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 $233.1 million after pricing adjustments and treatment charges for the year ended December 31, 2013 from the sale of 64.8 million pounds of copper, 24,200 ounces of gold, and 301,300 ounces of silver.
| Year End 2013 Highlights (100% Basis) |
|
____________________________
1 EBITDA represents earnings before interest, income taxes and depreciation
2 Adjusted EBITDA removes unrealized gains/ losses on derivative instruments and foreign exchange gains/ losses
Jim O'Rourke, President and CEO of Copper Mountain, remarked "The mine achieved record production in 2013 and ended the year on a strong note. Copper production grew by 17% from the prior year and was within guidance. The mine delivered improving operational results quarter over quarter in production, throughput, and mill availability."
Mr. O'Rourke continued, "Looking forward, we see the next twelve months as a period of growth. We are forecasting a 25% growth in copper production in 2014 with the installation of the secondary crusher in mid summer. I am confident that we will exit 2014 a much stronger company as we focus on operational improvements and delivering strong results as we rebuild our credibility to prepare for exciting future developments."
| Summary Financial Results | ||||
| Three months ended December 31, |
Year ended December 31, |
|||
| (CDN$, 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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