VANCOUVER, Jan. 13, 2020 /CNW/ - Copper Mountain
Mining Corporation (TSX:CMMC |
ASX:C6C) ("Copper Mountain" or the
"Company) announces Q4 and full year 2019 production results
for its Copper Mountain Mine, located in southern British Columbia. The Company also announces
three-year production guidance for 2020 to 2022 and cost guidance
for 2020. All results are reported on a 100% basis.
Highlights
- 2020 production expected to increase up to 33% to 86 to 96
million pounds of copper
- Production for 2019 was 72.0 million pounds of copper, meeting
2019 production guidance
- Production for Q4 2019 was 18.6 million pounds of copper, 14%
higher than Q3 2019
- C1 cash costs in 2020 expected to be in the range of
US$1.30 to US$1.45 per pound
Gil Clausen, Copper Mountain's
President and CEO, commented, "We are now well positioned to
deliver strong production, improved grades and lower cost as a
result of the significant development completed in 2019 at the
Copper Mountain Mine. The benefits of that investment were
evident in the fourth quarter of 2019, with strong production and
grade improvement as we opened up more high-grade zones in our main
pit. We expect production to increase 20 to 33% in 2020
to 86 to 96 million pounds of copper, well over 100 million pounds
on a copper equivalent basis. Further, with the concentrator
expansion on track for completion by the end of 2020, higher
production levels are expected to continue into the future.
We are continuing to focus on maximizing cash flow while prudently
investing in our low risk, low capital, high return growth projects
in 2020."
Q4 and 2019 Production Results
|
Q4
2019
|
2019
|
2019
Guidance
|
Copper equivalent
(Mlbs)*
|
22.6
|
87.2
|
86 to 95
|
Copper
(Mlbs)
|
18.6
|
72.0
|
72 to 80
|
*
|
Copper equivalent
calculated using average realized metal prices.
|
Copper production for the fourth quarter of 2019 increased 14%
from the third quarter of 2019. Production during the quarter
was 18.6 million pounds of copper, 6,200 ounces of gold and
86,623 ounces of silver for a total of 22.6 million copper
equivalent pounds. Copper grade in the fourth quarter
increased by 19% to 0.31% when compared to the third quarter of
2019 and demonstrated steady month over month improvements within
the quarter. The grade improvements are expected to continue into
2020.
In 2019, the Copper Mountain Mine produced 72.0 million
pounds of copper, 26,747 ounces of gold and 271,835 ounces of
silver for a total of 87.2 million copper equivalent pounds.
Production was impacted by lower grade ore zones encountered in the
third quarter of 2019.
Three-year Outlook
Based on the updated Mineral Reserve previously announced on
October 28, 2019, the Company focused
on optimizing the production plan with the objective of maximizing
cash flow. In 2020, the Company expects production to be 86
to 96 million pounds of copper and C1 cash costs to be in the range
of US$1.30 to US$1.45 per pound. The production plan has the
mine maintaining a solid production and cost profile into the
future.
Production
Production for the Copper Mountain mine for the next three years
is planned as follows:
Production
Guidance
|
2020
|
2021
|
2022
|
Copper equivalent
(Mlbs)*
|
100 to 113
|
102 to 115
|
88 to 100
|
Copper
(Mlbs)
|
86 to 96
|
88 to 98
|
75 to 85
|
*
|
Copper equivalent
calculated using the following metal prices: US$3.00/lb of copper,
US$1,400/oz of gold and US$16.50/oz silver
|
Copper production in 2020 is expected to increase to 86 to 96
million pounds and in 2021 to 88 to 98 million pounds due to higher
grades mined from the main pit. In 2019, the Company pushed
back the southwest wall in the main pit to uncover higher grade
zones at depth. As less development is now required in 2020 the
Company expects the waste to ore "strip" ratio to decrease
considerably to less than 2 to 1. Production is expected to be
lower in 2022 at 75 to 85 million pounds of copper with production
planned to recover back to higher levels immediately
thereafter.
The 2020 concentrator expansion project will bring plant
capacity to 45,000 tpd by the end of the year. The project is
being implemented in two stages: The first stage consists of the
cleaner circuit upgrade, which involves the installation of Direct
Flotation Reactors (DFRs) to increase the efficiency and the
capacity of the currently cleaner circuit. This is expected to
increase concentrate grade from about 24% to 28% copper in
concentrate resulting in lower concentrate transportation, smelting
and refining costs. Commissioning for the DFRs is expected
mid-2020. The second stage consists of the installation of the
third ball mill, which is already on site, and the Company plans on
commissioning the ball mill in the fourth quarter of
2020.
