Copper Mountain Mining Announces Q4 2020 Financial Results, Achieves All-in Cost Guidance and Exceeds Production 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 fourth quarter and full year 2020 financial and operating results.& Analysis (?MD&A?) are available at www.CuMtn.com and www.sedar.com.
HIGHLIGHTS
Record quarterly production in Q4 2020 of 29.1 million pounds of copper equivalent (comprised of 23.1 million pounds of copper, 8,959 ounces of gold, and 144,934 ounces of silver).
Full year 2020 production was 77.6 million pounds of copper, exceeding guidance of 70 to 75 million pounds.
C1 cash cost in Q4 2020 was US$1.43/lb copper produced, all-in sustaining cost (AISC) was US$1.58/lb copper and all-in cost (AIC) was US$1.82/lb copper.
Full year 2020 C1 cash cost was $1.53/lb copper, AISC was US$1.69/copper, and AIC was US$1.90 per pound, meeting the mid-point of improved and revised AIC guidance of US$1.80 to US$2.00/lb.
Revenue for Q4 2020 was $106.1 million and for the full year was $341.7 million.
Earnings per share for Q4 2020 was $0.10 and for the full year was $0.18.
Cash flow from operations for Q4 2020 was $50.9 million and for the full year was $121.6 million.
Cash and cash equivalents at the end of 2020 was $85.6 million, an increase of $32.0 million from the end of the third quarter of 2020 and a $53.4 million increase from December 31, 2019.
In Q4 2020, restarted the Ball Mill 3 Expansion Project to 45,000 tonnes per day, which is expected to be completed in Q3 2021.
In Q4 2020, a new life of mine plan was announced for the Copper Mountain Mine that includes a further mill expansion to 65,000 tonnes per day, demonstrating increased annual production, lower costs and a significantly higher net present value, when compared to the previous 2019 Technical Report.
?We continued to post another strong quarter with record quarterly production for copper, gold and silver.? commented Gil Clausen, Copper Mountain?s President and CEO. ?We finished the year exceeding our annual production guidance and meeting our reduced AIC guidance.er grades, as already experienced in the fourth quarter of 2020, and increased throughput and recovery following the commissioning of the 45,000 tonnes per day mill expansion planned for completion in the third quarter of 2021. We remain focused on advancing our organic growth pipeline, which includes the further mill expansion to 65,000 tonnes per day at the Copper Mountain Mine and the Eva Copper Project, while maximizing cash flow to continue to build on our healthy cash position.?
In Q4 2020, the Copper Mountain Mine produced a record 23.1 million pounds of copper, 8,959 ounces of gold, and 144,934 ounces of silver.
The mill processed a total of 3.4 million tonnes of ore in Q4 2020 as compared to 3.7 million tonnes in Q4 2019. compared to 93.1% in Q4 2019.
C1 cash cost per pound of copper produced, net of by-product credits, for Q4 2020 decreased 31% to US$1.43 when compared to Q4 2019.
All-in sustaining cost per pound of copper produced (AISC) was US$1.58 in Q4 2020, 30% lower than Q4 2019.
All-in cost per pound of copper produced (AIC) for Q4 2020 improved by 21% to US$1.82 compared to Q4 2019.
The significant decrease in C1, AISC, and AIC recognized in Q4 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 Q4 2020.
Full year 2020
For the full year of 2020, Copper Mountain Mine produced 77.6 million pounds of copper, exceeding 2020 production guidance.
During the year, the mine processed a total of 14.2 million tonnes of ore at an average feed grade of 0.32% Cu and with a copper recovery of 78.0%.
C1 cash cost per pound of copper produced, net of by-product credits, in 2020 decreased by 20% to US$1.53 when compared to 2019.t credits contributed to lower C1 cash cost.
All-in sustaining costs per pound of copper produced (AISC) in 2020 decreased by 18% to US$1.69 as compared to 2019, driven by the lower C1 cash cost per pound.
All-in costs per pound of copper produced (AIC), for 2020 decreased 22% to US$1.90 as compared to 2019. This is a significant decrease from the prior year and demonstrates the ability for the Company to adjust its operating plan to match market conditions to decrease total-all-in costs during the year, while remaining on track with the long-term development plan.
Fourth Quarter 2020
In Q4 2020, revenue was $106.1 million, net of pricing adjustments and treatment charges, compared to $73.7 million in Q4 2019.
