Copper Mountain Mining Announces Strong Q3 2020 Financial Results, Reduces All-in Cost Guidance
(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 third quarter 2020 financial and operating results.& Analysis (?MD&A?) are available at www.CuMtn.com and www.sedar.com.
Q3 2020 HIGHLIGHTS
Production for Q3 2020 was 23.8 million pounds of copper equivalent (comprised of 18.9 million pounds of copper, 6,630 ounces of gold, and 81,418 ounces of silver).
C1 cash cost for Q3 2020 was US$1.27/lb copper produced, all in sustaining cost (AISC) was US$1.43/lb copper and all-in cost (AIC) was US$1.68/lb copper.
Revenue for Q3 2020 was $95.0 million, from the sale of 17.8
Gross profit for Q3 2020 was $42.0 million and net income was $33.2 million.
Earnings per share was $0.13 per share, or $0.08 on an adjusted basis.
Cash flow from operations (before working capital changes) for Q3 2020 was $47.0 million as compared to negative $2.1 million for Q3 2019.
Cash and cash equivalents at the end of Q3 2020 was $53.6 million, an increase of $24.6 million during the quarter when compared to the end of the second quarter.
AIC guidance for 2020 was reduced to a range of US$1.85 to US$2.00 per pound of copper from a range of US$2.20 to US$2.35 per pound, while production guidance was maintained at 70 to 75 million pounds of copper with the expectation to achieve the higher end of the production range.
?We posted another strong quarter and continued to exceed our revised operating plan with solid operating and financial results,? commented Gil Clausen, Copper Mountain?s President and CEO. ?We expect production to continue to increase in the fourth quarter with higher grades and recoveries, at low cost.20 production guidance but expect to end the year at the top end of the range.?
?Our plan is to continue to build upon our healthy cash position in anticipation of restarting construction of the third ball mill in early 2021, which is the last stage to complete our 45,000 tonnes per day mill expansion project. We have commenced activities to prepare for construction and forecast commissioning by the end of Q3 2021. The installation of the third ball mill is expected to increase production by 15 to 18% as a result of higher throughput and improved metal recoveries while maintaining the mill head grade. This is the first step of our multi-tier growth plan. This growth pipeline includes a further mill expansion to 65,000 tonnes per day at the Copper Mountain Mine. We expect to publish a technical report in Q4 on this expansion plan. In addition, the Eva Copper Project is being advanced and we are currently developing project financing options and evaluating potential project partners. Our seasoned team continues to steadily de-risk and advance our organic growth plans.?
During the third quarter of 2020, the Company continued to operate under the revised operating plan announced in March of 2020.
The mine processed a total of 3.7 million tonnes of ore during the quarter as compared to 3.6 million tonnes in Q3 2019.ve the higher end of its guidance range for the year.
C1 cash cost per pound of copper produced for Q3 2020 decreased 40% to US$1.27, as compared to US$2.12 in Q3 2019.
All-in sustaining cost per pound of copper produced (AISC) in Q3 2020 decreased 37% to US$1.43, as compared to US$2.28 in Q3 2019.
Total all-in cost per pound of copper produced (AIC), net of credits, for Q3 2020 decreased 37% to US$1.68, as compared to US$2.67 in Q3 2019.
The significant decrease in C1, AISC, and AIC recognized in Q3 2020 as compared to past quarters was a result of the Company?s strong copper production, cost savings initiatives and operating efficiencies at the Copper Mountain mine, supplemented by an increase in precious metals prices and production for Q3 2020.
In Q3 2020, revenue was $95 million, net of pricing adjustments and treatment charges, compared to $62.7 million in Q3 2019.
Cost of sales in Q3 2020 was $53.0 million as compared to $64.1 million for Q3 2019.mpany allocated $6.4 million to deferred stripping. This is compared to Q3 2019 cost of sales which was net of $8.3 million of deferred stripping and low-grade stockpile costs.
The Company reported net income of $33.2 million for the three-month period ended September 30, 2020 as compared to a net loss of $10.6
Revenue in Q3 2020 included a positive mark to market and final adjustment from provisional pricing on concentrate sales, as mentioned above;
Revenue in Q3 2020 was higher as a result of higher metal prices experienced in the quarter as compared to Q3 2019.
The inclusion of a non-cash unrealized foreign exchange gain of $6.9
On adjusted basis, the Company recorded a net income of $15.1 million in Q3 2020, compared to a net loss of $5.6 million in Q3 2019.
PROJECT DEVELOPMENT UPDATE
Copper Mountain Mill Expansion
In July 2020, the Company completed the first stage of the Ball Mill Expansion project which included installation of the Direct Flotation Reactors (DFRs).
As noted in Q1 2020, as a result of COVID-19, the Company deferred all major capital spend and therefore halted work on the second stage of the Ball Mill Expansion project, which deferred the actual installation of a third ball mill that the Company had already purchased and had delivered to site.or commissioning of the Ball Mill Expansion project by the end of Q3 2021.
2020 OUTLOOK
The Company is reducing its 2020 AIC guidance to a range of US$1.85 to US$2.00 per pound of copper from a range of US$2.20 to US$2.35 per pound of copper. The Company reaffirms its 2020 production guidance of 70 to 75 million pounds of copper and expects to be at the higher end of the range. Copper production is expected to be stronger in the fourth quarter of 2020 as a result of higher grades and improved recoveries.
Q3 2020 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST
Copper Mountain will host a conference call on Monday, November 2, 2020 at 7:30 am (Pacific Time) for senior management to discuss the third 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=1379598&tp_key=9549f68559
Replay Call Information
Toronto and international: 416-849-0833, Passcode: 3359433
North America (toll-free): 1-855-859-2056, Passcode: 3359433
The conference call replay will be available until 8:59 pm (Pacific Time) on November 9, 2020. An archive of the audio webcast will also be available on the company?s website at http://www.cumtn.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 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
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.ch forward-looking statements. whether as a result of new information, future events or otherwise.
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Datum: 03.11.2020 - 01:05 Uhr
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News-ID 1561936
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