Copper Mountain Announces 2014 Year End Results
Web Site: www.CuMtn.com
TSX: CUM
| 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. 20, 2015 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain") announces revenues of $265.7 million after pricing adjustments and treatment charges for the year ended December 31, 2014 from the sale of 80.7 million pounds of copper, 24,700 ounces of gold, and 427,600 ounces of silver.
Year End 2014 Highlights (100% Basis)
- Copper, gold and silver production for the 2014 fiscal year at Copper Mountain Mine (100%) was 81 million pounds of copper, 22,600 ounces of gold and 443,800 ounces of silver. This represents a 23% growth in copper production from 2013.
- Revenues for the 2014 year were $265.7 million from metal sales.
- Gross profit for the year was $31.8 million.
- Cash flow from operations was $47.2 million or $0.40 per share an increase of 48% over the previous year.
- Adjusted EBITDA[1] of $78.8 million, an increase of 35% over the previous year.
- Adjusted earnings per share1 of $28.7 million or $0.24 per share
- Mine production increased, with the addition of the new mine dispatch system, exiting 2014 at a rate of 175,000 TPD mined.
- Mill capacity improved during the year, with the addition of the permanent secondary crusher, exiting 2014 at a rate of 36,200 tpd for the last two weeks of December
- Site cash costs for the year was US$1.49 per pound of copper produced net of precious metal credits.
- Total cash costs for the year was US$1.98 per pound of copper sold net of precious metal credits and after all off- site charges.
- Realized prices on metal sales for 2014 was $3.11 per pound of copper, $1,266 per ounce of gold and $19.08 per ounce of silver.
Jim O'Rourke, President and CEO of Copper Mountain, remarked "The mine achieved record production in 2014 and ended the year with the addition of the new permanent $40 million secondary crusher which in turn increased mill throughput above 35,000 tpd design capacity. Copper production increased 22% from the prior year and was within guidance. Clearly the secondary crusher has made a significant improvement on the operational performance of the concentrator by delivering a consistent feed size of ore to the SAG mill".
Mr. O'Rourke continued, "Looking forward, we see the next twelve months as a period of continued optimization to further strengthen our operating base. Production for 2015 will come mainly from the Pit 2 area providing higher gold production. We have a strong operating team and I am confident that the mine will meet our production goals and be able to reduce costs to help offset the weaker copper price".
Summary Financial Results
| Three months ended December 31, |
Year ended December 31, |
|||
| (CDN$, except for cash cost data in US$) |
2014 $ |
2013 $ |
2014 $ |
2013 $ |
| Revenues |
53,913,648 |
64,714,231 |
265,675,927 |
233,122,274 |
| Gross profit (loss) |
1,444,734 |
8,234,296 |
31,760,280 |
31,033,666 |
| Cash flow from operations |
17,409,412 |
15,450,111 |
47,196,650 |
31,851,327 |
| Operating income (loss) |
498,220 |
6,719,364 |
23,011,351 |
25,498,442 |
| Adjusted earnings (loss)2 |
5,635,758 |
4,724,691 |
28,745,338 |
14,544,023 |
| Net Income (loss) |
(16,245,042) |
(4,145,430) |
(22,530,950) |
(3,414,357) |
| Earnings (loss) attributable to shareholders of the Company |
(12,703,961) |
(2,803,695) |
(18,220,950) |
(3,245,051) |
| Adjusted earnings (loss) per share3 |
0.05 |
0.05 |
0.24 |
0.15 |
| Earnings (loss) per share4 |
(0.11) |
(0.03) |
(0.15) |
(0.03) |
| EBITDA |
(4,833,890) |
6,594,093 |
27,501,470 |
40,501,071 |
| Adjusted EBITDA |
17,046,910 |
15,464,214 |
78,777,758 |
58,459,451 |
| Cash and cash equivalents |
21,600,228 |
42,281,137 |
||
| Working capital |
18,030,678 |
42,649,596 |
||
| Equity |
280,140,008 |
288,500,630 |
||
| Copper produced (lbs) |
20,259,000 |
18,600,000 |
80,941,000 |
66,200,000 |
| Gold produced (oz) |
6,100 |
4,300 |
22,600 |
21,600 |
| Silver produced (oz) |
101,100 |
105,800 |
443,800 |
320,400 |
| Copper sold (lbs) |
17,648,000 |
18,492,000 |
80,748,000 |
64,841,000 |
| Gold sold (oz) |
4,100 |
6,600 |
24,700 |
24,200 |
| Silver sold (oz) |
100,200 |
89,000 |
427,600 |
301,300 |
| Site cash costs per pound of copper produced (net of gold, silver credits) (US$) |
1.54 |
1.68 |
1.49 |
1.70 |
| Total cash costs per pound of copper sold (net of gold, silver credits) (US$) |
1.94 |
2.19 |
1.98 |
2.22 |
Copper Mountain Mine
During the year, the company completed fourteen shipments of concentrate containing approximately 80.7 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $266 million, realizing a gross profit of $32 million. The total cash cost of copper sold for the year ended December 31, 2013 was US$1.99 per pound of copper net of gold and silver by-product credits.
