Copper Mountain Mining Announces Q2 2018 Financial Results

Second quarter 2018 highlights:

• Production at the Copper Mountain Mine was 23.1 million pounds of copper equivalent in the second quarter of 2018, which includes 20.0 million pounds of copper, 6,500 ounces of gold and 68,400 ounces of silver.
• Revenue for the second quarter of 2018 was $84.2 million, from the sale of 19.9 million pounds of copper, 6,300 ounces of gold, and 70,000 ounces of silver, net of pricing adjustments.
• Cash flow from operations for the second quarter of 2018 was $40.1 million.
• EBITDA of $22.6 million for the second quarter of 2018.
• Site cash costs for the second quarter of 2018 were US$1.40 per pound of copper produced net of precious metal credits.
• Total cash costs for the second quarter of 2018 were US$1.80 per pound of copper sold net of precious metal credits and all off-site charges.

Gil Clausen, President and CEO of Copper Mountain, remarked “2018 continues to be a solid year for Copper Mountain. We had another strong quarter with revenue up 25% and cash flow up 55% year over year.  Production was up 16% and we are on track to achieve our annual guidance. We ended the quarter with a robust cash position and our focus remains on protecting our balance sheet while advancing our organic growth.”

Mr. Clausen continued, “In the second quarter we commenced our phase 2 drilling program at New Ingerbelle, which has already returned very encouraging results.  We intend to complete an updated mineral resource at New Ingerbelle following the drilling campaign in the third quarter.  The third quarter will also have other value-enhancing catalysts including an updated reserve, resource and production plan at the Copper Mountain Mine and an update on our Eva Copper Project, located in Queensland, Australia.”

During the quarter, the Company completed a total of three shipments of copper concentrate containing approximately 19.9 million pounds of copper, 6,300 ounces of gold, and 70,000 ounces of silver which generated over $84 million in revenue net of treatment and refining charges and pricing adjustments, a 25% increase over Q2 2017.  Site cash costs were US$1.40 per pound of copper produced and total cash costs were US$1.80 per pound sold, net of precious metal credits for the three months ended June 30, 2018.

Mining activities for the second quarter of 2018 were mainly focused in the Pit #2, Saddle and the Oriole areas. During the quarter a total of 19.5 million tonnes of material was mined, including 4.0 million tonnes of ore and 15.5 million tonnes of waste for a strip ratio of 3.8:1.  During the quarter mining rates of 215,000 tonnes per day moved were achieved.

During the quarter the mill processed a total of 3.4 million tonnes of ore grading 0.34% copper to produce 20.0 million pounds of copper, which is 16% higher than the second quarter of 2017.  Gold and silver production in the second quarter was 6,500 ounces and 68,400 ounces, respectively. Mill head grade for the second quarter averaged 0.34% copper, above 2018 guidance of 0.31% copper. Copper recoveries were also above plan at 81%. Mill operating time during the quarter averaged 89% and the mill achieved an average throughput rate of 37,000 tonnes per calendar day during the quarter and 41,500 tonnes per operating day. The concentrator was down approximately five days due to the replacement of two mill transformers and a SAG mill liner change.

Exploration expenditures for the quarter were $899,335, which includes both exploration in Australia and British Columbia.  

Guidance

Production in the first half of 2018 was on track as planned.   Production in the third quarter is forecasted to be lower than the second quarter as a result of planned lower grades being mined while fourth quarter production is forecasted to be the strongest quarter in 2018. The Company’s 2018 annual production guidance remains unchanged at 80 million pounds of copper (+/- 5%).  

Q2 2018 Financial and Operating Results Conference Call and Webcast

The Company will hold a conference call on Tuesday, August 7, 2018 at 7:30 am (Pacific Standard Time) for management to discuss the Q2 2018 Financial and Operating Results. 

Live Dial-in information

Toronto and international: 647-427-7450

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

To participate in the webcast go to: https://event.on24.com/wcc/r/1791161/D0B739B616FCF077D8F8CCDB33DAE1AA

Replay call information

Toronto and international: 416-849-0833 Passcode: 3669918

North America (toll-free): 1-855-859-2056 Passcode: 3669918

The conference call replay will be available from 10:30 am (PST) on August 7th, until 20:59 pm PST on August 14^th, 2018.  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 produces about 100 million pounds of copper equivalent per year with a large resource that remains open laterally and at depth. Copper Mountain also has the permitted, development stage Eva Copper Project in Queensland, Australia and an extensive 379,000 hectare highly prospective land package in the Mount Isa area.

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.  All statements, other than statements of historical facts, are forward-looking statements.  Generally, forward-looking statements can be identified by the use of terminology such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, “believes” or variations of such words, or statements that certain actions, events or results “may”, “could”, “would”, “might”, “occur” or “be achieved”.  Forward-looking statements involve risks, uncertainties and other factors that could cause actual results, performance 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 the successful exploration of the Company’s properties in Canada and Australia, the reliability of the historical data referenced in this press relase and risks set out in Copper Mountain’s public documents, including in each management discussion and analysis, filed on SEDAR at www.sedar.com.  Although Copper Mountain 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.  Except where required by applicable 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.