VANCOUVER, BC, July 25,
2022 /PRNewswire/ - Copper Mountain Mining
Corporation (TSX: CMMC) (ASX: C6C) (the "Company" or "Copper
Mountain") announces second quarter 2022 financial and operating
results. All currency is in Canadian dollars, unless
otherwise stated. All results are reported on a 100% basis.
The Company's Financial Statements and Management's Discussion
& Analysis ("MD&A") are available at
www.CuMtn.com and www.sedar.com.
SUMMARY
- Production in Q2 2022 was 16.1 million pounds of copper
equivalent, including 13.3 million pounds of copper, 5,792 ounces
of gold, and 61,628 ounces of silver.
- Revenue for Q2 2022 was $59.1
million from the sale of 12.9 million pounds of copper,
5,069 ounces of gold, and 57,653 ounces of silver.
- C1 cash cost (1) per pound of copper produced in Q2
2022 was US$2.92.
- All-in sustaining cost ("AISC") (1) per pound of
copper produced was US$3.65 and
all-in cost ("AIC") (1) per pound of copper produced was
US$4.93.
- Net loss for Q2 2022 was $5.3
million, or ($0.02) on a
per-share basis.
- Cash flow from operations for Q2 2022 was $9.0 million, or $0.04 on a per-share basis(1).
- Cash, cash equivalents, and restricted cash at the end of
June 30, 2022 was $92.2 million.
- Installed and commissioned additional cleaner circuit capacity
to handle higher mill feed grade at higher tonnage rates.
- Received the 2022 Towards Sustainable Mining (TSM)
Environmental Excellence Award in recognition of the Company's
Electric Trolley Assist project.
(1)
|
The Company reports
the non-GAAP financial measures of C1 cash cost, AISC, and AIC per
pound of copper produced and cash flow from operations per share to
manage and evaluate its operating performance. See "Cautionary Note
Regarding Non-GAAP Performance Measures" in this press
release.
|
"There were a number of challenging issues in the second
quarter contributing to lower production and higher costs,"
commented Gil Clausen, Copper
Mountain's President and CEO. "Most of the impact to production
came from lower-grade ore and crushing circuit throughput. The
mining of the last benches of Phase 2 from a lower grade area and
the top cuts of the new North Pit, which was lower-grade and
oxidized with some high clay content zones, created a sticky feed
that impacted crushing circuit performance with clogged chutes and
crushers plugging. Further, a stripping delay in Phase 4 slowed
down the release of higher grade clean ore. Post quarter end, we
started the ore release in Phase 4, and with the first half of the
year behind us, we plan on delivering the higher production levels
forecast for the remainder of the year. ncreased production
will be largely driven by a few factors. First, as we finished
mining through the bottom of Phase 2 and worked through the top
oxidized benches of the North Pit, we will advance the clean ore in
the North Pit and Phase 4 which will allow for higher recovery and
support processing at full capacity. Second, we expect grades to
average around 0.30% Cu for the remainder of the year as we mine
mostly higher-grade ore from Phase 4, which is planned for late
July. And third, copper recovery is expected to increase further
with the completion of our plant optimization and improvement
projects. With increased grade, recovery, and throughput, we expect
strong production in the second half of 2022, with the fourth
quarter being the strongest quarter, and carry that production
through 2023 and 2024."
Mr. Clausen continued, "We are completing the engineering
work on the Life of Mine technical study that will include a new
updated mineral reserve and mineral resource estimate for the
Copper Mountain Mine. The study includes trade-off analyses and
scenario plans to evaluate throughput options for mill expansion.
We expect this study to be published in September."