Mining activities continued in the Pit 2 and Pit 3 areas throughout 2014. The new mine dispatch system has proven to be a valuable tool to maximize haulage truck load factors and improve mining efficiencies. A total of 60 million tonnes of material was mined, including 18.8 million tonnes of ore and 41.3 million tonnes of waste at an average mining rate of 175,000 tpd moved during 2014. The ore grade averaged 0.40% Copper for the year. Site cash costs were $1.49 per pound of copper after gold and silver by-product credits.
Mill throughput from the concentrator was improved more than 10% during 2014 as compared to 2013. During the first quarter of 2014, SAG mill throughput was averaging about 29,280 tpd while utilizing temporary portable crushers and by year end mill throughput had increased 24% to an average of 36,200 tpd for the last two weeks of December. The improvement in mill throughput during the year was a direct result of feeding the SAG mill with finer ore. Construction of the $40 million secondary crusher was completed on time and on budget by the end of July 2014. Commissioning of the crusher commenced immediately and by the end of the third quarter a marked improvement in production was noted. Some technical and mechanical issues limited the crusher's ability to run at 100% of designed capacity but these were resolved in the fourth quarter. At the end of the year the secondary crusher was operating at designed capacity and the finer mill feed provided the increased milling rate as planned.
The mine exited the year on a positive note with copper production at 20,300 million pounds of copper, 6,100 ounces of gold and 101,000 ounces of silver during the three months of operations ended December 31, 2014. This brought production for the twelve months ended December 31, 2014 to 81 million pounds of copper, 22,600 ounces of gold and 443,700 ounces of silver.
Listed below are a summarized balance sheet and income statement as well as details for our conference call schedule:
Summarized Balance Sheet
| December 31, 2014 $ |
December 31, 2013 $ |
|
| Assets |
||
| Cash |
21,600,228 |
42,281,137 |
| Accounts Receivable and prepaids |
6,886,175 |
17,953,700 |
| Inventory |
44,420,673 |
26,789,416 |
| Property, plant and equipment |
559,118,221 |
531,890,214 |
| Other Assets |
60,637,691 |
44,166,934 |
| 692,662,988 |
663,081,401 |
|
| Liabilities |
||
| Current liabilities |
54,876,398 |
44,374,657 |
| Decommissioning and restoration provision |
7,797,154 |
6,245,963 |
| Interest rate swap liability |
7,180,836 |
6,364,019 |
| Long-term debt |
332,902,291 |
311,241,671 |
| Deferred tax liability |
9,766,301 |
6,354,461 |
| 415,522,980 |
374,580,771 |
|
| Equity |
||
| Share capital |
188,306,341 |
186,291,105 |
| Contributed surplus |
11,818,044 |
9,662,977 |
| Retained earnings (deficit) |
(2,928,184) |
15,292,029 |
| Non-controlling interest |
82,943,807 |
77,254,519 |
| Total equity |
280,140,008 |
288,500,630 |
| 692,662,988 |
663,081,401 |
Summarized Income Statement
| Three months ended December 31, |
Year ended December 31, |
|||
| (CDN$) |
2014 $ |
2013 $ |
2014 $ |
2013 $ |
| Revenues |
53,913,648 |
64,714,231 |
265,675,927 |
233,122,274 |
| Cost of sales5 |
(52,468,914) |
(56,479,935) |
(233,915,647) |
(202,088,608) |
| Gross profit |
1,444,734 |
8,234,296 |
31,760,280 |
31,033,666 |
| Other income and expenses |
||||
| General and administration |
(1,408,646) |
(1,514,514) |
(5,995,452) |
(5,493,368) |
| Share based compensation |
462,132 |
(418) |
(2,753,477) |
(41,856) |
| Operating income |
498,220 |
6,719,364 |
23,011,351 |
25,498,442 |
| Pricing adjustments on concentrate and metal sales |
