VANCOUVER, Feb. 18, 2020 /CNW/ - Copper Mountain
Mining Corporation (TSX: CMMC | ASX:C6C) (the "Company" or
"Copper Mountain") announces fourth quarter and full year 2019
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
Discussion & Analysis ("MD&A") are available at
www.CuMtn.com and www.sedar.com.
HIGHLIGHTS
- Production for Q4 2019 was 22.6 million pounds of copper
equivalent (includes 18.6 million pounds of copper) and 87.2
million pounds of copper equivalent (includes 72.0 million pounds
of copper) for 2019.
- Q4 2019 C1 cash cost was US$2.06,
all-in sustaining cost (AISC) was US$2.27 and all-in cost (AIC) was US$2.31, all on a per pound of copper produced
basis. 2019 C1 cash cost was US$1.92,
AISC was US$2.06 and AIC was
US$2.44, all on a per pound of copper
produced basis.
- Q4 2019 revenue was $73.7 million
and 2019 revenue was $288.5 million,
net of pricing adjustments.
- Q4 2019 cash flow from operations was $4.4 million and $51.2
million for 2019.
- Cash and cash equivalents at the end of the fourth quarter were
$32.1 million.
- Subsequent to year end, working capital improved by
$101 million as a result of
Mitsubishi Materials Corporation agreeing to extend the maturity of
the annual rolling one year notes shown as a current liability to
long-term debt due June 15, 2023.
Mitsubishi retains the option of extending this debt at maturity to
better match available cashflow of the mine at that point in
time.
- In 2019, the Copper Mountain mine life was extended by 17 years
to 31 years and Mineral Reserves increased by 127% to 477 million
tonnes grading 0.23% Cu for 2.47 billion pounds of copper.
- Eva Copper Project Mineral Resource increased with Blackard
Mineral Resource addition. Measured and Indicated Resource
increased by 66% to 2.1 billion pounds of copper with the addition
of 77 million tonnes grading 0.49% of copper containing 836 million
pounds of copper. Inferred Resource increased 118% with the
addition of 19 million tonnes grading 0.49% of copper containing
206 million pounds of copper.
"We finished the year in a solid position with strong
production and grade improvements in the fourth quarter as a result
of the significant development completed in 2019. We expect to see
these improvements continue into 2020 and 2021 as we access
high-grade zones in our main pit. Production is expected to
increase 20 to 33% in 2020 compared to 2019. Our focus on
containing costs was successful in 2019 with our C1 cash costs
coming in at US$1.92. Further, we
expect our C1 cash costs to significantly decline in 2020 by
approximately 28% to between $1.30
and $1.45 per pound, with our all-in
costs expected to be approximately US$2.00. We have set a good foundation in 2019
for a high growth year in 2020, where we plan on delivering higher
grade, higher production and lower costs."
SUMMARY OF FINANCIAL RESULTS
Results and
Highlights (100%)
|
Three months
ended
December 31,
|
Year ended
December 31,
|
(In thousands of
CDN$, except for per share amounts)
|
2019
$
|
2018
$
|
2019
$
|
2018
$
|
Revenue
|
73,743
|
73,149
|
288,460
|
296,019
|
Gross
profit
|
1,613
|
7,896
|
25,098
|
25,306
|
Gross profit before
depreciation(1)
|
11,279
|
18,089
|
52,562
|
76,352
|
Net loss
|
(35,702)
|
(18,982)
|
(25,941)
|
(26,876)
|
Loss per share –
basic
|
(0.14)
|
(0.09)
|
(0.12)
|
(0.13)
|
Adjusted earnings
(loss)(1)
|
1,317
|
(1,400)
|
835
|
3,377
|
Adjusted earnings
(loss) per share – basic
|
0.01
|
(0.01)
|
$0.00
|
0.02
|
EBITDA(1)
|
(35,271)
|
(234)
|
3,647
|
40,685
|
Adjusted
EBITDA
|
1,748
|
17,348
|
30,423
|
85,841
|
Cash flow from
operations
|
4,339
|
28,777
|
51,232
|
51,266
|
Cash and cash
equivalents – end of period
|
|
|
32,126
|
46,123
|
|
|
|
|
|
|
(1)
|
Non-GAAP
performance measure. See MD&A for details.
|
Fourth Quarter 2019
In Q4 2019, revenue was $73.7
million, net of pricing adjustments and treatment charges,
compared to $73.1 million in Q4 2018.
Q4 2019 revenue is based on the sale of 17.6 million pounds of
copper, 6,008 ounces of gold, and 76,847 ounces of silver and on an
average realized copper price of US$2.67 per pound. This compares to 19.4 million
pounds of copper, 7,475 ounces of gold and 69,761 ounces of silver
sold in Q4 2018 and an average realized copper price of
US$2.81 per pound. Revenue was
slightly higher in Q4 2019 as a result of increased gold prices in
Q4 2019 of US$1,481/oz as compared to
US$1,229/oz in Q4 2018, and a
positive mark-to-market adjustment of $6.5
million in Q4 2019 compared to a negative mark-to-market
adjustment of $2.4 million in Q4
2018. A net difference of $8.9
million from the mark-to-market adjustments.
