Copper Mountain Announces Second Quarter 2012 Results
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|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, Aug. 13, 2012 /PRNewswire/ – Copper Mountain Mining Corporation (TSX: CUM) (the “Company” or “Copper Mountain”) announces gross revenues of $75.3 million or $60.7 million after pricing
adjustments and treatment charges for the three months ended June 30,
2012.
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| Second Quarter 2012 Highlights |
|_____________________________________________________________________|
| -- 31,700 dry metric tonnes of copper concentrate was delivered |
| to Japan containing approximately 18.1 million pounds of |
| copper, 5,600 ounces of gold, and 124,000 ounces of silver. |
| -- Gross revenues of $75.3 million or $60.7 million after |
| pricing adjustments and treatment charges. |
| -- Gross profit was $6.1 million. |
| -- Adjusted 1 earnings were $7.8 million or $0.08 per share2. |
| -- Net loss for the period was $7.9 million or $0.07 per share3.|
| -- Adjusted EBITDA for the period was $18.0 million. |
| -- Site cash costs were US$1.50 per pound of copper sold net of |
| precious metal credits |
| -- Total costs were US$2.15 per pound of copper sold net of |
| precious metal credits and after all off site charges. |
| -- Provisional4 pricing for concentrate shipments averaged |
| US$3.44 per pound of copper and the cash margin was US$1.29 |
|________per_pound_sold_for_the_second_quarter_of_2012._______________|
Jim O’Rourke, President and CEO of Copper Mountain, remarked “although
the concentrator operating time continued to improve early in the
quarter, downtime due to SAG mill grates and tailings line wear posed
challenges in the last half of the quarter resulting in lower than
planned production for the quarter. Recently a planned shutdown has
allowed us to complete outstanding maintenance issues and install the
newly designed SAG mill grates which is an important step forward
towards us achieving our production goals”.
Mr. O’Rourke continued, “Looking to the third quarter, management’s
efforts are fully focused on optimizing mine and mill operations to
incrementally increase the daily tonnage, working towards the
concentrator design capacity of 35,000 tons per day. Production during
the quarter totaled 16.6 million pounds of copper, an increase of 21%
over the prior quarter production. We are encouraged by continued
progress in 2012 towards reaching the mill’s design capacity on a
consistent basis”.
Summary Financial Results
Three months ended June 30 Six months ended June 30,
(CDN$, except for 2012 2011 2012 2011
cash cost data in
US$) $ $ $ $
Revenues 60,721,215 - 131,740,948 -
Gross profit 6,144,709 - 33,488,576 -
Operating income
(loss) 4,113,156 (2,905,119) 29,987,230 (5,005,671)
Adjusted earnings
(loss)5 7,811,068 (2,303,712) 29,422,127 (4,308,145)
Earnings (loss)
attributable to
shareholders of
the Company (6,424,989) (3,594,072) 14,809,722 (269,919)
Adjusted earnings
per share6 0.08 (0.02) 0.30 (0.04)
Earnings per
share7 (0.07) (0.04) 0.15 (0.01)
Cash and cash
equivalents 27,189,047 62,849,133 27,189,047 62,849,133
Working capital 34,625,481 42,161,186 34,625,481 42,161,186
Equity 236,268,846 223,022,555 236,268,846 223,022,555
Copper produced
(lbs) 16,557,000 - 30,266,000 -
Gold produced (oz) 4,500 - 8,700 -
Silver produced
(oz) 113,500 - 210,000 -
Copper sold (lbs) 18,107,000 - 33,855,000 -
Gold sold (oz) 5,600 - 11,300 -
Silver sold(oz) 124,000 - 248,500 -
Site cash costs
per pound of
copper produced
(net of gold
silver credits)
(US$) $1.50 - $1.46 -
Total cash costs
per pound of
copper sold (net
of gold silver
credits) (US$) $2.15 - $2.01 -
Copper Mountain Mine
The Copper Mountain Mine produced 16.6 million pounds of copper during
the quarter ended June 30, 2012. During the quarter, the mine
completed three shipments of concentrate containing approximately 18.1
million pounds of copper to Japan for smelting and recorded revenues,
net of smelter charges and pricing adjustments, of $60.7 million,
realizing a gross profit of $6.1 million. The total cash cost of
copper sold for the three months ended June 30, 2012 was US$2.15 per
pound of copper after gold and silver by-product credits. There are no
comparative numbers from the prior year since the concentrator began
operating in mid-2011.
Mining activities continued in the Pit 3 area with the push-backs on the
western and eastern walls during the quarter averaging approximately
160,000 tonnes per day, an increase of 16% over the previous quarter.
The Company mined a total of 13.5 million tonnes of material, including
2.5 million tonnes of ore and 11 million tonnes of waste during the
quarter, resulting in a 4.5 to 1 strip ratio. The projected life of
mine strip ratio is 2.0:1 but higher in the early years.