Cost of sales in Q4 2020 was $58.8 million as compared to $72.1 million for Q4 2019.mpany allocated $8.4 million to deferred stripping. This is compared to Q4 2019 cost of sales which was net of only $0.9 million of deferred stripping and low-grade stockpile costs.
The Company reported net income of $28.5 million in Q4 2020, or $0.10 on a per share basis, as compared to a net loss of $35.7
Significantly higher revenue as a result of higher realized copper, gold and silver prices of 25%, 26% and 42%, respectively, as compared to Q4 2019.
The inclusion of a non-cash unrealized foreign exchange gain of $13.9
Q4 2019 included a one-time non-cash write-down of $48.8 million on the carrying value of the low-grade stockpile. This write-down was the result of the increased reserves and mine life of the Copper Mountain mine which deferred the milling of the low-grade stockpile to 2038. There was no write-down in Q4 2020.
On adjusted basis, the Company recorded a net income of $5.5 million in Q4 2020, or $0.03 on a per share basis, compared to $1.3 million in Q4 2019, or $0.01 on a per share basis.
Full Year 2020
Revenue for the full year of 2020 was $341.7 million, net of pricing adjustments and treatment charges, compared to $288.5 million in 2019.ly the result of higher gold and silver prices during the period as well as a positive mark to market adjustment on concentrate sales of $25.2 million as compared to $8.5 million for 2019, a differential of approximately $16.7 million. Mark to market adjustments are higher during periods of increasing copper prices and explains the increase in mark to market from the prior year.
Cost of sales for the full year of 2020 was $237.1 million as compared to $263.4 million for 2019.
The Company reported net income of $50.3 million in 2020 compared to a net loss of $25.1
Revenue was higher as a result of higher copper, gold and silver prices of 4.0%, 28.5% and 27.4%, respectively;
Revenue included a higher positive mark to market adjustment from provisional pricing on concentrate sales of $16.7 million, compared 2019, as discussed above;
In 2019, the Company recognized a one-time non-cash write-down of $48.8 million on the carrying value of the low-grade stockpile. This write-down was the result of the increased reserves and mine life of the Copper Mountain mine which deferred the milling of the low-grade stockpile to 2038. There were no write-downs in 2020.
On adjusted basis, the Company recorded a net income of $20.6 million in 2020, or $0.11 on a per share basis, compared to $0.8 million, or $0.00 on a per share basis, in 2019.
PROJECT DEVELOPMENT UPDATE
Copper Mountain
Late in 2020, on the strength of stronger metal prices and an increasing cash balance, the Company restarted the second and final stage of the Ball Mill 3 Expansion Project.avation work for the Ball Mill 3 foundations has commenced. The Ball Mill 3 Expansion Project is on track to complete commissioning by the end of Q3 2021.
On November 30, 2020, the Company announced a new life of mine plan for the Copper Mountain Mine, which included a proposed further mill expansion to 65,000 tonnes per day.
During the fourth quarter the Company advanced a project development alternative analysis for the Eva Copper Project for Board consideration. The Company expects to provide guidance on the project development plan in the second quarter of this year.
OUTLOOK
The Company expects production to increase up to the range of 85 to 95 million pounds of copper in 2021 as a result of higher grade. Similar to 2020, the Company expects production to be stronger in the second half of 2021 as a result of higher head grades and the commissioning of the Ball Mill 3 expansion project in the third quarter of 2021, which will improve recovery and increase throughput to 45,000 tonnes per day.
The Company expects all-in cost (AIC) to remain low in 2021, estimating AIC to be between US$1.80 to US$2.00
Q4 and Year End 2020 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST
Copper Mountain will host a conference call on Tuesday, February 16, 2021 at 7:30 am (Pacific Time) for senior management to discuss fourth quarter and full year 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=1421305&tp_key=1996d72c1d
Replay Call Information
Toronto and international: 416-849-0833, Passcode: 7194614
North America (toll-free): 1-855-859-2056, Passcode: 7194614
The conference call replay will be available until 8:59 pm (Pacific Time) on February 23, 2021. 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 100 million pounds of copper equivalent, with average annual production expected to increase to approximately 140 million pounds of copper equivalent.?C6C?.
Additional information is available on the Company?s web page at 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.le law, Copper Mountain disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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Datum: 16.02.2021 - 10:40 Uhr
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News-ID 1564759
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