Copper Mountain Announces Third Quarter 2011 Results
TSX: CUM
___________________________________________________________________
|This release should be read with the unaudited financial statements|
|and management's discussion and analysis available at |
|www.cumtn.com and filed on |
|www.sedar.com. Our financial |
|results are prepared in accordance with IFRS and expressed in |
|Canadian dollars, unless otherwise noted. Sales and production |
|volumes for the Company's 75%-owned Copper Mountain mine are |
|presented on a 100% basis unless otherwise indicated. |
|___________________________________________________________________|
VANCOUVER, Nov. 14, 2011 /CNW/ - Copper Mountain Mining Corporation
(the 'Company' or 'Copper Mountain')announces operating income of $9.9 million for the three months ended September 30, 2011.Highlights during the quarter:
-- Construction of the Copper Mountain Mine was completed on June
30 and operational commissioning commenced.
-- The first shipment of copper concentrate was delivered to Japan
totalling 11,200 wet metric tonnes.
-- Total revenues were $21.8 million. Gross profit was $10.7
million.
-- Adjusted(1,2) earnings were $9.5 million or $0.10 per share.
-- Net loss for the period was $17.0 million or $0.17 per share as
a result of changes in foreign exchange rates that produced an
unrealized loss of $24.8 million on the Company's long-term
debt denominated in U.S. dollars and $7.2 million on the
interest rate swap derivative required under the Company's
project debt agreements.
-- Cash costs were US$1.40 per pound of copper sold net of
precious metal credits and after all off site charges
-- Provisional(3) pricing for the initial shipment was US$4.08 per
pound of copper and cash margin was US$2.68 per pound sold for
the third quarter of 2011.
Jim O'Rourke, President and CEO of Copper Mountain, remarked 'this third quarter of 2011 has seen the project transform from a development project and into an operating mine with copper, gold, and silver revenues. In just 18 months since receiving our permits to build on April 1, 2010 we have reached our goal of our first shipment of copper concentrate being treated in Japan at our partners' smelter operation in Onahama. We are all very pleased with the accomplishment of all team participants in such a short time'
Mr. O'Rourke continued, 'Our management team has been working very hard to ensure the ramp up of the mill to designed tonnage is achieved expiditiously. With the exception of some grinding issues that are being addressed, we are optimistic the processing plant will will reach design capacity on a steady basis in the near future.'
((1)) Adjusted earnings (loss) and adjusted earnings (loss) per share are non-GAAP financial measures which remove unrealized gains/losses on interest rate swaps and unrealized foreign currency gains/losses.
((2))Calculated based on weighted average number of shares outstanding under the basic method.
((3))Provisional prices are the LME prices at the time of shipment and are subject to change at the settlement dates.
Summary Financial Results
Three months ended Nine monthsended September
September30 30,
(CDN$, except for 2011 2010 2011 2010
cash cost data in
US$) $ $ $ $
Revenues 21,821,321 - 21,821,321 -
Gross profit 10,668,561 - 10,668,561 -
Operating income 9,975,798 (1,624,867) 4,970,127 (2,953,826)
(loss)
Adjusted earnings 9,461,797 (1,512,579) (2,709,940)
(loss)(1)
Earnings (16,979,679) 2,179,406 (18,288,826) (416,455)
(loss)attributable
to shareholders of
the Company
Adjusted earnings 0.10 0.02 0.05 -
per share(2)
Earnings per share (0.17) 0.02 (0.19) -
(1)
Cash and cash 58,996,726 182,325,323
equivalents
Working capital 23,132,747 173,558,967
Equity 204,777,722 116,288,192
Cash costs per 2.32 - 2.32 -
pound of copper
sold (US$)
Less: Gold and (0.92) - (0.92) -
silver credits
(US$)
Cash costs per 1.40 - 1.40 -
pound of copper
sold (net of gold
silver credits)
(US$)
Copper Mountain Mine
The Copper Mountain Mine produced 9.3 million pounds of copper during the quarter ended September 30, 2011. Costs during the months of July and August have been deferred as the mine had not yet achieved commercial production for financial reporting purposes. During the month of September 2011, the mine shipped its first load of concentrate containing 5.8 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $21.8 million, realizing a gross profit of $10.7 million. The cash cost of copper sold in this first shipment was $US2.32 per pound of copper before gold and silver by-product credits and $US1.40 per pound of copper after by-product credits. As this is the first quarter of reporting for the mine, there are no comparative numbers. The only comparative number that the Company could use is the is the feasibility study LOM cost of $US1.30 per pound of copper after gold and silver by-product credits. Higher costs have resulted from increased and consumable costs since the date of the Feasabilty Study. The strengthened Canadian dollar has also been an adverse cost contributor.