Mill production continued to improve early in the quarter with mill feed
coming entirely from Pit#3. SAG mill operating time in April reached
an average of 91.6% availability as compared to a budgeted availability
of 92%. However, down time due to a scheduled SAG mill discharge liner
change, ball mill motors electrical issues, tailings line maintenance,
and BC Hydro power interruptions from lightning strikes that knocked
the concentrator off line on four separate occasions affected
operating time during the last two months of the quarter, resulting in
lower than planned production for the quarter. The mill treated a
total of 2.3 million tonnes of ore at an average grade of 0.404% Cu
during the second quarter. The Company has resolved the outstanding
issues and is confident that it will reach targeted production rates on
a consistent basis in the near term. Copper concentrate production
during the quarter totaled 16.6 million pounds of copper, 4,500 ounces
of gold, and 113,500 ounces of silver. During the first six months of
2012 the mine completed a total of seven shipments containing
approximately 33.9 million pounds of copper, 11,300 ounces of gold, and
248,500 ounces of silver generating $131.7 million in gross revenue net
of pricing adjustments as outlined in the attached summarized financial
statements.
______________________________________
(1) Adjusted earnings (loss) and adjusted earnings (loss) per share are
non-GAAP financial measures which remove unrealized gains/losses on
interest rate swaps, pricing adjustments on unsettled metal sales 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
June 30, December 31,
2012 2011
$ $
Assets
Current assets $76,388,896 $ 68,245,867
Reclamation bonds 8,200,500 4,700,500
Property, plant and equipment 516,122,281 520,051,062
Non-current ore stockpile 14,221,871 5,540,890
614,933,548 598,538,319
Liabilities
Current liabilities 41,763,415 61,013,998
Decommissioning and restoration provision 5,479,491 5,152,382
Interest rate swap liability 12,176,914 10,610,394
Long-term debt 319,244,882 308,390,897
378,664,702 385,167,671
Equity
Share capital 157,715,207 157,596,608
Contributed surplus 8,298,789 6,602,387
Retained earnings (deficit) 3,781,844 (11,027,878)
Non-controlling interest 66,473,006 60,199,531
Total equity 236,268,846 213,370,648
614,933,548 598,538,319
Summarized Income Statement
Three months ended Six months ended
June 30, June 30,
2012 2011 2012 2011
$ $ $ $
Revenue 60,721,215 - 131,740,948 -
Cost of sales (54,576,506) - (98,252,372) -
Gross profit 6,144,709 - 33,488,576 -
Other income and
expenses
General and
administration (1,191,387) (918,576) (2,403,371) (1,986,622)
Share based
compensation (840,166) (1,986,543) (1,097,975) (3,019,049)
Operating income
(loss) 4,133,156 (2,905,119) 29,987,230 (5,005,671)
Finance income 736,696 610,183 945,775 709,306
Finance expense (2,464,922) (8.776) (4,309,435) (11,780)
Unrealized loss
(gain) on
interest rate
swap (3,331,469) (3,439,077) (3,331,469) (3,380,651)
Unrealized loss
(gain) on foreign
exchange (6,736,181) 1,738,976 (1,457,716) 7,418,877
Income before tax (7,682,720) (4,003,813) 21,834,385 (269,919)
Income tax
expense (280,393) - (954,761) -
Net income and
comprehensive
income for the
period (7,963,113) (4,003,813) 20,879,624 (269,919)
Net income and
comprehensive
income
attributable to:
Shareholders of
the Company (6,424,989) (3,594,072) 14,809,722 (1,309,147)
Non-controlling
interest (1,538,124) (409,741) 6,069,902 1,039,228
(7,963,113) (4,003,813) 20,879,624 (269,919)
Earnings per
share:
Basic (0.07) (0.04) 0.15 (0.01)
Diluted (0.07) (0.04) 0.14 (0.01)
Weighted average
shares
outstanding 98,504,421 98,133,411 98,492,963 96,241,819
Shares
outstanding at
end of period 98,505,377 98,404,877 98,505,377 98,404,877
The full set of financial statements and accompanying MD&A are posted on
Sedar.com.
_______________________________________________________________________________________________________________________________
|Copper Mountain will host a conference call on Tuesday, August 14, 2012 at 11:00 a.m. Eastern Time (8:00 a.m. Pacific Time) 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/detail/1020239/1102961|
| |
|Replay call information |
|Vancouver and international:416-849-0833, passcode 21051013 |
|North America (toll-free): 1-855-859-2056, passcode 21051013 |
|The conference call replay will be available from 2:00 pm (ET) on August 14, 2012, until 11:59 pm ET on August 21st, 2011 |
|Participant audio webcast will also be available on the company's website |
|http://www.cumtn.com |
|_______________________________________________________________________________________________________________________________|
Exploration Update:
The company initiated an exploration drilling program in mid-May with
the objectives of: 1) converting inferred blocks to the measured and
indicated categories, within and peripheral to, planned mining areas;
2) testing depth extents of known mineralization; and 3) testing
mineralized areas that are currently outside of the mine plan.
Approximately 9,800m of drilling has been completed in 45 holes. A
majority of the drilling (6,000m in 28 drill holes), in both shallow
and deep holes, was conducted around and below the Pit 2 area,
primarily to infill gaps in the block model and to extend the
mineralization to depth and to the north. Other drilling was conducted
at depth below the south end of Pit 3 and on local geophysical
targets. Additionally, close-spaced shallow percussion drilling was
carried out along the north side of Pit 2 in order to complete the
block model in the near surface areas for mine planning. Drill results
are currently being compiled and the exploration program will continue
to complete the planned 20,000 meters of drilling for the 2012
exploration program.
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
