Copper Mountain announces 2013 year end results
___________________________________________________________________ |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
VANCOUVER, Feb. 20, 2014 /PRNewswire/ – Copper Mountain Mining Corporation (TSX: CUM) (the “Company” or “Copper Mountain”) announces revenues of $233.1 million after pricing adjustments and
treatment charges for the year ended December 31, 2013 from the sale of
64.8 million pounds of copper, 24,200 ounces of gold, and 301,300
ounces of silver.
_____________________________________________________________________ | Year End 2013 Highlights (100% Basis) | |_____________________________________________________________________| | -- Total production for the 2013 fiscal year at Copper Mountain | | Mine (100%) was 66.2 million pounds of copper, 21,600 ounces | | of gold and 320,400 ounces of silver. This represents a 17% | | growth in copper production and a 14% growth in gold | | production from 2012. | | -- Gross profit for the year was $31.0 million. | | -- Mining activities continued to improve during the year, | | exiting 2013 at a rate of 165,600 TPD mined. | | -- Milling activities continued to improve - Average throughput | | rate was nearly 33,000 tonnes per day (tpd) and mill | | availability was 95% for the month of December 2013 | | -- EBITDA1and Adjusted EBITDA2were $40.5 million and $58.5 | | million for the fiscal year respectively. | | -- Adjusted earnings per share were $14.5 million or $0.15 per | | share | | -- Site cash costs for the year was US$1.70 per pound of copper | | produced net of precious metal credits. | | -- Total cash costs for the year was US$2.22 per pound of copper| | sold net of precious metal credits and after all off- site | | charges. | | -- Realized prices on metal sales for 2013 was $3.25 per pound | | of copper, $1,340 per ounce of gold and $21.75 per ounce of | |________silver.______________________________________________________|
(1) EBITDA represents earnings before interest, income taxes and
(2) Adjusted EBITDA removes unrealized gains/ losses on derivative
instruments and foreign exchange gains/ losses
Jim O’Rourke, President and CEO of Copper Mountain, remarked “The mine achieved record production in 2013 and ended the year on a
strong note. Copper production grew by 17% from the prior year and was
within guidance. The mine delivered improving operational results
quarter over quarter in production, throughput, and mill availability.”
Mr. O’Rourke continued, “Looking forward, we see the next twelve months as a period of growth. We
are forecasting a 25% growth in copper production in 2014 with the
installation of the secondary crusher in mid summer. I am confident
that we will exit 2014 a much stronger company as we focus on
operational improvements and delivering strong results as we rebuild
our credibility to prepare for exciting future developments.“
Summary Financial Results Three months ended Year ended December 31, December 31, (CDN$, except 2013 2012 2013 2012 for cash cost data in US$) $ (restated) $ (restated) $ $ Revenues 64,714,231 50,086,260 233,122,274 229,473,610 Gross profit 8,234,296 10,327,657 31,033,666 55,622,509 (loss) Operating 6,719,364 8,985,058 25,498,442 48,914,599 income (loss) Adjusted 4,724,691 7,156,459 14,544,023 40,984,085 earnings (loss)3 Net Income (4,145,430) 2,138,226 (3,414,357) 40,473,360 (loss) Earnings (2,803,695) 2,020,058 (3,245,051) 29,564,958 (loss) attributable to shareholders of the Company Adjusted 0.05 0.07 0.15 0.42 earnings (loss) per share4 Earnings (0.03) 0.02 (0.03) 0.30 (loss) per share5 EBITDA 6,594,093 10,803,652 40,501,071 74,660,552 Adjusted 15,464,214 15,821,885 58,459,451 75,171,277 EBITDA Cash and cash 42,281,137 24,300,790 equivalents Working 42,649,596 10,676,254 capital Equity 288,500,630 257,056,502 Copper 18,600,000 13,780,000 66,200,000 56,600,000 produced (lbs) Gold produced 4,300 5,800 21,600 18,900 (oz) Silver 105,800 66,700 320,400 354,000 produced (oz) Copper sold 18,492,000 13,185,000 64,841,000 59,122,000 (lbs) Gold sold 6,600 5,200 24,200 19,900 (oz) Silver sold 89,000 71,600 301,300 402,000 (oz) Site cash 1.68 1.65 1.70 1.59 costs per pound of copper produced (net of gold, silver credits) (US$) Total cash 2.19 2.13 2.22 2.09 costs per pound of copper sold (net of gold, silver credits) (US$)
(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 year, the company completed twelve shipments of concentrate
containing approximately 64.8 million pounds of copper to Japan for
smelting and recorded revenues, net of smelter charges and pricing
adjustments, of $233.1 million, realizing a gross profit of $31.0
million. The total cash cost of copper sold for the year ended
December 31, 2013 was US$2.22 per pound of copper after gold and silver
Mining activities continued in the Pit #3 and Pit#2 areas throughout
2013. A total of 56.7 million tonnes of material was mined, including
16.6 million tonnes of ore and 40.1 million tonnes of waste at an
average mining rate of 165,600 tpd moved during 2013. The ore grade
averaged 0.35% Copper for the year. Site cash costs were $1.72 per
pound of copper after gold and silver by-product credits.
