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Copper Mountain Mining Announces Q1 2020 Financial Results

ID: 1557686
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(PresseBox) - Copper Mountain Mining Corporation (TSX: CMMC | ASX:C6C) (the ?Company? or ?Copper Mountain? - https://www.commodity-tv.com/play/copper-mountain-mining-q4-and-full-year-2019-numbers-published/ ) announces first quarter 2020 financial and operating results.& Analysis (?MD&A?) are available at www.CuMtn.com and www.sedar.com.

HIGHLIGHTS

Implemented revised mine plan on March 10th in reaction to the global COVID-19 pandemic with the objective of maintaining solid positive margins and cash flow.

During the quarter the Company and Mitsubishi Materials Corporation reached an agreement to extend the maturity of the funding advances received to date and shown as a related party current liability to a longer-term related party debt due June 30, 2023. This has the effect of improving the Company?s working capital by the same $135.7 million.

Cash and cash equivalents at the end of the first quarter was $36.2 million.

Cash flow from operations for the first quarter of 2020 was $16.3 million.

Loss per share of $0.17 for the first quarter of 2020 was primarily due to the inclusion of a non-cash unrealized foreign exchange loss equating to $0.14 on a per share basis related to the Company?s debt that is denominated in US dollars. On an adjusted basis, earnings per share for Q1 2020 was $0.01.

Revenue for the first quarter of 2020 was $49.6 million, from the sale of 17.9 million pounds of copper, 6,364 ounces of gold and 78,572 ounces of silver, net of pricing adjustments.

Production for the first quarter of 2020 was 21.8 million pounds of copper equivalent (comprised of 17.5 million pounds of copper, 6,139 ounces of gold and 80,016 ounces of silver).

For the first quarter of 2020 C1 cash costs per pound of copper produced was US$2.01, all in sustaining cost (AISC) per pound of copper was US$2.14.



?The most important highlight is that we have had no confirmed or presumptive cases of the COVID-19 virus at any of our operations or offices and the Copper Mountain mine is operating normally under COVID-19 protocols,? commented Gil Clausen, Copper Mountain?s President and CEO. ?Our top priority is maintaining the health and safety of our employees and local communities.?

Mr. Clausen added, ?We rapidly responded to the potential market impacts of COVID-19 in early March with our announcement of a revised mine plan in light of copper price uncertainty. With these first quarter results we remain comfortable with our production guidance of 70 to 75 million pounds of copper for 2020.wer diesel fuel costs and the benefits of the BC Hydro power cost deferral program, which allows for the deferral of a major portion of its power costs. With the reduced Canadian dollar to U.S. dollar exchange rate, we are reiterating our all-in cost guidance of US$2.20 to $2.35 per pound for the year announced on March 10th.?

As announced on March 10th, the Company implemented a revised mine plan in reaction to the global COVID-19 pandemic and the resulting lower copper price environment. The focus of the mine plan is to maintain positive margins and cash flow, which resulted in the deferral of capital related to the installation of Ball Mill #3, resequencing short term production to lower cost mining phases in order to reduce operating costs, and rescheduling the higher grade ore in pit #3 scheduled for mining in 2020 to 2021 in order to better match higher metal prices in the future. Notably, the revised mine plan and the associated cost benefits started to come into effect in March.

In Q1 2020, the Copper Mountain Mine produced 17.5 million pounds of copper, 6,139 ounces of gold, and 80,016 ounces of silver compared to 18.6 million pounds of copper, 7,127 ounces of gold, and 62,280 ounces of silver in Q1 2019.

C1 cash cost per pound of copper produced for Q1 2020 was US$2.01, as compared to US $1.77 in Q1 2019.

Total all-in costs per pound of copper produced (AIC), net of credits, for Q1 2020 was US$2.47 as compared to US$2.44 for Q1 2019. Adding together sustaining capital, lease and applicable administration expenditures, deferred stripping and low-grade stockpile mining costs the total all-in costs for Q1 2020 was $58.1 million as compared to $60.5 million in Q1 2019 and the slight decrease over the prior comparable period is a result of a higher gold price which produced $2 million more in precious metal credit during Q1 2020 as compared to Q1 2019.

In Q1 2020, revenue was $49.6 million, net of pricing adjustments and treatment charges, and is based on the sale of 17.9 million pounds of copper, 6,364 ounces of gold, and 78,572 ounces of silver and on an average realized copper price of US$2.58 per pound.1 2020, as compared to a $9.9 million positive mark to market and final adjustment for Q1 2019, a differential of approximately $29 million, in addition to a 9% lower realized copper price and 8% lower copper sales and 9% lower gold sales in the period.

Cost of sales in Q1 2020 was $64.5 million as compared to $63.6 million for Q1 2019.

The Company reported a gross loss of $14.9 million and a net loss of $43.5 million for Q1 2020, compared to $23.3

Revenue in Q1 2020 included a negative mark to market adjustment on concentrate sales compared to a positive mark to market adjustment in Q1 2019, as discussed above;

Revenue in Q1 2020 was further affected by an 8% decrease in copper sales and a 9% decrease in gold sales when compared to Q1 2019; and,

The inclusion of a non-cash unrealized foreign exchange loss of $26.9 million as compared to a non-cash unrealized foreign exchange gain of $6.1 million in Q1 2019, a differential of approximately $33 million, which was primarily related to the Company?s debt that is denominated in US dollars.

On an adjusted basis, the Company recorded net earnings of $1.4 million for Q1 2020 compared to $6.0 million in Q1 2019.

PROJECT DEVELOPMENT UPDATE

Copper Mountain Mill Expansion

The Company has continued with the first stage of the expansion in the first quarter, which includes the installation of Direct Flotation Reactors (DFRs). The installation of 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.

With the developments of COVID-19 and the associated drop in the copper price, the Company deferred all major capital spend and therefore halted work on the second stage of the Copper Mountain Ball Mill expansion plans, which consisted of installing the third ball mill, in order to preserve cash.

Eva Copper Project

During the quarter, the Company continued with work on updating the Eva Copper 2020 Bankable Feasibility Study which is planned for release shortly.

OUTLOOK

Copper production in 2020 is expected to be between 70 to 75 million pounds of copper based on the Company?s revised plan for 2020 in response to the COVID-19 pandemic.

Q1 2020 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST

Copper Mountain will host a conference call on Monday, April 27, 2020 at 7:30 am (Pacific Time) for senior management to discuss the first 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=1300630&tp_key=a184b3c730

Replay Call Information

Toronto and international: 416-849-0833, Passcode: 5958764

North America (toll-free): 1-855-859-2056, Passcode: 5958764

The conference call replay will be available until 8:59 pm (Pacific Time) on May 4, 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.the symbol ?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

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.he historical data referenced in this press release and risks set out in Copper Mountain?s public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com.



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Date: 04/27/2020 - 17:37
Language: English
News-ID 1557686
Character count: 2868
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Firma: Swiss Resource Capital AG
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Stadt: Vancouver, British Columbia
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