SUMMARY OF OPERATING
RESULTS
Copper Mountain Mine
(100% Basis)
|
2022
Q2
|
2021
Q2
|
2022
H1
|
2021
H1
|
Mine
|
|
|
|
|
Total tonnes mined
(000s)
|
14,826
|
15,674
|
27,056
|
31,046
|
Ore tonnes mined
(000s)
|
2,523
|
3,854
|
5,411
|
7,282
|
Waste tonnes
(000s)
|
12,303
|
11,820
|
21,645
|
23,764
|
Stripping
ratio
|
4.88
|
3.07
|
4.00
|
3.26
|
|
|
|
|
|
Mill
|
|
|
|
|
Tonnes milled
(000s)
|
3,258
|
3,435
|
6,226
|
6,865
|
Feed Grade
(Cu%)
|
0.23
|
0.42
|
0.24
|
0.42
|
Recovery (%)
|
79.1
|
79.4
|
80.6
|
79.8
|
Operating time
(%)
|
89.0
|
94.1
|
87.7
|
94.0
|
Tonnes milled
(TPD)
|
35,806
|
37,747
|
34,398
|
37,928
|
|
|
|
|
|
|
|
|
|
|
Production
|
|
|
|
|
Copper (000s
lb)
|
13,251
|
25,515
|
26,475
|
51,041
|
Gold (oz)
|
5,792
|
7,627
|
10,927
|
15,814
|
Silver (oz)
|
61,628
|
147,973
|
117,622
|
308,457
|
|
|
|
|
|
Sales
|
|
|
|
|
Copper (000s
lb)
|
12,893
|
21,696
|
26,379
|
49,197
|
Gold (oz)
|
5,069
|
6,545
|
10,145
|
15,098
|
Silver (oz)
|
57,653
|
121,291
|
117,691
|
282,948
|
|
|
|
|
|
C1 cash cost per pound
of copper produced (US$)(1)
|
2.92
|
1.38
|
3.25
|
1.27
|
AISC per pound of
copper produced (US$)(1)
|
3.65
|
1.83
|
4.05
|
1.64
|
AIC per pound of copper
produced (US$)(1)
|
4.93
|
2.06
|
5.01
|
1.88
|
|
|
|
|
|
Average realized copper
price (US$/lb)
|
$4.18
|
$4.33
|
$4.36
|
$4.09
|
(1)
|
The Company reports
the non-GAAP financial measures of C1 cash costs, AISC and AIC per
pound of copper produced to manage and evaluate its operating
performance. For further information, see "Cautionary Note
Regarding Non-GAAP Performance Measures" in this press
release.
|
Production
The Copper Mountain Mine produced 13.3 million pounds of copper,
5,792 ounces of gold, and 61,628 ounces of silver in Q2 2022,
compared to 25.5 million pounds of copper, 7,627 ounces of gold,
and 147,973 ounces of silver in Q2 2021. Production was lower
during the quarter due to lower grade and reduced mill
throughput.
Mill feed grade in Q2 2022 was 0.23% Cu as compared to Q2 2021
of 0.42%. Ore was delivered to the mill from a lower grade area of
Phase 2, the development phase of the North Pit, and from the
low-grade stockpile during the quarter. All these sources
resulted in lower mill feed grade in the quarter compared to Q2
2021. Phase 2 was mined out fully in June. Phase 4 higher grade ore
release was delayed due to stripping shortfalls in the first half,
resulting in the start of Phase 4 ore being released in
mid-July.
Above average employee absences due to several reasons,
including COVID-19, limited maintenance and operations staffing
during the quarter, and impacted overall mine production.
Contracted labour alleviated this issue, but resulted in higher
labor costs. Hiring full time replacement equipment operators
was progressing well by quarter end with mine production back on
track. The commencement of mining in the North Pit was also later
than planned due to regulatory delays of a few months as additional
test work was requested on potential acid rock drainage from the
North Pit. The Company completed this test work and received full
permission to mine the North Pit early in the quarter.
Supply chain issues, including a lack of available parts for
some of the mine's production drills, severely limited drilled and
blasted inventory levels, further impacting stripping production
and delaying some Phase 4 waste removal. This situation has
steadily improved during the quarter, which allowed mine production
to be increased, advancing the Phase 4 waste stripping in the
Copper Mountain Mine Main Pit to expose higher grade ore starting
in mid-July. Ore feed grades will improve in the year's second half
to about 0.30% Cu for H2 2022, with the higher-grade Phase 4 ore
being the primary ore supply for the remainder of 2022. Phase 4
higher grade ore will also be the main ore supply for 2023, driving
increased production.
The mill processed a total of 3.3 million tonnes of ore during
the quarter as compared to 3.4 million tonnes in Q2 2021.
Mill throughput was restricted due to the availability of crushed
ore from the crushing circuit. The processing of wet, higher clay
ore from the bottom of Phase 2 and low-grade stockpile, and
oxidized higher clay ore from the top benches of the North Pit,
negatively impacted crusher circuit performance during the quarter.
