Copper Mountain Announces 2016 Year End Results
Copper Mountain Announces 2016 Year End Results
PR Newswire
VANCOUVER, Feb. 21, 2017
Web Site: www.CuMtn.com
TSX: CMMC
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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. |
VANCOUVER, Feb. 21, 2017 /PRNewswire/ - Copper Mountain Mining Corporation (TSX: CMMC) (the "Company" or "Copper Mountain") announces 2016 year end revenues of $278 million, after pricing adjustments and treatment charges, from the sale of 82.7 million pounds of copper, 29,900 ounces of gold, and 283,900 ounces of silver. Total cash cost for the year was US$1.54 per pound of copper sold, net of precious metals credits.
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2016 Highlights (100% CAD$ Basis) |
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Jim O'Rourke, President and CEO of Copper Mountain, remarked "During 2016, Copper Mountain continued to demonstrate improvement in production. Despite the challenging commodities price environment for most of the year, the mine has been cash flow positive from operations and has continued to focus on cost controls and production efficiencies. Total cash costs for the quarter decreased by 11.5% to US$1.54 per pound of copper sold net of precious metal credits and after all off-site charges, over 2015 total cash costs of US$1.74. Mine production was ahead of budget during the year with approximately 188,000 tonnes mined per day, well above our 2016 guidance of 174,000 tpd."
Mr. O'Rourke continued, "The increased production has produced an increase in capital resources. At the end of 2016 the Company had a total of $49 million of capital resources in the form of $31.4 million in cash and cash equivalents, $12.2 million in concentrate sales receivables, and $5.4 million of concentrate inventory waiting at the port to be shipped. We will continue to focus on cost control and operational improvements to further strengthen the Company's balance sheet."
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Summary Financial Results | ||||
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Three months ended December 31, |
Year ended December 31, | |||
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(In Thousands of CDN$, other than per share and per pound amounts) |
2016 $ |
2015 $ |
2016 $ |
2015 $ |
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Revenues |
84,523 |
50,018 |
277,996 |
241,987 |
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Gross profit (loss) |
17,521 |
(3,458) |
27,590 |
2,360 |
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Cash flow from operations |
22,518 |
3,450 |
46,937 |
21,582 |
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Operating income (loss) |
14,164 |
(30,625) |
12,924 |
(31,300) |
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Adjusted earnings (loss)1 |
8,775 |
1,534 |
(3,793) |
11,358 |
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Net Income (loss) |
2,881 |
(45,818) |
11,597 |
(102,871) |
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Earnings (loss) attributable to shareholders of the Company |
2,098 |
(35,066) |
7,723 |
(78,451) |
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Adjusted earnings per share2 |
0.07 |
0.01 |
0.06 |
0.10 |
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Earnings (loss) per share3 |
0.01 |
(0.29) |
(0.03) |
(0.66) |
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EBITDA |
20,423 |
(36,633) |
77,512 |
(54,960) |
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Adjusted EBITDA |
26,317 |
10,720 |
62,122 |
59,269 |
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Cash and cash equivalents |
31,409 |
12,190 | ||
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Working capital |
(791) |
(15,365) | ||
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Equity |
195,533 |
176,421 | ||
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Copper produced (lbs) |
20,800,000 |
19,400,000 |
82,900,000 |
77,600,000 |
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Gold produced (oz) |
7,100 |
7,300 |
30,800 |
29,200 |
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Silver produced (oz) |
71,100 |
60,000 |
291,900 |
276,300 |
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Copper sold (lbs) |
21,000,000 |
18,000,000 |
82,700,000 |
79,800,000 |
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Gold sold (oz) |
7,200 |
7,800 |
29,900 |
29,500 |
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Silver sold (oz) |
83,300 |
62,400 |
283,900 |
287,100 |
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Site cash costs per pound of copper produced (net of gold, silver credits) (US$) |
1.25 |
1.21 |
1.12 |
1.25 |
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Total cash costs per pound of copper sold (net of gold, silver credits) (US$) |
1.64 |
1.66 |
1.54 |
1.74 |
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1 |
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. | |||||
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2 |
Calculated based on weighted average number of shares outstanding under the basic method based on adjusted earnings. | |||||
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3 |
Calculated based on weighted average number of shares outstanding under the basic method based on earnings attributable to shareholders. | |||||
Copper Mountain Mine
During 2016, the Company shipped and sold 82.7 million pounds of copper, 29,900 ounces of gold, and 283,900 ounces of silver which generated $278 million in revenue net of treatment and refining charges and pricing adjustments. Site cash costs were US$1.12 per pound of copper produced and total cash costs were US$1.54 per pound sold, net of precious metal compared to site cash costs of US$1.25 per pound of copper produced and total cash costs of US$1.74 per pound of copper sold, net of precious metal credits for 2015. The increase in revenue is a result of stronger sales volumes as compared to the same period last year, a higher gold price as precious metals account for about 20% of the revenue, and a higher foreign exchange rate for the US dollar as all sales are in US dollars.
