Copper Mountain Mining Announces Strong Q2 2020 Financial Results

ID: 1559795
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(PresseBox) - Copper Mountain Mining Corporation (TSX: CMMC | ASX:C6C) (the ?Company? or ?Copper Mountain? - https://www.commodity-tv.com/ondemand/companies/profil/copper-mountain-mining-corp/ ) announces strong second quarter 2020 financial and operating results.& Analysis (?MD&A?) are available at www.CuMtn.com and www.sedar.com.

Q2 2020 HIGHLIGHTS

- Exceeded revised operating plan announced March 10, 2020 with Q2 2020 production of 23.9 million pounds of copper equivalent (comprising of 18.1 million pounds of copper, 7,499 ounces of gold and 86,126 ounces of silver).

- Reduced cash cost per pound significantly in Q2 2020:

C1 cash cost per pound of copper produced was US$1.48 compared to US$1.74 in Q2 2019.

All in sustaining cost (AISC) per pound of copper was US$1.67 compared to US$1.85 in Q2 2019.

All-in cost (AIC) per pound of copper was US$1.67 compared to US$2.35 in Q2 2019.

- Increased revenue to $91 million compared to $65 million in Q2 2019

- Increased gross profit to $30.3 million compared to $1.6 million in Q2 2019

- Increased earnings per share to $0.12 compared to $0.01 in Q2 2019

- Increased cash flow from operations before working capital changes to $41.5 million compared to $4.7 million in Q2 2019.

- Completed the installation of Direct Flotation Reactors in July on schedule and on budget.

- Completed updated Eva Copper Feasibility Study (announced May 7, 2020) demonstrating improved economic and operating metrics, including:

After-tax NPV (8%) of US$437 million and an after-tax IRR of 29%.

Total production of 1.5 billion pounds of copper over a 15-year mine life.

C1 cash costs of US$1.44 per pound of copper, net of by-product credits.



?We are pleased to have achieved such a strong quarter despite the global impact of the COVID-19 virus and the associated lower copper price environment,? commented Gil Clausen, Copper Mountain?s President and CEO. ?The positive outcome was a direct result of our quick response in implementing a revised mine plan in early March, demonstrating the flexibility of the Copper Mountain Mine plan and our team?s ability to adapt quickly to changing market conditions. More importantly, we prioritized the health and safety of our employees and we have had no confirmed or presumptive cases of COVID-19 at any of our operations.?

Mr. Clausen continued, ?With higher metal prices and lower costs, our objective is to build our cash position to allow for a rapid restart of the second stage of the mill expansion project, the installation of the third ball mill. The first stage of our 45,000 tonnes per day (TPD) mill expansion, the installation of the direct flotation reactors, was completed in early July. The Company has also maintained spending on long lead time items associated with the Ball Mill #3 installation and we anticipate recommencing construction in late 2020 or early 2021.?

As announced on March 10, 2020, the Company implemented a revised operating plan for 2020 in reaction to the global COVID-19 pandemic and the resulting lower copper price environment. The revised operating plan was focused on maintaining positive margins and cash flow. During the second quarter of 2020 the Company continued to operate on this revised plan, with results exceeding expectations.

In Q2 2020, the Copper Mountain Mine produced 23.9 million pounds of copper equivalent (comprised of 18.1 million pounds of copper, 7,499 ounces of gold, and 86,126 ounces of silver) as compared to 22.1 million pounds of copper equivalent (comprised of 18.4 million pounds of copper, 6,922 ounces of gold, and 65,707 ounces of silver) in Q2 2019.

C1 cash cost per pound of copper produced, net of by-product credits, for Q2 2020 was US$1.48, as compared to US$1.74 in Q2 2019.

AIC per pound of copper produced for Q2 2020 was US$1.67 as compared to US$2.35 for Q2 2019.

The significant decrease in C1, AISC, and AIC recognized in Q2 2020 as compared to past quarters was a result of the Company?s cost savings initiatives and operating efficiencies at the Copper Mountain mine, supplemented by an increase in precious metals prices and production for Q2 2020.

In Q2 2020, revenue was $91.1 million, net of pricing adjustments and treatment charges, compared to $65.1 million in Q2 2019.

Cost of sales in Q2 2020 was $60.8 million as compared to $63.5 million for Q2 2019.. This is compared to Q2 2019 cost of sales which was net of $12.0 million of deferred stripping and $1.9 million low-grade stockpile costs.

