Quantcast
Last updated on April 21, 2014 at 12:45 EDT

Copper Mountain announces third quarter 2013 results

October 30, 2013
     ___________________________________________________________________
    |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, Oct. 30, 2013 /PRNewswire/ – Copper Mountain Mining Corporation (TSX: CUM) (the “Company” or “Copper Mountain”) announces revenues of $67.6 million after pricing adjustments and
treatment charges for the three months ended September 30, 2013.

     _____________________________________________________________________
    |                    Third Quarter 2013 Highlights (100% Basis)       |
    |_____________________________________________________________________|
    |    --  Total production for the 2013 third quarter at Copper        |
    |        Mountain Mine (100%) was 17.7 million pounds of copper, 6,400|
    |        ounces of gold and 79,300 ounces of silver.                  |
    |    --  Revenues of $67.6 million for the quarter after pricing      |
    |        adjustments and treatment charges.                           |
    |    --  Copper concentrate shipments contained approximately 16.6    |
    |        million pounds of copper, 6,300 ounces of gold, and 77,100   |
    |        ounces of silver during the quarter.                         |
    |    --  Mining activities continued at a steady rate of 154,300      |
    |        tonnes per day mined during the third quarter of 2013.       |
    |    --  Milling activities continued to improve - Average throughput |
    |        rate was 29,130 tonnes per day (tpd) in the third quarter of |
    |        2013, as compared to 26,000 tpd for the first half of the    |
    |        year.                                                        |
    |    --  Copper Recoveries were 87.2% in the third quarter as compared|
    |        to 85.0 % for the first half of the year.                    |
    |    --  EBITDA1and Adjusted EBITDA2were $29.5 million and $14.8      |
    |        million for the quarter respectively.                        |
    |    --  Net income attributable to the shareholders of the Company   |
    |        were $11.2 million or $0.11 per share                        |
    |    --  Site cash costs were US$1.68 per pound of copper produced net|
    |        of precious metal credits.                                   |
    |    --  Total costs were US$2.22 per pound of copper sold net of     |
    |        precious metal credits and after all off site charges.       |
    |    --  Average realized copper price for the period US $3.22 per    |
    |________pound._______________________________________________________|

__________________________

(1) EBITDA represents earnings before interest, income taxes and
depreciation

(2) Adjusted EBITDA removes unrealized gains/ losses on derivative
instruments and foreign exchange gains/ losses

Jim O’Rourke, President and CEO of Copper Mountain, remarked “we are very pleased with the progress that is being made at the site.
SAG Mill throughput has continued to improve with our recently
implemented short term improvements which will continue while the
longer term permanent secondary crusher is installed. September was an
excellent month with mill availability exceeding budget and mill
throughput averaging 31,925 tpd, a 22.8 percent increase over the
26,000 tpd average for the first half of the year. Production of 6.8
million pounds copper has been our best month of production since start
up. We are cash flow positive and we will be continuing to improve the
operation as we further increase the amount of minus 2 inch ore being
fed to the SAG Mill
“.

Mr. O’Rourke continued, “Looking forward, management’s efforts are fully focused on the
installation of a secondary crusher and we are continuing to work with
our partner and project banks to get the installation advanced as soon
as possible
.”

Production during the quarter totaled 17.7 million pounds of copper,
6,400 ounces of gold, and 79,300 ounces of silver. Sales for the
quarter were 16.6 million pounds of copper, 6,300 ounces of gold, and
77,100 ounces of silver, generating an EBITDA of $29.5 million for the
quarter. The Company ended the quarter with $17.1 million in cash
which helped eliminate the working capital deficit of the previous
quarter. Listed in the table below is a summary of the financial
results:

Summary Financial Results


                                Three months ended       Nine months ended 

                                     September  30,          September  30,

    (CDN$, except for cash         2013        2012        2013        2012
    cost data in US$)                 $  (restated)           $  (restated)
                                                  $                       $

    Revenues                 67,615,718  47,646,402 168,408,043 179,387,350

    Gross profit (loss)      16,369,921   4,188,510  22,799,370  45,294,852

    Operating income (loss)  15,094,744   2,324,545  18,779,078  39,929,541

    Adjusted earnings           447,137 (2,976,392)   9,819,332  33,827,627
    (loss)3