Summarized Balance Sheet
September 30, December 31,
2011 2010
Assets
Current assets $ 85,543,266 $ 176,139,510
Reclamation bonds 4,743,000 4,008,000
Property, plant and equipment 514,258,420 346,087,430
(note 4)
$ 604,544,686 $ 526,234,940
Liabilities
Current liabilities 62,410,519 40,509,294
Decommissioning and restoration 3,828,184 3,802,222
provision
Long-term derivative liability 11,621,296 2,021,250
Long-term debt 321,906,965 308,476,843
399,766,964 354,809,609
Equity
Share capital 157,558,786 116,286,786
Contributed surplus 6,148,762 3,800,668
Retained earnings (deficit) (16,618,580) 1,670,246
Non-controlling interest 57,688,754 49,667,631
Total equity 204,777,722 171,425,331
$ 604,544,686 $ 526,234,940
Summarized Income Statement
Three months ended September30, Nine months ended September30,
2011 2010 2011 2010
$ $ $ $
Revenue 21,821,321 - 21,821,321
-
Cost of sales 11,152,760 - 11,152,760
-
Gross profit 10,668,561 - 10,668,561
-
Other income and
expenses
General and 943,267 988,182 2,929,889 2,143,140
administration
Share based (250,504) 636,685 2,768,545 810,686
compensation
Operating income 9,975,798 (1,624,867) 4,970,127 (2,953,826)
(loss)
Finance income (144,606) (144,946) (853,912) (341,860)
Finance expense 658,607 32,658 670,387 97,974
Unrealized loss 7,180,346 - 10,560,997
(gain) on -
interest rate
swap
Unrealized loss 24,789,611 (4,986,010) 17,370,734 (3,096,651)
(gain) on foreign
exchange
Earnings (22,508,160) 3,473,431 (22,778,079) 386,711
(losses)before
income taxes
Provision for -
income and - - -
resource tax
Net income(loss) (22,508,160) 3,473,431 (22,778,079) 386,711
and comprehensive
income (loss) for
the period
Net income (loss)
andcomprehensive
income (loss)
attributable to:
Shareholders of (16,979,679) 2,179,406 (18,288,826) (416,455)
the Company
Non-controlling (5,528,481) 1,294,025 (4,489,253) 803,166
interest
(22,508,160) 3,473,431 (22,778,079) 386,711
Earnings per
share:
Basic (0.17) 0.02 (0.19)
-
Diluted (0.17) 0.02 (0.19)
-
Weighted average 98,405,522 89,813,531 96,974,088 84,788,098
shares
outstanding
Shares 98,411,879 89,965,002 98,411,879 89,965,002
outstanding at
end of period
The full set of financial statements and accompanying MD&A are posted on Sedar.com.
_____________________________________________________________________________________________________________________________________________
|Copper Mountain will host a conference call on Tuesday, November 15, 2011 at 10:30 a.m. Eastern Time (7:30 a.m. Pacific) to discuss these |
|results. The conference call may be accessed by dialing : |
| |
|Live Dial-in information |
|Vancouver and international:(647) 427-7450 |
|North America (toll-free):(888) 231-8191 |
|To participate in the webcast live via your computer go to: |
|http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3735380|
| |
|Replay call information |
|Vancouver and international:416-849-0833, passcode 26050730 |
|North America (toll-free): 1-855-859-2056, passcode 26050730 |
|The conference call replay will be available from 10:30 am (PST) on November 15, 2011, until 11:59 pm PST on Nov. 30, 2011 |
|Participant audio webcast will also be available on the company's website http://www.cumtn.com |
|_____________________________________________________________________________________________________________________________________________|
About Copper Mountain Mining Corporation:
Copper Mountain is a Canadian resource company managed by an experienced team of professionals with a solid track record of exploration and development success. The Company's shares trade on the Toronto Stock Exchange under the symbol 'CUM'. Copper Mountain owns 75% and Mitsubishi Materials Corporation owns 25% of the Copper Mountain Mine. The 18,000 acre mine site is located 20 km south of the town of Princeton in southern British Columbia. The Copper Mountain Mine has a current resource of approximately 5 billion pounds of copper and recently commenced production. Additional information is available on the Company's new web page at 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.
Copper Mountain Mining Corporation
CONTACT: Galina Meleger, Corporate Communications 604-682-2992 ext.224
Email: Galina @CuMtn.com or
Rod Shier, Chief Financial Officer 604-682-2992 ext.222
Email: Rod@CuMtn.com
Website: www.CuMtn.com