Mining activities during the year continued to be focused mainly in the Pit #2 area as well as the Virginia pit area up until the end of the third quarter of 2016. During the year a total of 68.8 million tonnes of material was mined, including 23.4 million tonnes of ore and 45.4 million tonnes of waste for a strip ratio of 1.94:1 for the 2016 year. During the quarter, the mine continued utilizing the short waste haul opportunities and focused on maximizing haul truck hours. For the year the mine averaged 188,000 tonnes per day moved at an average mining cost of $1.69 per tonne.
During the year the mill processed a total of 14.2 million tonnes of ore grading 0.324% copper to produce 82.9 million pounds of copper, 30,800 ounces of gold, and 291,900 ounces of silver. Mill recoveries were 81.6% for the year while mill operating time was 92.1%. Mill throughput increased during the year as mine site staff continued to optimize the mill operation. The mill achieved an average throughput rate of 38,900 tpd for the 2016 year and ended the year strong with a mill throughput rate of 42,100 tpd for the last three months of 2016
Listed below is a summarized balance sheet and income statement as well as details for our conference call schedule:
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Summarized Balance Sheet | ||
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December 31, 2016 $ |
December 31, 2015 $ | |
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Assets |
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Cash |
31,409 |
12,190 |
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Accounts Receivable and prepaids |
26,048 |
11,990 |
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Inventory |
48,465 |
44,882 |
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Property, plant and equipment |
463,080 |
519,750 |
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Other Assets |
78,788 |
58,494 |
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647,790 |
647,306 | |
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Liabilities |
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Current liabilities |
106,713 |
84,427 |
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Electricity deferral |
15,385 |
- |
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Decommissioning and restoration provision |
6,312 |
7,787 |
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Interest rate swap liability |
4,088 |
7,061 |
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Long-term debt |
319,759 |
371,610 |
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452,257 |
470,885 | |
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Equity |
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Share capital |
194,208 |
188,306 |
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Contributed surplus |
14,773 |
12,929 |
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Retained earnings (deficit) |
(73,656) |
(81,379) |
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Non-controlling interest |
60,208 |
56,565 |
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Total equity |
195,533 |
176,421 |
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647,790 |
647,306 | |
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Summarized Income Statement | ||||
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Three months ended December 31, |
Year ended December 31, | |||
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(CDN$) |
2016 $ |
2015 $ |
2016 $ |
2015 $ |
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Revenues |
84,523 |
20,018 |
277,996 |
241,987 |
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Cost of sales4 |
(67,002) |
(53,477) |
(250,406) |
(239,627) |
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Gross profit |
17,521 |
(3,459) |
27,590 |
2,360 |
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Other income and expenses |
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General and administration |
(1,150) |
(464) |
(5,594) |
(6,138) |
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Property investigation |
(338) |
(1,476) |
(338) |
(1,476) |
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Low grade stockpile write-down |
(1,685) |
(25,000) |
(7,924) |
(25,000) |
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Share based compensation |
(184) |
(227) |
(810) |
(1,046) |
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Operating income (loss) |
14,164 |
(30,626) |
12,924 |
(31,300) |
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Low grade stockpile write-down |
1,685 |
25,000 |
7,924 |
25,000 |
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Pricing adjustments on concentrate and metal sales |