Cost of sales in Q4 2019 was $72.1
million as compared to $65.3
million for Q4 2018. The increase in cost of sales in Q4
2019 as compared to Q4 2018 is primarily the result of mining costs
of $7.3 million being allocated to
deferred stripping and the low-grade stockpile in Q4 2018 as
compared to only $0.9 million in Q4
2019.
The Company reported a gross profit of $1.6 million and a net loss of $35.7 million for Q4 2019, compared to
$7.9 million and $19.0 million, respectively, in Q4 2018. The
variance in the net loss for Q4 2019, as compared to the net loss
for Q4 2018, was a result of several items including:
- A non-cash write down of $48.8
million on the carrying value of the low-grade stockpile at
the end of the quarter. This adjustment is a result of the Company
significantly increasing the reserves of the Copper Mountain mine
during the year, which deferred the milling of the low-grade
stockpile to 2038 on the increased mine life which impacted the
discounted cash flow value.
- Revenue in Q4 2019 included a positive mark-to-market
adjustment on concentrate sales as compared to a negative
mark-to-market adjustment for Q4 2018; and,
- The inclusion of a non-cash unrealized foreign exchange gain of
$5.4 million as compared to a
non-cash unrealized foreign exchange loss of $14.7 million in Q4 2018, a differential of
approximately $20 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
$1.3 million for Q4 2019 compared to
a net loss of $1.4 million.
Full Year 2019
Full year 2019 revenue was $288
million, net of pricing adjustments and treatment charges,
compared to $296 million in 2018. In
2019, the mine shipped and sold 72 million pounds of copper,
26,478 ounces of gold, and 254,541 ounces of silver on an average
realized copper price of US$2.73 per
pound, compared to 79 million pounds of copper, 26,799 ounces
of gold and 284,086 ounces of silver in 2018 on an average realized
copper price of US$2.98 per pound in
2018. Revenue was lower in 2019 as fewer pounds of copper were sold
and at a lower realized price, as compared 2018.
Cost of sales for 2019 was $263
million as compared to $270
million for 2018. The decrease in cost of sales is a result
of the deferral of stripping costs of $33
million for the 2019 year as compared to $20 million for 2018.
Gross profit for the year was $25.1 million as compared to $25.3 million in 2018. The Company reported
a net loss of $25.9 million for
the full year of 2019 as compared to a net loss of $26.9 million for year ended December 31, 2018. The loss for 2019 is
attributable to a non-cash $48.8
million write-down of the low-grade stockpile, as previously
mentioned. The discounting of future cash flows required to value
the low-grade stockpile has resulted in the one-time non-cash
write-down adjustment to the carrying value of the low-grade
stockpile at the end of the year.
The loss for 2019 was offset by the inclusion of a non-cash
unrealized foreign exchange gain of $14.2 million as compared to a non-cash
unrealized foreign exchange loss of $23.8 million for 2018, a differential of
approximately $38.0 million,
which was primarily related to the Company's debt that is
denominated in US dollars. On an adjusted basis, the Company
reported net earnings of $0.8 million
in 2019 compared to $3.4 million in
2018.
SUMMARY OF OPERATING RESULTS
Mine Production
Information
|
|
|
|
|
Copper Mountain
Mine (100% Basis)
|
2019
Q4
|
2018
Q4
|
2019
Annual
|
2018
Annual
|
Mine
|
|
|
|
|
Total tonnes mined
(000s)
|
14,571
|
19,730
|
62,129
|
74,337
|
Ore tonnes mined
(000s)
|
3,914
|
4,407
|
12,496
|
20,567
|
Waste tonnes
(000s)
|
10,657
|
15,323
|
49,633
|
53,770
|
Stripping
ratio
|
2.72
|
3.48
|
3.97
|
2.61
|
|
|
|
|
|
Mill
|
|
|
|
|
Tonnes milled
(000s)
|
3,733
|
3,873
|
14,643
|
14,535
|
Feed Grade
(Cu%)
|
0.31
|
0.30
|
0.29
|
0.31
|
Recovery
(%)
|
73.0
|
81.0
|
77.8
|
79.8
|
Operating time
(%)
|
93.1
|
96.0
|
93.2
|
92.6
|
Tonnes milled
(TPD)
|
40,576
|
42,098
|
40,118
|
39,822
|
|
|
|
|
|
Production
|
|
|
|
|
Copper (000s
lb)
|
18,588
|
20,628
|
71,950
|
78,847
|
Gold (oz)
|
6,200
|
8,124
|
26,747
|
28,250
|
Silver
(oz)
|
86,623
|
62,711
|
271,835
|
273,913
|
|
|
|
|
|
Sales
|
|
|
|
|
Copper (000s
lb)
|
17,598
|
19,431
|
71,898
|
79,195
|
Gold (oz)
|
6,008
|
7,475
|
26,478
|
26,799
|
Silver
(oz)
|
76,847
|
69,761
|
254,541
|
284,086
|
|
|
|
|
|
C1 cash cost per
pound of copper produced (US$)(1)
|
2.06
|
1.60
|
1.92
|
1.77
|
AISC per pound of
copper produced (US$)(1)
|
2.27
|
1.73
|
2.06
|
1.94
|
AIC per pound of
copper produced (US$)(1)
|
2.31
|
2.00
|
2.44
|
2.33
|
|
|
|
|
|
Average realized
copper price (US$/lb)
|
2.67
|
2.81
|
2.73
|
2.98
|
|
|
(1)
|
Non-GAAP
performance measure. See MD&A for details.