The Company reported net income of $31.9 million for Q2 2020 as compared to net income of $2.5

Revenue in Q2 2020 included a large positive mark to market and final adjustment from provisional pricing on concentrate sales, as mentioned above.

The inclusion of a non-cash unrealized foreign exchange gain of $14.5

On adjusted basis, the Company recorded a net loss of $1.5 million in Q2 2020, compared to $0.01 million in Q2 2019.

PROJECT DEVELOPMENT UPDATE

Copper Mountain Mill Expansion

During Q2 2020, the Company completed the first stage of the 45,000 TPD mill expansion project with the installation of Direct Flotation Reactors (DFRs). The DFRs will increase the efficiency and the capacity of the current cleaner circuit, which is expected to increase copper concentrate grade from about 25% to 28%, resulting in lower concentrate transportation, smelting and refining costs.

As noted in Q1 2020, as a result of COVID-19, the Company deferred most major capital spend and therefore halted work on the second stage of the Ball Mill expansion plans of the existing Copper Mountain Mine, which is the installation of the third ball mill.rating plan and build its cash position with the target to restart the second stage of the Ball Mill expansion project at the end of 2020 or early 2021, dependent on market conditions.

Eva Copper Project

The Company completed an updated Eva Copper 2020 Feasibility Study and announced its results on May 7, 2020, which demonstrated improved economics and operating metrics, including a higher after-tax NPV, increased production, lower cash costs and a longer mine life, when compared to the prior 2018 Feasibility Study results.

Results included:

After-tax NPV at an 8% discount of US$437 million and an after-tax IRR of 29%.

Total production of 1.5 billion pounds of copper over a 15-year mine life.

C1 cash costs of US$1.44 per pound of copper, net of by product credits

Total initial development capital of US$382 million.

2020 OUTLOOK

The Company reaffirms its 2020 production and AIC guidance of 70 to 75 million pounds of copper and US$2.20 and US$2.35 per pound of copper produced, respectively. Copper production is expected to be more heavily weighted to the second half of the year, as a result of higher grades and as the Company begins to mine coarser grained ore areas that have higher recovery associated with them. AIC for the first half of 2020 is below the AIC guidance and although the Company expects to continue to operate at lower costs in the second half, the Company is not adjusting guidance at this time given any uncertainty that may arise from unforeseen impacts that COVID-19 may have in the future. by quarter basis.

Q2 2020 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST

Copper Mountain will host a conference call on Wednesday, July 29, 2020 at 7:30 am (Pacific Time) for senior management to discuss the second quarter 2020 results.

Dial-in information:

Toronto and international: 647-427-7450

North America (toll-free): 1-888-231-8191

To participate in the webcast live via computer go to:

https://produceredition.webcasts.com/starthere.jsp?ei=1339910&tp_key=930bdc54ab

Replay Call Information

Toronto and international: 416-849-0833, Passcode: 1289867

North America (toll-free): 1-855-859-2056, Passcode: 1289867

The conference call replay will be available until 8:59 pm (Pacific Time) on August 5, 2020. An archive of the audio webcast will also be available on the company?s website at http://www.cumtn.com.

2020 ANNUAL GENERAL MEETING

The Company will be holding its 2020 Annual Meeting of Shareholders on Wednesday, September 9, 2020 at 2:00 pm (Vancouver Time).

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 Copper Mountain mine currently produces approximately 90 million pounds of copper equivalent, with average annual production expected to increase to approximately 120 million pounds of copper equivalent.?C6C?.

Additional information is available on the Company?s web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION

?Gil Clausen?

Gil Clausen, P.Eng.

President and Chief Executive Officer

For further information, please contact:

Letitia Wong

Vice President Corporate Development & Investor Relations

Telephone: 604-682-2992

Email: Letitia.Wong(at)CuMtn.com

Website: www.CuMtn.com

In Europe:

Swiss Resource Capital AG

Jochen Staiger

info(at)resource-capital.ch

www.resource-capital.ch

Cautionary Note Regarding Forward-Looking Statements

This news release may contain forward-looking statements and forward-looking information (together, ?forward-looking statements?) within the meaning of applicable securities laws.ng statement, whether as a result of new information, future events or otherwise.



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Date: 07/29/2020 - 10:58
Language: English
News-ID 1559795
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