(3,134) |
7,495 |
(11,041) |
21,421 |
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Finance income |
56 |
32 |
199 |
244 |
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Finance expense |
(3,418) |
(2,824) |
(12,642) |
(10,614) |
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Current resource tax (expense) recovery |
(578) |
369 |
(1,157) |
(219) |
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Deferred income and resource tax recovery |
- |
2,087 |
- |
6,826 |
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Adjusted earnings5 (loss) |
8,775 |
1,533 |
(3,793) |
11,358 |
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Pricing adjustments on concentrate and metal sales |
3,134 |
(7,495) |
11,041 |
(21,421) |
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Unrealized gain (loss) on interest rate swap |
2,580 |
1,623 |
(91) |
(2,315) |
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Low grade stockpile write-down |
(1,685) |
(25,000) |
(7,924) |
(25,000) |
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Unrealized (loss) gain on foreign exchange |
(9,923) |
(16,481) |
13,007 |
(65,493) |
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Loss on sale of fixed asset |
- |
- |
(643) |
- |
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Net income (loss) and comprehensive income (loss) for the period |
2,881 |
(45,820) |
11,597 |
(102,871) |
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Net income (loss) and comprehensive income (loss) attributable to: |
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Shareholders of the company |
2,098 |
(35,066) |
7,723 |
(78,451) |
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Non-controlling interest |
783 |
(10,752) |
3,874 |
(24,420) |
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2,881 |
(45,818) |
11,597 |
(102,871) | |
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Income (loss) per share |
0.01 |
(0.29) |
0.06 |
(0.66) |
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Adjusted earnings per share |
0.07 |
0.01 |
(0.03) |
0.10 |
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The full set of financial statements and accompanying MD&A are posted on Sedar.com. | ||||
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4 |
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. | ||||||
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5 |
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. | ||||||
Exploration Update:
Exploration – Mine
During the second half of 2016 the Company completed a 5,000 meter drill program. The drill program was designed to convert inferred resources into measured and indicated status on the western end of Pit 2. The program was successful in converting blocks, increasing grade, lowering strip ratio, and extending mineralization further to the west. Redesign of the open pit in the newly drilled area is being completed and will result in an increase to the reserve base. The Company intends to follow up this successful drill program in the summer of 2017.
Exploration – Generative
A 570 line-km GEOTECH helicopter-borne Z-TEM survey was undertaken and completed over the Fenton project area as well as a number of other company owned properties in the region. Results of the survey will help target areas for further drill testing of the Fenton property and help evaluate the exploration potential of our other properties in the region, in conjunction with recently completed geochemical programs. The exploration team continues to investigate and evaluate early and advanced-exploration properties as well as development projects, which are predominately located within the Americas.
About Copper Mountain Mining Corporation:
Copper Mountain's flagship asset is the 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 25% of the mine. The Copper Mountain mine has a large resource of copper that remains open laterally and at depth. This significant exploration potential will be explored over the next few years in order to fully appreciate the property's full development potential. Additional information is available on the Company's web page at www.CuMtn.com.
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The conference call and audio webcast will be held on Tuesday, February 21, 2017 at 7:30 am (Pacific Standard Time) and will be followed by a question-and-answer period with investors.
Live Dial-in information The conference call replay will be available from 10:30 am (PST) on Tuesday, February 21, 2017, until 11:59 pm PST on Monday, March 6th, 2017. |
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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