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, Nov. 14, 2012 /PRNewswire/ - Copper Mountain
Mining Corporation (TSX: CUM) (the "Company" or "Copper
Mountain") announces gross revenues of $47.7
million or $47.6 million after
pricing adjustments and treatment charges for the three months
ended September 30, 2012, bringing
total gross revenues for the nine months to $179.4 million after pricing adjustments and
treatment charges.
Third Quarter 2012 Highlights |
- 20,900 dry metric tonnes of copper concentrate was delivered to
Japan containing approximately 12.1 million pounds of copper, 3,400
ounces of gold, and 81,800 ounces of silver.
- Gross revenues of $47.7 million or $47.6 million after pricing
adjustments and treatment charges.
- Net income for the period was $4.1 million or $0.03 per
share1.
- Site cash costs were US$2.75 per pound of copper produced net
of precious metal credits.
- Total costs were US$3.25 per pound of copper sold net of
precious metal credits and after all off site charges.
|
Jim O'Rourke, President and CEO
of Copper Mountain, remarked "although the concentrator operating
time continued to challenge us during the first month of the
quarter as a result of downtime due to SAG mill grates and tailings
line wear, the last two months of the quarter saw unscheduled
downtime reduced providing confidence that the mill can operate at
the planned 92 percent availability, which is an important step
forward towards us achieving our production goals".
Mr. O'Rourke continued, "Looking to the fourth quarter,
management's efforts are fully focused on optimizing mine and mill
operations to incrementally increase the daily tonnage, and
sustaining the concentrator at or above the design capacity of
35,000 tons per day. Production during the quarter totaled 12.5
million pounds of copper, 4,300 ounces of gold, and 77,200 ounces
of silver which was slightly above our guidance numbers."
Summary Financial
Results |
|
Three months
ended |
Nine months
ended |
|
September
30, |
September
30, |
(CDN$, except for cash cost data in US$) |
2012 |
2011 |
2012 |
2011 |
|
$ |
$ |
$ |
$ |
|
|
|
|
|
Gross revenues |
47,755,098 |
29,943,268 |
192,504,055 |
29,943,268 |
Gross profit (loss) |
(1,504,739) |
10,668,561 |
31,983,837 |
10,668,561 |
Operating income (loss) |
(3,368,704) |
9,975,798 |
26,618,526 |
4,970,127 |
Adjusted earnings (loss)2 |
(8,669,641) |
9,461,797 |
20,516,612 |
5,153,652 |
Earnings (loss) attributable to shareholders of
the Company |
2,751,917 |
(16,979,679) |
17,561,639 |
(18,288,826) |
Adjusted earnings (loss) per
share3 |
(0.09) |
0.10 |
0.21 |
0.05 |
Earnings (loss) per share4 |
0.03 |
(0.17) |
0.18 |
(0.19) |
|
|
|
|
|
Cash and cash equivalents |
20,382,828 |
58,966,726 |
20,382,828 |
58,966,726 |
Working capital |
25,358,155 |
23,132,747 |
25,358,155 |
23,132,747 |
Equity |
241,766,324 |
204,777,722 |
241,766,324 |
204,777,722 |
|
|
|
|
|
Copper produced (lbs) |
12,543,000 |
9,303,020 |
42,809,000 |
9,649,150 |
Gold produced (oz) |
4,300 |
3,800 |
13,000 |
3,900 |
Silver produced (oz) |
77,200 |
75,000 |
287,000 |
77,600 |
|
|
|
|
|
Copper sold (lbs) |
12,081,000 |
5,812,230 |
45,936,000 |
5,812,230 |
Gold sold (oz) |
3,400 |
2,000 |
14,700 |
2,000 |
Silver sold (oz) |
81,800 |
44,600 |
330,000 |
44,600 |
Site cash costs per pound of copper produced (net
of gold, silver credits) (US$) |
2.75 |
1.93 |
1.90 |
2.03 |
Total cash costs per pound of copper sold (net of
gold, silver credits) (US$) |
3.25 |
1.40 |
2.41 |
1.40
|
Copper Mountain Mine
The Copper Mountain Mine produced 12.5 million
pounds of copper during the quarter ended September 30, 2012. During the quarter, the
mine completed three shipments of concentrate containing
approximately 12.1 million pounds of copper to Japan for smelting and recorded revenues, net
of smelter charges and pricing adjustments, of $46.6 million, realizing a gross loss of
$1.5 million. The total cash
cost of copper sold for the three months ended September 30, 2012 was US$3.25 per pound of copper after gold and silver
by-product credits.