The crushing circuit with its newly installed main shaft continues
to perform well when processing clean ore, consistent with
historical performance. The Company started implementing
improvements to the crushing circuit during the quarter to support
sustainable design performance on the varying ore types.
Implementation of these improvements, which began in June, is
resulting in throughput improvements and the milling circuit is
ready to process the design throughput.
Copper recovery was 79.1% in Q2 2022 as compared to 79.4% in Q2
2021. The milling of high oxide material from the initial benches
of the North Pit and some higher oxide material in the low-grade
stockpile negatively impacted recovery. The Company has now mined
through most of the North Pit higher oxide zones. It expects the
copper recovery to improve for the remainder of the year, with even
further increases scheduled with the completion of the plant
improvement and optimization projects and Phase 4 ore supply coming
online.
Mill availability averaged 89.0% for Q2 2022 as compared to
94.1% in Q2 2021. Mill availability was impacted by the feed lines
sanding and plugging to Ball Mill 3 when operating at low tonnage
rates. This was modified at the end of the quarter and Ball Mill 3
can now support stable production at all tonnages rates.
The Company continues to advance its plant improvement and
optimization projects at the mine. The installation of an
additional large column flotation cell to increase cleaner circuit
capacity was completed and fully commissioned during the quarter.
This large new flotation cell provides additional cleaner circuit
capacity to handle higher mill feed grades at higher tonnage rates.
The new filter press has also been installed and is in the final
stages of commissioning. This second filter press will allow for
maintaining design mill tonnage rates during extended periods of
higher grades, eliminating the requirement to reduce mill tonnage
as was experienced in 2021. The new filters will fully
support the planned increased production levels in the second half
of 2022 and 2023 at any grade. The expansion to the rougher
flotation circuit is about 40% complete and is now planned to be
completed in Q4 2022, which will support high recovery, especially
on slower kinetic ore types. Supply chain issues delayed the
delivery of certain parts of the rougher expansion, pushing the
completion date by a few months.
Costs
C1 cash cost, AISC and AIC per pound of copper produced are
non-GAAP financial measures. See "Cautionary Note Regarding
Non-GAAP Performance Measures" in this press release.
C1 cash cost per pound of copper produced, net of precious metal
credits, for Q2 2022 was US$2.92, as
compared to US$1.38 in Q2 2021.
The variance in C1 cash costs for Q2 2022, as compared to Q2 2021,
was due to several items, including:
- Lower copper production due to lower mill feed grade and
reduced mill throughput; and,
- Inflationary pressures increased the cost of fuel, grinding
media, and mobile equipment repairs,
With production levels expected to increase throughout the
remainder of the year and an easing of the temporary operating
costs from H1 2022, the Company anticipates C1 cash cost per pound
of copper produced to markedly improve for the remainder of
2022.
AISC per pound of copper produced for Q2 2022 was US$3.65, compared to US$1.83 in Q2 2021. AISC carries forward from C1
cash costs with the addition of $12.3
million in sustaining capital, lease, and applicable
administration expenditures in Q2 2022 compared to $14.1 million in Q2 2021. The increase in AISC is
carried forward from higher C1 cash costs and higher sustaining
capital of $8.9 million in Q2 2022
compared to sustaining capital of $7.0
million in Q2 2021.
Sustaining capital costs for Q2 2022 were higher than Q2 2021
mainly due to $2.9 million of
expenditures for the new road overpass that will eliminate traffic
interference with haulage trucks on the main waste haul road,
thereby improving productivity by reducing haul truck cycle times
and delays. Capital expenditures for these haul truck productivity
improvements were completed in Q2 2022. Sustaining capital
also includes costs associated with the mine's environmental water
management projects. The mine water management projects have
been substantially advanced and are expected to be fully completed
in Q3 2022.
AIC per pound of copper produced for Q2 2022 was US$4.93, as compared to US$2.06 in Q2 2021. AIC carries forward from AISC
with the addition of $21.7 million in
deferred stripping as compared to $7.1
million in deferred stripping in Q2 2021. Deferred stripping
costs in Q2 2022 were from regular development activities as the
Company continued to advance the development of the higher grade
Phase 4 pushback of the Main Pit.
