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Copper Mountain Announces First Quarter 2012 Results

May 14, 2012

     ___________________________________________________________________
    |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.              |
    |___________________________________________________________________|

Web Site: www.CuMtn.com
TSX: CUM

VANCOUVER, May 14, 2012 /PRNewswire/ – Copper Mountain Mining Corporation (TSX: CUM) (the “Company” or “Copper Mountain”) announces operating income of $25.9 million for the three months ended
March 31, 2012.

     ____________________________________________________________________
    |                             First Quarter 2012 Highlights          |
    |____________________________________________________________________|
    |                                                                    |
    |                                                                    |
    |    --  A total of four copper concentrate shipments were delivered |
    |        to Japan totalling 29,400 dry metric tonnes of concentrate  |
    |        containing 15.7 million pounds of copper, 5,781 ounces of   |
    |        gold, and 124,546 ounces of silver.                         |
    |    --  Total revenues were $71.0 million including pricing         |
    |        adjustments.                                                |
    |    --  Gross profit was $27.3 million.                             |
    |    --  Adjusted 1 earnings were $23.6 million or $0.24 per share2. |
    |    --  Net income for the period was $28.8 million or $0.21 per    |
    |        share3.                                                     |
    |    --  EBITDA for the period was $37.8 million.                    |
    |    --  Site cash costs were US$1.41 per pound of copper sold net of|
    |        precious metal credits                                      |
    |    --  Total costs were US$1.83 per pound of copper sold net of    |
    |        precious metal credits and after all off site charges.      |
    |    --  Provisional4 pricing for concentrate shipments averaged     |
    |        US$3.73 per pound of copper and the cash margin was US$1.90 |
    |        per pound sold for the first quarter of 2012.               |
    |                                                                    |
    |____________________________________________________________________|

Jim O’Rourke, President and CEO of Copper Mountain, remarked “a lot has
been accomplished over the last 3 months in all areas of the mine. The
concentrator operating time continued to improve throughout the quarter
and and reached an average of 89.3% availability in March as compared
to a budgeted availability of 92%”

Mr. O’Rourke continued,  “Looking to the second quarter, management’s
efforts are fully focused on optimizing mill throughput and
incrementally increasing the daily tonnage, working towards the design
capacity of 35,000 tons per day.  Improvements continued in April with
concentrator operating time reaching 91.6% and the mill throughput rate
averaging 34,670 tonnes per operating day resulting in production of
6.2 million pounds of copper, an increase of 28% over the prior months
production.  We are very encouraged by the progress in 2012 towards
reaching the mill’s design capacity on a consistent basis “.


                                      Summary Financial Results

                                                 Three monthsended March 31

                                                        2012           2011
    (CDN$, except for cash cost data in US$)
                                                           $              $

    Revenues                                      71,019,733              -

    Gross profit                                  27,343,867              -

    Operating income (loss)                       25,874,074    (2,100,552)

    Adjusted earnings (loss)5                     23,564,272    (2,004,433)

    Earnings (loss) attributable to shareholders
    of the Company                                21,234,711      2,284,925

    Adjusted earnings per share6                        0.24         (0.02)

    Earnings per share7                                 0.21           0.02

    Cash and cash equivalents                     23,982,788    107,514,547

    Working capital                               45,146,050    102,555,656

    Equity                                       243,264,313    220,879,250

    Copper produced (lbs)                         13,709,034              -

    Gold produced (oz)                                 4,196              -

    Silver produced (oz)                              96,423              -

    Copper sold (lbs)                             15,748,009              -

    Gold sold (oz)                                     5,781              -

    Silver sold(oz)                                  124,546              -

    Site cash costs per pound of copper produced
    (net of gold silver credits) (US$)                 $1.41              -

    Total cash costs per pound of copper sold          $1.83              -
    (net of gold silver credits) (US$) 

 

Copper Mountain Mine

The Copper Mountain Mine produced 13.7 million pounds of copper during
the quarter ended March 31, 2012.  During the quarter, the mine
completed four shipments of concentrate containing approximately 15.7
million pounds of copper to Japan for smelting and recorded revenues,
net of smelter charges and pricing adjustments, of $71.0 million,
realizing a gross profit of $27.3 million.  The total cash cost of
copper sold for the three months ended March 31, 2012 was US$1.83 per
pound of copper after gold and silver 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 2008 Feasibility Study life of mine cost of $US1.30 per pound of
copper after gold and silver by-product credits.  Higher costs have
resulted from increased consumable unit costs since the date of the
2008 Feasibilty Study.  The strengthened Canadian dollar has also been
an adverse cost contributor.

_________________________________________
(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 based on adjusted earnings.
(3) Calculated based on weighted average number of shares outstanding under
the basic method based on earnings attributable to shareholders.
(4) Provisional prices are the LME prices at the time of shipment and are
subject to change at the settlement dates.
(5) 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.
(6) Calculated based on weighted average number of shares outstanding under
the basic method based on adjusted earnings.
(7) Calculated based on weighted average number of shares outstanding under
the basic method based on earnings attributable to shareholders.


                                    Summarized Balance Sheet

                                                March 31,  December 31,
                                                     2012          2011
                                                        $             $

    Assets                                                             

    Current assets                            $88,587,050 $  68,245,867

    Reclamation bonds                           4,700,500     4,700,500

    Property, plant and equipment(note 4)     518,025,340   520,051,062

    Non-current inventory                      10,024,394     5,540,890

                                              621,337,284   598,538,319

    Liabilities                                                        

    Current liabilities                        43,441,000    61,013,998

    Decommissioning and restoration provision   5,165,983     5,152,382

    Long-term derivative liability             10,406,211    10,610,394

    Long-term debt                            319,059,777   308,390,897

                                              378,072,971   385,167,671

    Equity                                                             

    Share capital                             157,714,363   157,596,608

    Contributed surplus                         7,336,240     6,602,387

    Retained earnings (deficit)                10,206,833  (11,027,878)

    Non-controlling interest                   68,006,877    60,199,531

    Total equity                              243,264,313   213,370,648

                                              621,337,284   598,538,319

                                     Summarized Income Statement

                                             Three months ended March 31,

                                     2012                            2011
                                        $                               $

    Revenue                    71,019,733                               -

    Cost of sales              43,675,866                               -

    Gross profit               27,343,867                               -

    Other income and
    expenses

      General and               1,211,984                       1,068,046
      administration

      Share based                 257,809                       1,032,506
      compensation

    Operating income (loss)    25,874,074                     (2,100,552)

    Finance income                209,079                          99,123

    Finance expense           (1,844,513)                         (3,004)

    Unrealized loss (gain)              -                          58,426
    on interest rate swap

    Unrealized loss (gain)      5,278,465                       5,679,901
    on foreign exchange

    Income before tax          29,517,105                       3,733,894

    Income tax expense            674,368                               -

    Net income and             28,842,737                       3,733,894
    comprehensive income
    for theperiod

    Net income and
    comprehensive income
    attributable to:

      Shareholders of the      21,237,711                       2,284,925
      Company

      Non-controlling           7,608,026                       1,448,969
      interest

                               28,842,737                       3,733,894

    Earnings per share:                                                  

      Basic                          0.21                            0.02

      Diluted                        0.21                            0.02

    Weighted average shares    98,481,155                      94,175,339
    outstanding

    Shares outstanding at      98,504,377                      98,001,031
    endof period

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

SOURCE Copper Mountain Mining Corporation


Source: PR Newswire