    Net Income (loss)        15,086,632   9,837,744     731,073  38,335,134

    Earnings (loss)          11,228,008   7,021,854   (441,356)  27,544,900
    attributable to
    shareholders of the
    Company 

    Adjusted earnings                 0      (0.03)         0.1        0.34
    (loss) per share4

    Earnings (loss) per            0.11        0.07        0.00        0.28
    share5

    EBITDA                   29,450,061  17,259,395  33,906,978  63,856,900

    Adjusted EBITDA          14,810,566   4,445,259  42,995,237  59,349,393

    Cash and cash            17,111,172  20,382,828  17,111,172  20,382,828
    equivalents

    Working capital          12,770,023  24,716,985  12,770,023  24,716,985

    Equity                  264,430,692 255,077,339 264,430,692 255,077,339

    Copper produced (lbs)    17,679,000  12,543,000  47,617,000  42,809,000

    Gold produced (oz)            6,400       4,300      17,400      13,000

    Silver produced (oz)         79,300      77,200     214,500     287,000

    Copper sold (lbs)        16,630,000  12,081,000  46,349,000  45,936,000

    Gold sold (oz)                6,300       3,400      17,600      14,700

    Silver sold (oz)             77,100      81,800     212,600     330,400

    Site cash costs per            1.68        2.32        1.71        1.61
    pound of copper
    produced (net of gold,
    silver credits) (US$)

    Total cash costs per           2.22        2.83        2.24        2.15
    pound of copper sold
    (net of gold, silver
    credits) (US$)

__________________________

(3) 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.

(4) Calculated based on weighted average number of shares outstanding under
the basic method based on adjusted earnings.

(5) Calculated based on weighted average number of shares outstanding under
the basic method based on earnings attributable to shareholders.

Copper Mountain Mine

During the quarter, the company completed three shipments of concentrate
containing approximately 16.6 million pounds of copper to Japan for
smelting and recorded revenues, net of smelter charges and pricing
adjustments, of $67.6 million, realizing a gross profit of $16.4
million. The total cash cost of copper sold for the three months ended
September 30, 2013 was US$2.22 per pound of copper after gold and
silver by-product credits.

Mining activities continued in the Pit #3 and Pit#2 area during the
quarter. A total of 13.3 million tonnes of material was mined,
including 3.9 million tonnes of ore and 9.4 million tonnes of waste at
an average mining rate of 154,300 tpd moved during the third quarter of
2013. The ore grade averaged 0.34% Copper for the third quarter. Site
cash costs were $1.68 per pound of copper after gold and silver
by-product credits.

The mine exited the quarter on a positive note with the mill
availability averaging 94.2% and copper production of 6.8 million
pounds for the month of September. Mine production was 17.7 million
pounds of copper, 6,400 ounces of gold, and 79,300 ounces of silver
during the three months of operations ended September 30, 2013. This
brought production for the nine months to 47.6 million pounds of
copper, 17,400 ounces of gold and 214,500 ounces of silver.

Production improvements can be attributed to the increased average mill
throughput rate made possible with the short term secondary crushing
strategies that have been implemented and improved in late July. These
short term strategies include: utilizing an increased powder factor in
the blasting of ore to create more fines; continuing with a contract
portable crusher to crush plus 5,000 tpd of ore to minus two inches;
and the introduction of the Company’s own small portable crusher that
was purchased and installed at the coarse ore stockpile during the
quarter. The combination of these three activities is designed to
create between 12,000 tpd and 13,000 tpd of minus two inch ore feed for
the SAG mill. These short term measures have had positive results
towards increasing mill throughput.

Listed below are a summarized balance sheet and income statement as well
as conference call in details:

Summarized Balance Sheet


                                              September 30, December 31,
                                                       2013         2012
                                                          $ (restated) $

    Assets                                                              

    Cash                                         17,111,172   24,300,790

    Accounts Receivable and prepaids             16,810,572   15,352,990

    Inventory                                    28,297,830   20,874,291

    Property, plant and equipment               535,813,979  541,607,854

    Other Assets                                 40,238,370   29,684,388

                                                638,271,923  631,820,303

    Liabilities                                                         

    Current liabilities                          49,449,551   49,851,807

    Decommissioning and restoration provision     6,348,755    6,997,883

    Interest rate swap liability                  7,462,642   10,980,888

    Long-term debt                              304,163,284  304,178,343

    Deferred tax liability                        6,416,999    2,754,880

                                                373,841,231  374,763,801

    Equity                                                              

    Share capital                               158,110,551  157,942,209

    Contributed surplus                           9,657,971    9,469,280

    Retained earnings (deficit)                  17,854,400   18,025,756

    Non-controlling interest                     79,077,770   71,619,257

    Total equity                                264,430,692  257,056,502

                                                638,271,923  631,820,303

Summarized Income Statement


                             Three months ended                 Nine months
                                  September 30,         ended September 30,