SUMMARY OF FINANCIAL
RESULTS
Results and Highlights
(100%)
|
Three months
ended
June 30,
|
Six months ended
June 30,
|
(In thousands of CDN$,
except for per share amounts)
|
2022
$
|
2021
$
|
2022
$
|
2021
$
|
Financial
|
|
|
|
|
Revenue
|
59,074
|
142,064
|
152,932
|
304,271
|
Gross profit
(loss)
|
(9,187)
|
85,786
|
9,389
|
182,066
|
Gross profit (loss)
before depreciation(1)
|
(2,552)
|
92,085
|
21,499
|
196,051
|
Net income
(loss)
|
(5,272)
|
38,662
|
(9,434)
|
90,780
|
Income (loss) per
share – basic
|
(0.02)
|
0.12
|
(0.05)
|
0.30
|
Adjusted earnings
(loss)(1)
|
3,664
|
32,161
|
(5,613)
|
65,580
|
Adjusted earnings
(loss) per share – basic (1)
|
0.02
|
0.15
|
(0.03)
|
0.31
|
EBITDA(1)
|
7,201
|
80,958
|
18,457
|
176,943
|
Adjusted
EBITDA(1)
|
16,137
|
74,457
|
22,278
|
151,743
|
Cash flow from
operations
|
9,003
|
94,574
|
42,318
|
174,167
|
Cash flow from
operations per share – basic (1)
|
0.04
|
0.45
|
0.20
|
0.83
|
Cash, cash equivalents
and restricted cash – end of period
|
|
|
92,234
|
191,190
|
(1)
|
The Company reports
the non-GAAP financial measures of gross profit before
depreciation, adjusted earnings, adjusted earnings per share,
EBITDA and adjusted EBITDA to manage and evaluate its operating
performance. For further information, see "Cautionary Note
Regarding Non-GAAP Performance Measures".
|
In Q2 2022, revenue was $59.1
million, net of pricing adjustments and treatment charges,
compared to $142.1 million in Q2
2021. Revenue in Q2 2022 is based on the sale of 12.9 million
pounds of copper, 5,069 ounces of gold, and 57,653 ounces of
silver. This compares to 21.7 million pounds of copper, 6,545
ounces of gold, and 121,291 ounces of silver sold in Q2 2021. The
decrease in revenue was due to lower quantities of all metals sold
and at a lower average price.
Cost of sales in Q2 2022 was $68.3
million as compared to $56.3
million for Q2 2021. The increase in cost of sales can
largely be attributed to the increase in higher fuel and steel
costs, and increased maintenance contractor support required to
assist with managing COVID-19 absences, and other related workforce
absences.
The Company generated a gross loss of $9.2 million in Q2 2022 as compared to a gross
profit of $85.8 million for Q2 2021.
The Company reported a net loss of $5.3
million for Q2 2022 as compared to a net income of
$38.7 million for Q2 2021. The
variance in net income for Q2 2022, as compared to Q2 2021, was due
to several items, including:
- Lower revenue in Q2 2022 due to fewer pounds of copper sold as
compared to Q2 2021.
- Q2 2022 included a $15.9 million
negative mark to market and final adjustment from provisional
pricing on concentrate sales, as compared to an $8.8 million positive mark to market and final
adjustment from provisional pricing on concentrate sales for Q2
2021.
- Higher cost of sales in Q2 2022 due to increased operating
costs as compared to Q2 2021.
On an adjusted basis, the Company recorded net earnings of
$3.7 million in Q2 2022, or
$0.02 per share, compared to net
earnings of $32.2 million in Q2 2021,
or $0.15 per share.
PROJECT DEVELOPMENT
UPDATE
Copper Mountain Mine, Canada
The Company's mill optimization and improvement projects at the
mine site continue to progress. The cleaner column expansion
project was completed and commissioned during the quarter and the
filter press expansion was completed and is in commissioning.
The rougher expansion project has experienced some delays due to
supply chain issues and is now expected to be completed in Q4
2022. Phase 1 of the Trolley Assist project was completed
during the first quarter and the one-kilometer trolley-assist haul
ramp and seven pantograph-equipped electric haul trucks were
successfully commissioned.
Eva Copper Project, Australia
The Company announced updated economics for the Eva Copper
Project, including capital and operating costs, at the end of
2021. The Company continues to advance project
financing and detailed engineering on the project. In addition, the
Company is evaluating strategic opportunities for the Eva Copper
Project, and has engaged Macquarie Capital to assist with this
process.