Mining activities continued in the Pit #3 area
with the push-backs on the eastern wall and simultaneously two of
the production shovels were relocated to the Pit #2 area for the
commencement of mining activities there. During the quarter a total
of 15.0 million tonnes of material was mined, including 3.5 million
tonnes of ore and 11.0 million tonnes of waste, resulting in a 3 to
1 strip ratio and averaged 179,000 tonnes of per day moved during
the last month of the quarter, as compared to a planned rate of
172,500 tonnes. The projected life of mine strip ratio is 2
to 1 but higher in the early years. The increase in the
average mining rate per day during the quarter is attributable to
the commencement of mining activities in the Pit #2 area which
allowed the Company to modify the waste haul. The mined
ore is hauled to the 60 inch x 89 inch gyratory primary crusher
located northeast of Pit #3. The crushed ore is then conveyed 1
kilometer to the coarse ore stockpile.
Mill production was adversely affected during
the quarter due to a continuing failure of SAG mill grates, ball
mill motor modifications, and tailings line maintenance. These
interruptions affected operating time during the first month of the
quarter, resulting in lower than planned production and higher
costs for repair items that were expensed during the quarter.
Following the planned mill maintenance shutdown at the start of
August; whereby the newly designed grates were installed in the SAG
mill, and electrical modification to the ball mill motors were
made, as well as repairs to the tailings line, unscheduled downtime
has been decreased providing confidence that the mill can operate
at the planned 92 percent availability. Subsequent to the planned
maintenance shut down in early August, the Company has attained
design mill throughput and the Company is confident that it will
reach targeted production rates on a consistent basis in the last
quarter. Copper concentrate production during the quarter
totaled 12.5 million pounds of copper, 4,300 ounces of gold, and
77,200 ounces of silver. This brings total production to 45.9
million pounds of copper, 14,700 ounces of gold, and 330,000 ounces
of silver for the nine months ended September 30, 2012.
|
|
1 Calculated based on weighted average
number of shares outstanding under the basic method based on
earnings attributable to shareholders. |
2 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. |
3 Calculated based on weighted average
number of shares outstanding under the basic method based on
adjusted earnings. |
4 Calculated based on weighted average
number of shares outstanding under the basic method based on
earnings attributable to shareholders. |
Summarized Balance Sheet
|
September 30,
|
|
December 31,
|
|
2012 |
|
2011 |
|
$ |
|
$ |
Assets |
|
|
|
Current assets |
69,454,144 |
|
68,245,867 |
Reclamation bonds |
8,200,500 |
|
4,700,500 |
Property, plant and equipment |
512,507,512 |
|
520,051,062 |
Non-current ore stockpile |
20,350,733 |
|
5,540,890 |
|
610,512,889 |
|
598,538,319 |
Liabilities |
|
|
|
Current liabilities |
44,095,989 |
|
61,013,998 |
Decommissioning and restoration provision |
5,743,392 |
|
5,152,382 |
Interest rate swap liability |
12,111,559 |
|
10,610,394 |
Long-term debt |
306,795,625 |
|
308,390,897 |
|
368,746,565 |
|
385,167,671 |
Equity |
|
|
|
Share capital |
157,857,330 |
|
157,596,608 |
Contributed surplus |
9,062,166 |
|
6,602,387 |
Retained earnings (deficit) |
6,533,761 |
|
(11,027,878) |
Non-controlling interest |
68,313,067 |
|
60,199,531 |
