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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
TSX: CUM

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
  • EBITDA1 and Adjusted EBITDA2 were $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 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 "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

December 31,

Year ended

December 31,

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

2013

$

2012

(restated)

$

2013

$

2012

(restated)

$
         

Revenues

64,714,231

50,086,260

233,122,274

229,473,610

Gross profit (loss)

8,234,296

10,327,657

31,033,666

55,622,509

Operating income (loss)

6,719,364

8,985,058

25,498,442

48,914,599

Adjusted earnings (loss)3

4,724,691

7,156,459

14,544,023

40,984,085

Net Income (loss)

(4,145,430)

2,138,226

(3,414,357)

40,473,360

Earnings (loss) attributable to shareholders of the Company

(2,803,695)

2,020,058

(3,245,051)

29,564,958

Adjusted earnings (loss) per share4

0.05

0.07

0.15

0.42

Earnings (loss) per share5

(0.03)

0.02

(0.03)

0.30

EBITDA

6,594,093

10,803,652

40,501,071

74,660,552

Adjusted EBITDA

15,464,214

15,821,885

58,459,451

75,171,277

         

Cash and cash equivalents

   

42,281,137

24,300,790

Working capital

   

42,649,596

10,676,254

Equity

   

288,500,630

257,056,502

         

Copper produced (lbs)

18,600,000

13,780,000

66,200,000

56,600,000

Gold produced (oz)

4,300

5,800

21,600

18,900

Silver produced (oz)

105,800

66,700

320,400

354,000

         

Copper sold (lbs)

18,492,000

13,185,000

64,841,000

59,122,000

Gold sold (oz)

6,600

5,200

24,200

19,900

Silver sold (oz)

89,000

71,600

301,300

402,000

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

1.68

1.65

1.70

1.59

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

2.19

2.13

2.22

2.09

____________________________
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 by-product credits.

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,
2013
$
December 31,
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
December 31,
Year ended
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 administration (1,514,514) (797,283) (5,493,368) (4,252,973)
Share based compensation (418) (545,316) (41,856) (2,454,937)
Operating income 6,719,364 8,985,058 25,498,442 48,914,599
         
Pricing adjustments on concentrate and metal sales (185,387) 1,878,416 1,031,760 1,641,593
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 tax expense 602,290 (252,186) (632,750) (1,301,220)
Deferred income and resource tax recovery (192,813) (1,453,660) (2,967,072) (1,453,660)
Adjusted earnings8 4,724,691 7,156,459 14,544,023 40,984,085
         
Pricing adjustments on concentrate and metal sales 185,387 (1,878,416) (1,031,760) (1,641,593)
Unrealized gain (loss) on interest rate swap (57,270) (394,705) 2,217,428 (3,654,594)
Unrealized gain (loss) on foreign exchange (8,998,238) (2,745,112) (19,144,048) 4,785,462
Net income (loss) and comprehensive income (loss) for the period (4,145,430) 2,138,226 (3,414,357) 40,473,360
         
Net income (loss) and comprehensive income (loss) attributable to:        
Shareholders of the company (2,803,695) 2,020,058 (3,245,051) 29,564,958
Non-controlling interest (1,341,735) 118,168 (169,306) 10,908,402
  (4,145,430) 2,138,226 (3,414,357) 40,473,360
         
Earnings (loss) per share (0.03) 0.02 (0.03) 0.30
Adjusted earnings per share 0.05 0.07 0.15 0.42

____________________________
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 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 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

"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

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