Exploration Update
Canada
The drilling program, which was initiated in March 2021 with the objective of expanding
resources and reserves at the Copper Mountain Main Pit, North Pit,
and New Ingerbelle, is complete. The program consisted of a total
of 38,000 metres of diamond drilling. Results were positive
with significant copper intersections below the current reserve
pits.
In January 2022, the Company
announced continued positive results from drilling at New
Ingerbelle, extending mineralization at depth and to the west. For
further details, please see the Company's January 20, 2022, and September 9, 2021 press releases. The Company
plans to incorporate the results of the 2021-2022 drilling program
into an updated mineral reserves and mineral resources estimate,
along with a new "Life of Mine
Plan", which is expected to be published in the third
quarter of 2022.
Australia
In late 2021, the Company completed an exploration program on
its Cameron Copper Project, located approximately 40 kilometres
south of its Eva Copper Project. The program was designed to
discover additional copper, copper-gold or gold deposits. The
program, which consisted of detailed geophysical, geochemical, and
geological surveys followed by drill testing, produced encouraging
results with multiple mineralized zones identified. A total of 60
reverse circulation holes (6,997 metres of drilling) and 7 diamond
drill holes (1,341 metres of drilling) were completed on a series
of targets at Cameron (C1, C1
South, C2, C3, C6, and C24). The drill program encountered
intercepts of high-grade mineralization, within long, low-grade
mineralized envelopes, with lateral continuity between intercepts
of up to 1 kilometre. For drill hole results please see Copper
Mountain's October 12, 2021 press
release.
The Company is currently conducting a review and evaluation of
exploration targets on the entire Cameron license block. Data from last years
program is being integrated with open file geophysical data to
produce an improved understanding of the structural and
stratigraphic setting of copper prospects at Cameron. Additional geophysical surveys are
planned for the second half of 2022 and will guide subsequent drill
testing of targets.
OUTLOOK
This section of the press release provides management's
production and cost estimates for 2022. See "Cautionary Note
Regarding Forward-Looking Statements" in this press release. AIC
per pound of copper produced is a non-GAAP financial measure. See
"Cautionary Note Regarding Non-GAAP Financial Measures" in this
press release.
As a result of H1 2022 production results, the Company now
expects annual production in the range of 65 to 75 million pounds
of copper. The Company expects production in the second half of
2022 to be considerably higher than the first half of 2022 as the
Company begins to mine from higher grade ore from Phase 4 of the
Copper Mountain Main Pit in July. The higher grade Phase 4
ore is expected throughout the remainder of 2022 and through 2023.
As a result, the Company is reiterating its 2023 production
guidance range of between 90 to 105 million pounds of
copper.
The Company is increasing its AIC per pound of copper cost
guidance for 2022 to the range of between US$2.75 and US$3.25
because of the higher-than-planned AIC in H1 2022 and inflationary
pressures noted. As production is expected to increase throughout
2022, and there were a number of non-recurring expenses in H1 2022,
the Company expects AIC to improve for the remainder of 2022.
Q2 2022 FINANCIAL AND OPERATING
RESULTS CONFERENCE CALL AND WEBCAST
Copper Mountain will host a conference call on Monday, July 25, 2022 at 7:30 am (Pacific Time) for senior management to
discuss second quarter 2022 results.
Dial-in information:
Toronto and international: 1 (416) 764
8650
North America (toll-free): 1 (888)
664 6383
Webcast:
https://produceredition.webcasts.com/starthere.jsp?ei=1557958&tp_key=b1495c40ef
Replay information:
Toronto and international: 1 (416) 764 8677,
Passcode: 796638#
North America (toll-free): 1 (888)
390 0541, Passcode: 796638#
The conference call replay will be available until 8:59 pm (Pacific Time) on August 1, 2022. 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 per
year. Copper Mountain also has the 100% owned
development-stage Eva Copper Project, which is expected to add
approximately 100 million pounds of copper annually, in
Queensland, Australia, and an
extensive 2,100 km2 highly prospective land package in
the Mount Isa area. Copper Mountain trades on the Toronto Stock
Exchange under the symbol "CMMC" and Australian Stock Exchange
under 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
Website: www.CuMtn.com
Cautionary Note Regarding
Forward-Looking Statements
This document may contain "forward looking information" within
the meaning of Canadian securities legislation and "forward-looking
statements" within the meaning of the United States Private
Securities Litigation Reform Act of 1995 (collectively,
"forward-looking statements"). These forward-looking statements are
made as of the date of this document and Copper Mountain does not
intend, and does not assume any obligation, to update these
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required under applicable
securities legislation.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
relate to future events or future performance and reflect our
expectations or beliefs regarding future events.
