, $11 million in concentrate sales receivables, and $5.0 million of concentrate inventory waiting at the port to be shipped. We will continue to focus on cost control and operational improvements to further strengthen the Company's balance sheet."
Summary Financial Results
Three months ended
September 30,
Nine months ended September 30,
|
(in thousands CDN$, except for cash cost data in US$)
|
2016
$
|
2015
$
|
2016
$
|
2015
$
|
|
Revenues
|
72,195
|
63,702
|
193,473
|
191,969
|
|
Gross profit (loss)
|
4,188
|
(2,085)
|
10,069
|
5,818
|
|
Net income (loss) and comprehensive income (loss)
|
(7,937)
|
(28,121)
|
8,716
|
(57,052)
|
|
Adjusted earnings (loss) 1
|
(1,332)
|
2,035
|
(12,568)
|
9,824
|
|
Adjusted earnings (loss) per share2
|
(0.01)
|
0.02
|
(0.10)
|
0.08
|
|
EBITDA3
|
10,006
|
(15,472)
|
57,090
|
(18,327)
|
|
Adjusted EBITDA
|
16,611
|
14,684
|
35,806
|
48,549
|
|
Cash flow from operating activities
|
15,862
|
4,774
|
24,419
|
18,131
|
|
Cash and cash equivalents
|
22,000
|
20,400
|
24,734
|
18,478
|
|
Equity
|
192,337
|
222,529
|
|
Copper produced (000's lbs)
|
62,100
|
58,200
|
|
Gold produced (oz)
|
8,200
|
6,300
|
23,780
|
21,900
|
|
Silver produced (oz)
|
81,500
|
64,900
|
220,800
|
216,300
|
|
Copper sold (000's lbs)
|
23,500
|
21,900
|
61,700
|
61,800
|
|
Gold sold (oz)
|
8,600
|
7,800
|
22,700
|
21,700
|
|
Silver sold (oz)
|
75,700
|
65,300
|
200,600
|
224,700
|
|
Site cash costs per pound of copper produced (net of gold, silver credits) (US$)
|
0.97
|
1.21
|
1.06
|
1.26
|
|
Total cash costs per pound of copper sold (net of gold, silver credits) (US$)
|
1.45
|
1.72
|
1.49
|
1.76
|
|
Realized Copper Price (US$)
|
2.15
|
2.39
|
2.13
|
2.57
|
Copper Mountain Mine
During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately
23.5 million pounds of copper, 8,600 ounces of gold, and 75,700 ounces of silver which generated $72.2 million in revenue net of treatment and refining charges and pricing adjustments. Site cash costs were US$0.97 per pound of copper produced and total cash costs were US$1.45 per pound sold, net of precious metal credits for the three months ended September 30, 2016; compared to site cash costs of US$1.21 per pound of copper produced and total cash costs of US$1.72 per pound of copper sold, net of precious metal credits for the three months ended September 30, 2015. The increase in revenue is a result of stronger sales volumes as compared to the same period last year and a higher foreign exchange rate for the United States dollar. Revenue was partially offset by a lower copper price realized during the quarter.
Mining activities continued from the Pit 2, Saddle and Virginia Pit areas during the quarter. A total of 15.9 million tonnes of material was mined, including 5.9 million tonnes of ore and 10 million tonnes of waste, resulting in a strip ratio of 1.68 to 1. High equipment mechanical availability was maintained during the quarter which helped contribute to the above average mining rates achieved during the quarter. Mining of the Virginia Pit has now been completed.
During the quarter the mill processed a total of 3.7 million tonnes of ore grading 0.33% copper to produce 22 million pounds of copper, 8,200 ounces of gold, and 81,500 ounces of silver. Mill recoveries were 83.0% for the quarter.
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 by dividing the total adjusted earnings by the weighted average number of shares outstanding under the basic method.
3 Earnings before interest, taxes, depreciation and amortization. Refer to the Non-GAAP Performance measures section of this MD&A.