                              2013         2012          2013          2012
                                 $    (restated             $     (restated
                                        note 3)                     note 3)
                                              $                           $

    Revenue             67,615,718   47,646,402   168,408,043   179,387,350

    Cost of sales     (51,245,797) (43,457,892) (145,608,673) (134,092,498)

    Gross profit        16,369,921    4,188,510    22,799,370    45,294,852
    (loss)

    Other income and
    expenses

      General and      (1,249,714)  (1,052,319)   (3,978,854)   (3,455,690)
      administration

      Share based         (25,463)    (811,646)      (41,438)   (1,909,621)
      compensation

    Operating income    15,094,744    2,324,545    18,779,078    39,929,541
    (loss)

    Finance income                      310,828                   1,256,603
                            30,649                    216,073

    Finance expense    (2,080,671)  (1,763,226)   (6,383,667)   (6,072,661)

    Unrealized gain                      71,580     2,274,698   (3,259,889)
    (loss) on            (279,510)
    interest rate
    swap

    Foreign exchange     6,636,035    8,988,290  (10,145,810)     7,530,574
    (loss) gain

    Income (loss)       19,401,247    9,932,017     4,740,372    39,384,168
    before tax

    Current resource     (817,615)     (94,273)   (1,235,040)   (1,049,034)
    tax recovery
    (expense)

    Deferred income    (3,497,000)            -   (2,774,259)             -
    tax recovery
    (expense)

    Net income (loss)   15,086,632    9,837,744       731,073    38,335,134
    and comprehensive
    income (loss)

    Net income (loss)
    and comprehensive
    income (loss)
    attributable to:

      Shareholders of   11,228,008    7,021,854     (441,356)    27,544,900
      the Company

      Non-controlling    3,858,624    2,815,890     1,172,429    10,790,234
      interest

                        15,086,632    9,837,744       731,073    38,335,134

    Earnings per
    share:

      Basic                   0.11         0.07          0.00          0.28

      Diluted                 0.11         0.07          0.00          0.26

    Weighted average    98,618,383   98,509,366    98,618,383    98,506,469
    shares
    outstanding,
    basic and diluted

    Shares              98,619,427   98,547,377    98,619,427    98,547,377
    outstanding at
    end of the period

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 75% owned 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 the remaining 25%. The Copper Mountain mine commenced
production in the latter half of 2011, and has continued to improve its
operations during the year. The 18,000 acre site has a resource of
approximately 5 billion pounds of copper and remains open laterally and
at depth. The mine has significant exploration potential that will need
to be explored over the next few years to fully appreciate the
properties full development potential. Additional information is
available on the Company’s new web page at www.CuMtn.com.

     _______________________________________________________________________________________________________________________________
    |Copper Mountain will host a conference call on Wednesday, October 30th, 2013 at 10:30 a.m. Eastern Time (7:30 a.m. Pacific     |
    |Time) to discuss the 2013 third quarter results. The conference call may be accessed by dialing:                               |
    |                                                                                                                               |
    |Live Dial-in information                                                                                                       |
    |Toronto and international:   416-764-8688                                                                                      |
    |North America (toll-free):  888-390-0546                                                                                       |
    |To participate in the webcast live via your computer go to:                                                                    |
    |http://www.newswire.ca/en/webcast/detail/1238125/1363961|
    |                                                                                                                               |
    |                                                                                                                               |
    |Replay call information                                                                                                        |
    |Toronto and international:   416-764-8677,  passcode  284484                                                                   |
    |North America (toll-free): 888-390-0541,  passcode  284484                                                                     |
    |                                                                                                                               |
    |The conference call replay will be available from 10:30  am (PST) on October 30th, 2013, until 11:59 pm PST on November 6th,   |
    |2013                                                                                                                           |
    |Participant audio webcast will also be available on the company's website                                                      |
    |http://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