In certain circumstances, forward-looking statements can be
identified, but are not limited to, statements which use
terminology such as "plans", "expects", "estimates", "intends",
"anticipates", "believes", "forecasts", "guidance", scheduled",
"target" or variations of such words, or statements that certain
actions, events or results "may", "could", "would", "might",
"occur" or "be achieved" or the negative of these terms or
comparable terminology. In this document, certain forward-looking
statements are identified, including production and cost guidance,
anticipated production at the Copper Mountain Mine, expectations
regarding the impact of the COVID-19 pandemic on operations,
financial condition and prospects, anticipated metals prices and
the anticipated sensitivity of the Company's financial performance
to metals prices, the timing and results of the Company's
exploration and development programs, the timing of the Company's
plant improvement and optimization projects at the Copper Mountain
Mine, the timing of the Company's updated mineral reserves and
mineral resources estimate and new life of mine plan for the Copper
Mountain Mine, the timing of studies, announcements, and analysis,
events that may affect its operations and development projects,
anticipated cash flows from operations and related liquidity
requirements, the anticipated effect of external factors on
revenue, such as commodity prices, estimation of mineral reserves
and resources, mine life projections, reclamation costs, economic
outlook, the impact of inflation, government regulation of mining
operations, and business and acquisition strategies.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results,
performance, achievements and opportunities to differ materially
from those implied by such forward-looking statements. Factors that
could cause actual results to differ materially from these
forward-looking statements include, among others, the successful
exploration of the Company's properties in Canada and Australia, market price, continued
availability of capital and financing and general economic, market
or business conditions, extreme weather events, material and labour
shortages, the reliability of the historical data referenced in
this document and risks set out in Copper Mountain's public
documents, including in each management's discussion and analysis
and the Company's most recent annual information form, filed on
SEDAR at www.sedar.com. The potential effects of the COVID-19
pandemic on Copper Mountain's business and operations are unknown
at this time, including Copper Mountain's ability to manage
challenges and restrictions arising from COVID-19 in the
communities in which Copper Mountain operates and its ability to
continue to safely operate and to safely return the business to
normal operations. The impact of COVID-19 is dependent on a number
of factors outside of the Company's control and knowledge,
including the effectiveness of the measures taken by public health
and governmental authorities to combat the spread of the disease,
global economic uncertainties and outlook due to the disease, and
the evolving restrictions relating to mining activities and to
travel in certain jurisdictions in which Copper Mountain operates.
Although Copper Mountain has attempted to identify important
factors that could cause the Company's actual results, performance,
achievements and opportunities to differ materially from those
described in its forward-looking statements, there may be other
factors that cause the Company's results, performance, achievements
and opportunities not to be as anticipated, estimated or intended.
While the Company believes that the information and assumptions
used in preparing the forward-looking statements are reasonable,
undue reliance should not be placed on these statements, which only
apply as of the date of this news release, and no assurance can be
given that such events will occur in the disclosed time frames or
at all. Accordingly, readers should not place undue reliance on the
Company's forward-looking statements.
Cautionary Note Regarding Non-GAAP
Performance Measures
This document includes certain non-GAAP performance measures
that do not have a standardized meaning prescribed by International
Financial Reporting Standards ("IFRS"). These measures may differ
from those used and may not be comparable to such measures as
reported by other issuers. The Company believes that these measures
are commonly used by certain investors, in conjunction with
conventional IFRS measures, to enhance their understanding of the
Company's performance. These performance measures are intended to
provide additional information and should not be considered in
isolation or as a substitute for measures of performance prepared
in accordance with IFRS. These measures have been derived from the
Company's financial statements and applied on a consistent basis.
The calculation and an explanation of these measures is provided in
the Company's MD&A and such measures should be read in
conjunction with the Company's financial statements.