6,760,792 |
(185,387) |
17,899,517 |
1,031,760 |
| Finance income |
6,240 |
171,365 |
197,148 |
387,438 |
| Finance expense |
(2,358,197) |
(2,390,128) |
(8,971,230) |
(8,773,795) |
| Current resource tax expense |
(149,202) |
602,290 |
(985,610) |
(632,750) |
| Deferred income and resource tax recovery |
877,905 |
(192,813) |
2,405,838 |
(2,967,072) |
| Adjusted earnings6 |
5,635,758 |
4,724,691 |
28,745,338 |
14,544,023 |
| Pricing adjustments on concentrate and metal sales |
(6,760,792) |
185,387 |
(17,899,517) |
(1,031,760) |
| Unrealized gain (loss) on interest rate swap |
(2,464,087) |
(57,270) |
(4,779,505) |
2,217,428 |
| Unrealized gain (loss) on foreign exchange |
(12,625,921) |
(8,998,238) |
(28,597,266) |
(19,144,048) |
| Net income (loss) and comprehensive income (loss) for the period |
(16,245,042) |
(4,145,430) |
(22,530,950) |
(3,414,357) |
| Net income (loss) and comprehensive income (loss) attributable to: |
||||
| Shareholders of the company |
(12,703,961) |
(2,803,695) |
(18,220,213) |
(3,245,051) |
| Non-controlling interest |
(3,541,081) |
(1,341,735) |
(4,310,737) |
(169,306) |
| (16,245,042) |
(4,145,430) |
(22,530,950) |
(3,414,357) |
|
| Earnings (loss) per share |
(0.11) |
(0.03) |
(0.15) |
(0.03) |
| Adjusted earnings per share |
0.05 |
0.05 |
0.24 |
0.15 |
The full set of financial statements and accompanying MD&A are posted on Sedar.com.
2015 Guidance:
The 2015 guidance is based on mining at a rate of 185,000 tonnes per day to mine a total of 16.6 million tonnes of high grade material, 13.8 million tonnes of low grade material, 37 million tonnes of waste at a strip ratio of 1.22 to 1. Mining costs are estimated to be $1.75 per tonne mined. Mill production is based on achieving 37,500 tpd through the mill at an average head grade of 0.33% Cu (0.41% CuEq) and recoveries of 82% to produce about 100 million pounds of copper equivalent which includes about 80 million pounds of copper, 35,000 ounces of gold, and 290,000 ounces of silver.
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. The key development for 2014 was the installation of the secondary crusher as a permanent solution to maximize concentrator throughput and improve overall efficiencies for the company. Secondary crusher construction was completed by the end of July 2014 on budget and on schedule. The 18,000 acre site has a large resource of copper that 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 property's full development potential. Additional information is available on the Company's web page at www.CuMtn.com.
| The Conference call has been changed by one business day from the original scheduled date to accommodate management's travel schedule. A conference call and audio webcast will now be held on Monday February 23th, 2015 at 7:00 am (Eastern Standard Time) for management to discuss the 2014 year end results. This discussion will be followed by a question-and-answer period with investors. Live Dial-in information Replay call information The conference call replay will be available from 10:00 am (EST) on February 23, 2015 until 11:59 pm PST on March 9, 2015.
|
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.
1 Adjusted EBITDA and adjusted earnings per share are non-GAAP financial measurements which remove unrealized gains/ losses on derivative instruments and foreign exchange gains/ losses
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.
5 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.
6 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.
SOURCE Copper Mountain Mining Corporation
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