Copper Mountain Mining Announces Q1-2018 Financial Results
VANCOUVER, April 27, 2018 - Copper Mountain Mining Corp. (TSX: CMMC, ASX:C6C) (the "Company" or "Copper Mountain") announces 2018 first quarter revenues of $78 million after pricing adjustments and treatment charges from the sale of 24.8 million pounds of copper equivalent, including 21.7 million pounds of copper, 6,500 ounces of gold, and 80,600 ounces of silver. Total cash cost for the quarter ended March 31, 2018 was US$1.90 per pound of copper sold, net of precious metals credits.Highlights (100% Basis)
- Copper, gold and silver production for the first quarter of 2018 at Copper Mountain Mine was 23.2 million pounds of copper equivalent which includes 19.9 million pounds of copper, 6,070 ounces of gold and 77,900 ounces of silver.
- Revenue for the period was $78.0 million, from the sale of 21.7 million pounds of copper, 6,500 ounces of gold and 80,600 ounces of silver, net of pricing adjustments.Gross profit for the quarter was $6.3 million.
- Adjusted EBITDA was $28.6 million for the quarter, compared to $16 million in the same quarter for 2017.
- Adjusted earnings were $10.6 million or $0.08 per share, compared to $0.3 million and nil per share for the same quarter of 2017.
- Site cash costs for the 2018 first quarter were US$1.46 per pound of copper produced net of precious metal credits.
- Total cash costs for the period were US$1.90 per pound of copper sold net of precious metal credits and after all off-site charges.
- At the end of the quarter the Company had $42.5 million in cash, and received an additional $22 million on April 4, 2018 relating to an end of March shipment of copper concentrate.
- Realized prices on metal sales were US$3.17 per pound of copper, US$1,326 per ounce of gold and US$16.60 per ounce of silver.
Jim O'Rourke, President and CEO of Copper Mountain, remarked "During the first quarter of 2018, the mill throughput averaged 38,800 tpd. Abnormally high snowfall during the quarter created operating challenges in the pit and resulted in some power supply disruptions. We remain bullish on the outlook for the copper market and with our production on target we are well positioned to benefit from a strong copper price environment. We continue to focus on cost control and operational improvements to further strengthen the Company's balance sheet."
Summary Financial Results
(In thousands of CDN$, other than per share and per pound amounts)
| Three months ended March 31, | ||
| 2018 $ | 2017 $ | |
| Revenues | 77,946 | 74,096 |
| Cash flow from operations | 18,083 | 20,843 |
| Gross profit | 6,312 | 11,211 |
| Operating income (loss) | 3,332 | 7,971 |
| EBITDA1 | 11,485 | 22,819 |
| Adjusted EBITDA | 28,553 | 16,030 |
| Adjusted earnings2 | 10,602 | 328 |
| Adjusted earnings (loss) per share3 | 0.08 | 0.00 |
| Cash and cash equivalents | 42,568 | 30,126 |
| Accounts receivable | 36,194 | 26,044 |
| Total cash and cash equivalents and accounts receivable | 78,762 | 56,170 |
| Equity | 259,427 | 230,460 |
| Total pounds of copper sold (000's lbs) | 21,700 | 19,000 |
| Total ounces of gold sold (oz) | 6,500 | 6,000 |
| Total ounces of silver sold (oz) | 80,600 | 64,000 |
| Site cash costs per pound of copper produced | 1.46 | 1.36 |
| Total cash costs per pound of copper sold | 1.90 | 1.86 |
| Realized Copper Price (US$) | 3.17 | 2.65 |
| ________________________________ | |
| 1 | Earnings before interest, taxes, depreciation and amortization. Refer to the Non-GAAP Performance measures section of this MD&A. |
| 2 | 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. |
| 3 | Calculated by dividing the total adjusted earnings by the weighted average number of shares outstanding under the basic method. |
During the quarter, the Company completed a total of four shipments of copper concentrate containing approximately 21.7 million pounds of copper, 6,500 ounces of gold, and 80,600 ounces of silver which generated $78 million in revenue net of treatment and refining charges and pricing adjustments, a 5 % increase over Q1 2017. Site cash costs were US$1.46 per pound of copper produced and total cash costs were US$1.90 per pound sold, net of precious metal credits for the three months ended March 31, 2018; compared to site cash costs of US$1.36 per pound of copper produced and total cash costs of US$1.86 per pound of copper sold, net of precious metal credits for the three months ended March 31, 2017.
Mining activities were mainly focused in the Pit #2, Saddle and Oriole Pit areas for the first quarter of 2018. During the quarter a total of 16.6 million tonnes of material was mined, including 6.5 million tonnes of ore and 10.1 million tonnes of waste for a strip ratio of 1.54:1. During the quarter the mine experienced abnormally high snow fall causing some challenges in the pit and a minor disruption in power supply. During the quarter mining rates of 184,300 tonnes per day moved were achieved.
During the quarter the mill processed a total of 3.5 million tonnes of ore grading 0.33% copper to produce 19.9 million pounds of copper, 6,070 ounces of gold, and 77,900 ounces of silver. Mill head grade was above guidance for the quarter, while copper recoveries were above the plan at 79%. Mill operating time during the quarter averaged 93% and the mill achieved an average throughput rate of 38,800 tpd during the quarter.
The Company currently has 435 operating employees engaged at the mine site.