Copper Mountain Mining
Corporation
Condensed Consolidated Statements of Financial
Position
(In thousands of Canadian dollars)
|
June 30,
2022
$
|
December 31,
2021
$
|
|
|
|
Assets
|
|
|
|
|
|
Current assets
|
|
|
Cash and cash
equivalents
|
85,539
|
171,902
|
Restricted
cash
|
6,695
|
6,512
|
Accounts receivable and
prepaid expenses
|
8,258
|
31,624
|
Inventory
|
32,682
|
32,635
|
Other financial
assets
|
8,836
|
-
|
|
|
|
|
142,010
|
242,673
|
|
|
|
Reclamation bonds and security
deposits
|
4,878
|
5,783
|
Property, plant and equipment
|
801,821
|
710,583
|
Low grade
stockpile
|
64,233
|
64,879
|
|
|
|
|
1,012,942
|
1,023,918
|
Liabilities
|
|
|
|
|
|
Current liabilities
|
|
|
Accounts payable and
accrued liabilities
|
64,059
|
60,482
|
Current portion of
lease liabilities
|
12,600
|
10,403
|
Current portion of
long-term debt
|
12,886
|
12,678
|
Taxes
payable
|
-
|
2,143
|
|
89,545
|
85,706
|
|
|
|
Provisions and other
liabilities
|
20,531
|
23,961
|
Lease liabilities
|
47,143
|
50,669
|
Long-term debt
|
284,799
|
284,829
|
Deferred tax liability
|
99,579
|
99,314
|
|
541,597
|
544,479
|
|
|
|
Equity
Attributable to shareholders of the
Company:
|
|
|
|
|
|
Share capital
|
292,836
|
287,724
|
Contributed surplus
|
17,310
|
18,973
|
Accumulated other comprehensive
loss
|
(6,038)
|
(3,929)
|
Retained earnings
|
59,190
|
68,940
|
|
363,298
|
371,708
|
Non-controlling interest
|
108,047
|
107,731
|
Total equity
|
471,345
|
479,439
|
|
|
|
|
1,012,942
|
1,023,918
|
Copper Mountain Mining
Corporation
Condensed Consolidated Statements of Income and Comprehensive
Income
(In thousands of Canadian dollars, except for
number of and earnings per share)
|
Three months ended
June
30,
|
Six months
ended
June 30,
|
|
2022
$
|
2021
$
|
2022
$
|
2021
$
|
|
|
|
|
|
Revenue
|
59,074
|
142,064
|
152,932
|
304,271
|
Cost of
sales
|
(68,261)
|
(56,278)
|
(143,543)
|
(122,205)
|
Gross profit
(loss)
|
(9,187)
|
85,786
|
9,389
|
182,066
|
|
|
|
|
|
|
|
|
|
|
Other income and
expenses
|
|
|
|
|
General and
administration
|
(4,882)
|
(4,263)
|
(11,774)
|
(9,531)
|
Share based
compensation
|
7,600
|
(4,532)
|
3,641
|
(10,491)
|
Operating income
(loss)
|
(6,469)
|
76,991
|
1,256
|
162,044
|
|
|
|
|
|
|
|
|
|
|
Finance
income
|
14
|
31
|
298
|
49
|
Finance
expense
|
(7,198)
|
(10,469)
|
(15,396)
|
(13,400)
|
Gain (loss) on
derivatives
|
13,951
|
(1,915)
|
8,836
|
(1,915)
|
Foreign exchange (loss)
gain
|
(6,916)
|
(417)
|
(3,745)
|
2,829
|
|
|
|
|
|
Income (loss) before
tax
|
(6,618)
|
64,221
|
(8,751)
|
149,607
|
|
|
|
|
|
|
|
|
|
|
Current tax recovery
(expense)
|
203
|
(1,733)
|
(418)
|
(3,590)
|
Deferred income
recovery (expense)
|
1,143
|
(23,826)
|
(265)
|
(55,237)
|
Net income
(loss)
|
(5,272)
|
38,662
|
(9,434)
|
90,780
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
(loss)
|
|
|
|
|
Foreign currency
translation adjustment
|
(2,833)
|
(1,378)
|
(2,109)
|
(2,539)
|
Total comprehensive income
(loss)
|
(8,105)
|
37,284
|
(11,543)
|
88,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) attributable
to:
|
|
|
|
|
Shareholders of the
Company
|
(3,448)
|
26,167
|
(9,750)
|
62,819
|
Non-controlling