Total equity |
241,766,324 |
|
213,370,648 |
|
610,512,889 |
|
598,538,319 |
Summarized Income
Statement |
|
Three months ended |
Nine months ended |
|
September
30, |
September
30, |
|
2012
|
2011
|
2012
|
2011
|
|
$ |
$ |
$ |
$ |
Revenue |
47,646,402 |
21,821,321 |
179,387,350 |
21,821,321 |
Cost of sales |
(49,151,141) |
(11,152,760) |
(147,403,513) |
(11,152,760) |
Gross profit (loss) |
(1,504,739) |
10,668,561 |
31,983,837 |
10,668,561 |
Other income and expenses |
|
|
|
|
|
General and administration |
(1,052,319) |
(943,267) |
(3,455,690) |
(2,929,889) |
|
Share based compensation |
(811,646) |
250,504 |
(1,909,621) |
(2,768,545) |
Operating income (loss) |
(3,368,704) |
9,975,798 |
26,618,526 |
4,970,127 |
|
|
|
|
|
Finance income |
310,828 |
144,606 |
1,256,603 |
853,912 |
Finance expense |
(1,763,226) |
(658,607) |
(6,072,661) |
(670,387) |
Unrealized loss (gain) on interest
rate swap |
71,580 |
(7,180,346) |
(3,259,889) |
(10,560,997) |
Unrealized loss (gain) on foreign
exchange |
8,988,290 |
(24,789,611) |
7,530,574 |
(17,370,734) |
Income before tax |
4,238,768 |
(22,508,160) |
26,073,153 |
(22,778,079) |
|
|
|
|
|
Income tax expense |
(94,273) |
- |
(1,049,034) |
- |
|
|
|
|
|
Net income and comprehensive income
for the period |
4,144,495 |
(22,508,160) |
25,024,119 |
22,778,079 |
|
|
|
|
|
Net income and comprehensive income
attributable to: |
|
|
|
|
|
Shareholders of the Company |
2,751,917 |
(16,979,679) |
17,561,639 |
(18,288,826) |
|
Non-controlling interest |
1,392,578 |
(5,528,481) |
7,462,480 |
(4,489,253) |
|
4,144,495 |
(22,508,160) |
25,024,119 |
(22,778,079) |
Earnings per share: |
|
|
|
|
|
Basic |
0.03 |
(0.17) |
0.18 |
(0.19) |
|
Diluted |
0.03 |
(0.17) |
0.17 |
(0.19) |
|
|
|
|
|
Weighted average shares
outstanding |
98,509,366 |
98,405,522 |
98,506,469 |
96,974,088 |
Shares outstanding at end of
period |
98,547,377 |
98,411,879 |
98,547,377 |
98,411,879 |
The full set of financial statements and
accompanying MD&A are posted on Sedar.com.
Copper Mountain will host a conference call on Thursday,
November 15th, 2012 at 10:30 a.m. Eastern Time (7:30 a.m. Pacific
Time) to discuss the 2012 third quarter 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/1064053/1156949
Replay call information
Vancouver and international: (416)-849-0833, passcode
64987346
North America (toll-free): 1-855-859-2056, passcode
64987346
The conference call replay will be available from 10:30 am
(PST) on November 15th, 2012, until 11:59 pm PST on November 22nd ,
2012
Participant audio webcast will also be available on the company's
website http://www.cumtn.com
|
Exploration Update:
During the quarter the Company continued with
its 2012 exploration program which forms the first part of an
ongoing exploration strategy for the property. The objectives of
the exploration program are threefold: determination of the
potential long-term pit limits, conversion of resources to reserves
in order to assist with near to mid-term mine planning and
continued exploration of new targets of mineralization adjacent to
the mine. There are currently two diamond drills on the
property which are focused on mineralization at depth in the
southern end of Pit #3 and around Pit #2. Results will
continue to be released as drilling progresses.
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
summer of 2011, and has continued to improve its operations during
the year; and attained design capacity in the summer of 2012. 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.
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