The mine exited the year on a positive note with the mill availability
averaging 95% and copper production of 6.9 million pounds for the month
of December. Mine production was 18,600 million pounds of copper, 4,300
ounces of gold, and 105,800 ounces of silver during the three months of
operations ended December 31, 2013. This brought production for the
twelve months ended December 31, 2013 to 66.2 million pounds of copper,
21,600 ounces of gold and 320,400 ounces of silver.
Mill throughput from the 35,000 tpd designed concentrator was improved
significantly during 2013. During the first quarter of 2013 SAG mill
throughput was averaging just over 24,900 tpd, and by year end had
increased to an average of 32,767 tpd during the month of December
2013. This improvement in mill throughput tonnage during the year was
a direct result of the resolution of a number of supplier related
equipment issues that saw plant availability improve from a low of 86%
in early 2013 to a high of 95% for the month of December 2013.
However, the main reason for the increased SAG mill throughput and mill
production is a result of the temporary portable crushing measures
taken by the Company during the year. At the start of the year the
Company increased the powder factor in the blasting of ore to increase
the fragmentation and create more fines in the feed to the SAG Mill.
By year end, the Company had added three independent portable crushing
plants along the conveyor route to the SAG Mill at a cost of
approximately $1.3 million per month. By year end these facilities
collectively were able to crush approximately 10,000 tpd of ore to
minus 2 inch size for the SAG Mill feed and resulted in increased mill
throughput and copper production for the year. Copper production
increased from 14.2 million pounds of copper in the first quarter to
18.6 million pounds of copper in the last quarter of 2013.
Listed below are a summarized balance sheet and income statement as well
as conference call in details:
Summarized Balance Sheet December 31, December 31, 2013 2012 $ (restated) $ Assets Cash 42,281,137 24,300,790 Accounts Receivable and prepaids 17,953,700 15,352,990 Inventory 26,789,416 20,874,281 Property, plant and equipment 531,890,214 541,607,854 Other Assets 44,166,934 29,684,388 663,081,401 631,820,303 Liabilities Current liabilities 44,374,657 49,851,807 Decommissioning and restoration provision 6,245,963 6,997,883 Interest rate swap liability 6,364,019 10,980,888 Long-term debt 311,241,671 304,178,343 Deferred tax liability 6,354,461 2,754,880 374,580,771 374,763,801 Equity Share capital 186,291,105 157,942,209 Contributed surplus 9,662,977 9,469,280 Retained earnings (deficit) 15,292,029 18,537,080 Non-controlling interest 77,254,519 71,107,933 Total equity 288,500,630 257,056,502 663,081,401 631,820,303
Summarized Income Statement Three months ended Year ended December 31, December 31, (CDN$) 2013 20126 2013 20129 $ $ $ $ Revenues 64,714,231 50,086,260 233,122,274 229,473,610 Cost of sales7 (56,479,935) (39,758,603) (202,088,608) (173,851,101) Gross profit 8,234,296 10,327,657 31,033,666 55,622,509 Other income and expenses General and (1,514,514) (797,283) (5,493,368) (4,252,973) administration Share based (418) (545,316) (41,856) (2,454,937) compensation Operating income 6,719,364 8,985,058 25,498,442 48,914,599 Pricing (185,387) 1,878,416 1,031,760 1,641,593 adjustments on concentrate and metal sales Finance income 171,365 314,886 387,438 1,571,489 Finance expense (2,390,128) (2,316,055) (8,773,795) (8,388,716) Current resource 602,290 (252,186) (632,750) (1,301,220) tax expense Deferred income (192,813) (1,453,660) (2,967,072) (1,453,660) and resource tax recovery Adjusted 4,724,691 7,156,459 14,544,023 40,984,085 earnings8 Pricing 185,387 (1,878,416) (1,031,760) (1,641,593) adjustments on concentrate and metal sales Unrealized gain (57,270) (394,705) 2,217,428 (3,654,594) (loss) on interest rate swap Unrealized gain (8,998,238) (2,745,112) (19,144,048) 4,785,462 (loss) on foreign exchange Net income (loss) (4,145,430) 2,138,226 (3,414,357) 40,473,360 and comprehensive income (loss) for the period Net income (loss) and comprehensive income (loss) attributable to: Shareholders of (2,803,695) 2,020,058 (3,245,051) 29,564,958 the company Non-controlling (1,341,735) 118,168 (169,306) 10,908,402 interest (4,145,430) 2,138,226 (3,414,357) 40,473,360 Earnings (loss) (0.03) 0.02 (0.03) 0.30 per share Adjusted earnings 0.05 0.07 0.15 0.42 per share
(6) 2012 comparatives have been adjusted for application of IFRIC 20 and
change in accounting policy related to inventory cost allocation.
(7) 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.
(8) 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
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 Friday, February 21st, 2014 at 10:30 a.m. Eastern Time (7:30 a.m. Pacific Time) | |to discuss the 2013 year end 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/1299285/1433551| | | |Replay call information | |Toronto and international: 416-764-8677, passcode 050882 | |North America (toll-free): 888-390-0541, passcode 050882 | | | |The conference call replay will be available from 10:30 am (PST) on February 21st, 2014, until 11:59 pm PST on February 28th, | |2014 | |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
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