interest
|
(1,824)
|
12,495
|
316
|
27,961
|
|
(5,272)
|
38,662
|
(9,434)
|
90,780
|
Earnings (loss) per share:
|
|
|
|
|
Basic
|
(0.02)
|
0.12
|
(0.05)
|
0.30
|
Diluted
|
(0.02)
|
0.12
|
(0.05)
|
0.29
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding, basic
(thousands)
|
212,913
|
209,467
|
211,852
|
209,013
|
|
|
|
|
|
Weighted average shares outstanding, diluted
(thousands)
|
212,913
|
219,642
|
211,852
|
216,016
|
|
|
|
|
|
Shares outstanding at end of the period
(thousands)
|
213,791
|
209,889
|
213,791
|
209,889
|
Copper Mountain Mining
Corporation
Condensed Consolidated Statements of Cash Flows
(In
thousands of Canadian dollars)
|
Three months ended June 30,
|
Six months ended June 30,
|
|
2022
$
|
2021
$
|
2022
$
|
2021
$
|
Cash flows from operating
activities
|
|
|
|
|
Net income (loss) for
the period
|
(5,272)
|
38,662
|
(9,434)
|
90,780
|
Adjustments
for:
|
|
|
|
|
Depreciation
|
6,691
|
6,331
|
12,337
|
14,115
|
Unrealized foreign
exchange (gain) loss
|
7,895
|
(4,502)
|
5,333
|
(6,446)
|
(Gain) Loss on
derivatives
|
(13,951)
|
1,915
|
(8,836)
|
1,915
|
Deferred income tax
(recovery) expense
|
(1,143)
|
23,810
|
265
|
55,221
|
Finance
expense
|
7,198
|
10,469
|
15,396
|
13,400
|
Share based
compensation
|
(7,600)
|
4,532
|
(3,641)
|
10,491
|
|
(6,182)
|
81,217
|
11,420
|
179,476
|
Net changes in
working capital items
|
15,185
|
13,357
|
30,898
|
(5,309)
|
Net cash from
operating activities
|
9,003
|
94,574
|
42,318
|
174,167
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
Purchase of copper
puts
|
-
|
(3,397)
|
-
|
(3,397)
|
Reclamation
bonds
|
(47)
|
3
|
906
|
(246)
|
Deferred stripping
activities
|
(21,742)
|
(7,147)
|
(32,211)
|
(15,188)
|
Purchase of property,
plant and equipment
|
(36,155)
|
(33,744)
|
(73,802)
|
(49,479)
|
Net cash used in
investing activities
|
(57,944)
|
(44,285)
|
(105,107)
|
(68,310)
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
Net proceeds from
issuance of bonds
|
-
|
287,785
|
-
|
287,785
|
Proceeds on exercise of
options
|
2,430
|
1,229
|
3,358
|
1,720
|
Increase (decrease) in
restricted cash
|
8,780
|
(45,615)
|
(184)
|
(45,615)
|
Advances from
non-controlling interest
|
-
|
-
|
-
|
20,393
|
Payments made to
non-controlling interest
|
-
|
(178,310)
|
-
|
(178,310)
|
Loan principal
paid
|
(6,311)
|
(93,868)
|
(6,311)
|
(113,988)
|
Interest
paid
|
(13,389)
|
(7,193)
|
(14,397)
|
(8,260)
|
Finance lease
payments
|
(2,641)
|
(6,470)
|
(6,513)
|
(9,175)
|
Net cash used in
financing activities
|
(11,131)
|
(42,442)
|
(24,047)
|
(45,450)
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash and
cash equivalents
|
2,110
|
(450)
|
473
|
(1,516)
|
|
|
|
|
|
Increase (decrease) in cash and cash
equivalents
|
(57,962)
|
7,397
|
(86,363)
|
58,891
|
|
|
|
|
|
Cash and cash equivalents - Beginning of
period
|
143,501
|
137,065
|
171,902
|
85,571
|
|
|
|
|
|
Cash and cash equivalents - End of
period
|
85,539
|
144,462
|
85,539
|
144,462
|
|
|
|
|
|
|
|
View original
content:https://www.prnewswire.com/news-releases/copper-mountain-mining-announces-q2-2022-financial-results-301592263.html
SOURCE Copper Mountain Mining Corporation