Mill operating time during the quarter averaged 92.2%. The mill achieved an average throughput rate of 39,980 tpd during the quarter. The Company currently has 432 operating employees engaged at the mine site.
The following table sets out the major operating parameters for the mine for the three and nine months ended September 30, 2016.
Mine Production Information Three months ended September 30,
Nine months ended September 30,
Copper Mountain Mine (100% Basis)
2016
$
2015
$
2016
$
2015
$
Mine:
|
Total tonnes mined (000's3)
|
15,920
|
14,708
|
51,303
|
43,607
|
|
Ore tonnes mined (000's)
|
5,949
|
5,381
|
17,348
|
16,734
|
|
Waste tonnes (000's)
|
9,972
|
9,327
|
33,955
|
26,874
|
|
Stripping ratio
|
1.68
|
1.73
|
1.96
|
1.61
|
Mill:
|
Tonnes milled (000's)
|
3,678
|
3,437
|
10,447
|
9,671
|
|
Feed Grade (Cu%)
|
0.33
|
0.33
|
0.33
|
0.33
|
|
Recovery (%)
|
82.9
|
82.4
|
82.4
|
81.8
|
|
Operating time (%)
|
92.2
|
93.2
|
91.6
|
92.4
|
|
Tonnes milled (TPD4)
|
39,980
|
37,345
|
38,100
|
35,402
|
Production:
|
Copper production (000's lbs)
|
22,000
|
20,400
|
62,100
|
58,200
|
|
Gold production (oz)
|
8,200
|
6,300
|
23,780
|
21,900
|
|
Silver production (oz)
|
81,500
|
64,900
|
220,800
|
216,300
|
|
Site cash costs per pound of copper produced
|
|
(net of precious metal credits) (US$)
|
0.97
|
1.21
|
1.06
|
1.26
|
|
Total cash costs per pound of copper sold
|
|
(net of precious metal credits) (US$)
|
1.45
|
1.72
|
1.49
|
1.76
|
Exploration - Mine Site
A 5,000 meter drill program was completed in the third quarter. The drill program was designed to convert inferred resources into measured and indicated status on the western end of Pit 2. The program was successful in converting blocks, increasing grade, lowering strip ratio, and extending mineralization further to the west. Redesign of the open pit in the newly drilled area is scheduled for the fourth quarter and will result in an increase to the reserve base.
Exploration - Generative
A 570 line-km GEOTECH helicopter-borne Z-TEM survey was undertaken and completed over the Fenton project area as well as a number of other company owned properties in the region. Results of the survey will help define target areas for further drill testing of the Fenton property, where previous exploration and preliminary drilling have identified large areas of intense alteration with significant enrichment of gold, silver, and zinc within a felsic flow-dome complex. The survey will also help evaluate the exploration potential of our other early stage properties in the region, in conjunction with recently completed geochemical programs. The targets on these properties range from large,
bulk-tonnage gold-silver deposits to more compact, higher-grade polymetallic deposits.
3 Excludes ore re-handle from stockpile
4 Tonnes per day
Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:
Summarized Balance Sheet (thousands of CAD $)
|
September 30,
2016
$
|
December 31,
2015
$
|
|
12,190
|
|
24,734
|
|
16,461
|
11,990
|
|
45,498
|
44,882
|
|
479,562
|
519,750
|
|
73,315
|
58,494
|
|
639,570
|
647,306
|
|
42,399
|
|
28,241
|
|
47,833
|
33,115
|
|
22,472
|
8,913
|
|
12,021
|
-
|
|
7,154
|
7,787
|
|
7,295
|
7,061
|
|
322,217
|
371,610
|
|
447,233
|
470,885
|
|
188,306
|
|
193,998
|
|
14,668
|
12,929
|
|
(75,754)
|
(81,379)
|
|
59,425
|
56,565
|
|
192,337
|
176,421
|
|
639,570
|
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
Electrcity deferral
Decommissioning and restoration provision Interest rate swap liability
Long-term debt
Equity
Share capital Contributed surplus
Retained earnings (deficit) Non-controlling interest Total equity