The following table sets out the major operating parameters for the mine for the three months ended March 31, 2018:
| Mine Production Information | Three months ended March 31, | ||
| Copper Mountain Mine (100% Basis) | 2018 | 2017 | |
| Mine: | |||
| Total tonnes mined (000's4) | 16,584 | 17,962 | |
| Ore tonnes mined (000's) | 6,518 | 5,698 | |
| Waste tonnes (000's) | 10,066 | 12,264 | |
| Stripping ratio | 1.54 | 2.16 | |
| Mill: | |||
| Tonnes milled (000's) | 3,492 | 3,361 | |
| Feed Grade (Cu%) | 0.33 | 0.31 | |
| Recovery (%) | 78.7 | 78.9 | |
| Operating time (%) | 92.5 | 91.8 | |
| Tonnes milled (TPD5) | 38,800 | 37,350 | |
| Production: | |||
| Copper production (000's lbs) | 19,900 | 18,100 | |
| Gold production (oz) | 6,070 | 5,900 | |
| Silver production (oz) | 77,900 | 64,300 | |
| Site cash costs per pound of copper produced | 1.46 | 1.36 | |
| Total cash costs per pound of copper sold | 1.90 | 1.86 | |
| ___________________________ | ||
| 4 | Excludes ore re-handle from stockpile | |
| 5 | Tonnes per day | |
Exploration Update:
During the quarter exploration work consisted of continuous near mine compilation work as well as developing localized exploration drill programs to implement this summer to optimize long term mine planning.
The Company completed the acquisition of Altona Mining Ltd. on April 18, 2018. With the acquisition the Company holds minerals tenures over approximately 4,000km2 along the Rose Bee fault complex spanning 250 km that is a dominate land position in the Eastern Mt. Isa Inlier area. The Company is planning to follow up on some of the successful drilling from Altona's 2017 drilling program on the Companion, Veiled and Quamby prospects. These prospects add to an emerging cluster of copper-gold discoveries south of the proposed Eva Copper Project.
Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:
Summarized Balance Sheet
| December 31, 2017 $ | December 31, 2016 $ | |
| Assets | ||
| Cash | 42,568 | 45,133 |
| Accounts Receivable and prepaids | 36,194 | 29,314 |
| Inventory | 65,404 | 68,135 |
| Property, plant and equipment | 400,989 | 414,041 |
| Other Assets | 122,873 | 111,326 |
| 668,028 | 667,949 | |
| Liabilities | ||
| Current liabilities | 88,056 | 92,056 |
| Amounts payable to related parties | 59,349 | 43,633 |
| Provisions | 6,493 | 6,521 |
| Interest rate swap liability | 1,623 | 2,081 |
| Long-term debt | 253,080 | 258,373 |
| 408,601 | 402,664 | |
| Equity | ||
| Share capital | 195,758 | 195,670 |
| Contributed surplus | 16,244 | 15,724 |
| Deficit | (30,944) | (25,693) |
| Non-controlling interest | 78,369 | 79,584 |
| Total equity | 259,427 | 265,285 |
| 668,028 | 667,949 |
Summarized Income Statement
(In thousands of Canadian dollars, other than per share and per pound amounts)
| Three months ended March 31, | ||
| 2017 $ | 2017 $ | |
| Revenues | 77,946 | 74,096 |
| Cost of sales6 | (71,634) | (62,885) |
| Gross profit | 6,312 | 11,211 |
| Other income and expenses | ||
| General and administration | (2,474) | (2,682) |
| Exploration and evaluation | - | (35) |
| Share based compensation | (506) | (523) |
| Operating income | 3,332 | 7,971 |
| Pricing adjustments on concentrate and metal sales | 9,765 | (3,976) |
| Finance income | 136 | 145 |
| Finance expense | (3,514) | (3,437) |
| Current resource tax expense | (345) | (375) |
| Deferred income and resource tax expense | 1,228 | - |
| Adjusted earnings7 | 10,602 | 328 |
| Pricing adjustments on concentrate and metal sales | (9,765) | 3,976 |
| Unrealized loss on interest rate swap | 773 | (358) |
| Unrealized gain on foreign exchange | (8,076) | 3,171 |
| Net income and comprehensive income for the period | (6,466) | 7,117 |
| Net income and comprehensive income attributable to: | ||
| Shareholders of the company | (5,251) | 4,723 |
| Non-controlling interest | (1,215) | 2,394 |
| (6,466) | 7,117 | |
| Earnings per share | ($0.04) | $0.04 |
| Adjusted earnings per share | $0.08 | $0.00 |
| 6 | 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. | |
| 7 | 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. | |
The full set of financial statements and accompanying MD&A are posted on Sedar.com.
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 large exploration potential is being explored over the next few years in order to fully appreciate the property's full development potential. Recently, Copper Mountain's acquisition of Altona Mining Ltd. has been completed which brings with it approximately A$30M cash, the Cloncurry project with development-ready Eva Copper Project and an extensive exploration potential in the acquired ~ 4,000 square km (379,000 hectare) mineralized land package within the highly prospective Mt. Isa inlier area in Queensland, Australia.
Additional information is available on the Company's web page at www.CuMtn.com.
A conference call and audio webcast will be held on Friday April 27, 2018 at 7:30 am (Pacific Daylight Time) for management to discuss the first quarter 2018 results. This discussion 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 1590989
North America (toll-free): 1.855.859.2056, passcode 1590898
The conference call replay will be available from 10:30 am (PDT) on April 27, 2018, until 11:59 pm PST on May 14, 2018. 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 Corp.
"Rod Shier"
Rodney A. Shier, CPA,CA, Chief Financial Officer
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 Company's properties in Canada and Australia, the reliability of the historical data referenced in this press relase and risks set out in Copper Mountain's 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.
Contact
Copper Mountain Mining Corp.
Dan Gibbons, Investor Relations at 604-682-2992 ext. 238 or e-mail: Dan@cumtn.com
Rod Shier, Chief Financial Officer at 604-682-2992 ext.222 or e-mail: Rod@CuMtn.com
Website: www.CuMtn.com