Gold production is expected to be 25,000 to 30,000 ounces and
silver production is expected to be 400,000 to 500,000 ounces per
year over the next three years.
Costs
Cost guidance for 2020 is provided in the table below. All
Dollars are in US Dollars and assume a USD to CAD exchange rate of
0.76 to 1.
|
2020
|
Cost
Guidance
|
|
C1 cash costs
(US$/lb)
|
$1.30 to
$1.45
|
All-in sustaining
costs (US$/lb) (1)
|
$1.40 to
$1.60
|
All-in costs
(US$/lb)(2)
|
$1.95 to
$2.20
|
|
|
Capex
|
2020
|
Growth Capital
(US$M)
|
Approx.
$33M
|
Sustaining
Capital (US$M)(1)
|
Approx.
$13M
|
Deferred
Stripping (US$M)
|
Approx.
$13M
|
1)
|
Sustaining capital
includes sustaining capital, lease payments and applicable
administration
|
2)
|
All-in costs
include sustaining capital, deferred stripping and low grade
stockpile inventory expense
|
C1 cash costs are expected to be between US$1.30 to $1.45 in 2020, primarily as a result of higher
production and improved grades. Sustaining capital is expected to
be approximately US$13 million, for
all-in sustaining costs of US$1.40 to
US$1.60 per pound. All-in costs are
expected to be between US$1.95 to
US$2.20 per pound. Deferred
stripping is expected to decrease significantly from 2019, as 2019
was a heavy development year. Deferred stripping in 2020 is
expected to be approximately US$13 million.
Total growth or expansionary capital in 2020 is expected to be
approximately US$33 million.
The majority of the capital to be spent in 2020 is planned in the
second half of the year for the concentrator expansion project at
the Copper Mountain Mine. Capitalized exploration for 2020 is
expected to be approximately US$2
million, with the focus on continued reserve expansion at
the Copper Mountain Mine.
Additional Projects
The Company is conducting a Pre-Feasibility Study (PFS) to
evaluate a further plant expansion beyond 45,000 tpd as the Copper
Mountain Mine reserves continue to expand in size. The Company
expects to complete the PFS by the end of 2020.
The completion of an updated Bankable Feasibility Study (BFS)
for the Eva Project in Australia
is planned for the first quarter of 2020. The BFS will include
further optimizations of the Eva Project as well as incorporating
additional new reserves into the mine plan, such as the Blackard
and Scanlan deposits, the former of which was announced in
October 2019.
Q4 2019 Financial and Operating Results Conference Call and
Webcast
Copper Mountain will release full Q4 2019 financial and
operating results before the market opens on Tuesday, February 18, 2020. The Company will hold
a conference call on Tuesday, February 18,
2020 at 7:30 am (Pacific Standard
Time) for management to discuss the Q4 2019 financial and
operating results.
Live Dial-in
Information
|
|
Toronto and
international:
|
1 (647)
427-7450
|
North America
(toll-free):
|
1 (888)
231-8191
|
To participate in the
webcast live via computer go to:
https://event.on24.com/wcc/r/2168869/8984BF310DEB282BBE3C738541A2A410
|
Replay Call
Information
|
Toronto and
international:
|
1 (416)
849-0833
|
Passcode:
7870549
|
North America
(toll-free):
|
1 (855)
859-2056
|
Passcode:
7870549
|
The conference call replay will be available from 10:30 pm (PST) on February
18, 2020 until 20:59 pm PST on
February 25, 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 produces
about 90 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 4,000 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.
Chief Executive Officer
Note: This release contains forward-looking statements
that involve risks and uncertainties. These statements may
differ materially from actual future events or results. Guidance is
based on a number of assumptions and estimates as of December 31, 2019, including, among other things,
assumptions about metal prices and anticipated costs and
expenditures. Guidance involves estimates of known and unknown
risks, uncertainties and other factors which may cause the actual
results to be materially different. Readers are referred to the
documents, filed by the Company on SEDAR at www.sedar.com,
specifically the most recent reports which identify important risk
factors that could cause actual results to differ from those
contained in the forward-looking statements. The Company
undertakes no obligation to review or confirm analysts'
expectations or estimates or to release publicly any revisions to
any forward-looking statement.
View original content to download
multimedia:http://www.prnewswire.com/news-releases/copper-mountain-mining-announces-2019-production-and-provides-three-year-guidance-300985448.html
SOURCE Copper Mountain Mining Corporation