|
Q4 2019
In Q4 2019, the Copper Mountain Mine produced 18.6 million
pounds of copper, 6,200 ounces of gold, and 86,623 ounces of silver
compared to 20.6 million pounds of copper, 8,124 ounces of
gold, and 62,711 ounces of silver in Q4 2018. During the quarter,
the mine processed a total of 3.7 million tonnes of ore at an
average feed grade of 0.31% Cu and achieved an average copper
recovery of 73.0%. Production was lower in Q4 2019 as compared to
Q4 2018 as a result of processing a greater percentage of ore
during the 2019 quarter from lower recovery ore domain areas that
are made up of finer grained ore that results in lower recovery. In
addition, during the quarter approximately 0.3 million tonnes of
ore that was fed to the mill came from the ore stockpile and was
included in the average feed grade for the quarter. Mill
availability averaged 93.1% for Q4 2019 as compared to 96% in Q4
2018. Q4 2019 production increased 14% from Q3 2019 as a result of
improved grades, which increased 19% quarter-over-quarter. Grade
improvements are expected to continue into 2020.
C1 cash cost per pound of copper produced of US$2.06 in Q4 2019 increased compared to
US$1.60 primarily as a result of C1
cash cost in Q4 2018 being positively impacted by $7.3 million in costs or US$0.27 per pound that was capitalized as they
were associated with stripping costs deferred and costs allocated
to the low-grade stockpile. C1 cash costs for Q4 2019 had no such
deferred stripping during the quarter and only had $0.9 million or US$0.04 per pound of costs allocated to the
low-grade stockpile. In addition, lower copper production in Q4
2019 compared to Q4 2018 also contributed to the increase in C1
cash cost per pound. Q4 2019 all-in costs per pound of copper
produced (AIC) increased from US$2.00
in Q4 2018 to US$2.31 in Q4 2019
largely as a result of producing two million fewer pounds of
copper.
Total all-in costs for Q4 2019 was $56.5
million as compared to $54.4
million in Q4 2018. The slight increase is a result of
sustaining capital increasing by $1.5
million in Q4 2018. The consistency in all-in costs over the
past quarters demonstrates the consistency of the operation at the
Copper Mountain Mine quarter-after-quarter, with cost variances on
a unit of copper basis primarily impacted by copper grade and
recovery fluctuations.
Full Year 2019
The Copper Mountain Mine produced 72.0 million pounds of copper,
26,747 ounces of gold, and 271,835 ounces of silver in 2019
compared to 78.8 million pounds of copper, 28,250 ounces of gold,
and 273,913 ounces of silver in 2018. During the year, the mine
processed a total of 14.6 million tonnes of ore at an average feed
grade of 0.29% Cu and with a copper recovery of 77.8%. Production
was lower in 2019 compared to 2018 as a result of processing lower
average feed grade and a greater percentage of ore from lower
recovery ore domains that are made up of finer grained ore. Mill
availability averaged 93.2% in 2019 compared to 92.6% in 2018.
C1 cash cost per pound of copper produced 2019 was US$1.92, as compared to US $1.77 in 2018. The increase in C1 cash cost per
pound was primarily the result of lower copper production in the
year when compared to 2018. AIC per pound of copper 2019 was
US$2.44 as compared to US$2.33 for 2018.
Total all-in costs to operate the Copper Mountain mine 2019 was
$232.6 million, which is $5.3 million, or 2.2%, lower than the
$237.9 million for 2018. The decrease
in total all-in costs reflect the Company's cost containment
efforts and further illustrates the mines consistency and
reliability year after year.
PROJECT DEVELOPMENT UPDATE
Copper Mountain Mill Expansion
During the quarter, the Company continued with engineering work
to advance its expansion plans of the existing Copper Mountain Mine
mill, which is planned to increase throughput to 45,000 tonnes per
day from 40,000 tonnes per day and improve copper recovery as a
result of being able to achieve a finer grind of ore. The expansion
project includes the installation of a third ball mill that the
Company has already purchased.
Project Engineering design has been completed to support
commissioning the third ball mill in Q4 2020. Engineering of the
cleaner circuit upgrade is well advanced to allow for the
commissioning of the cleaner circuit upgrade in mid-2020. During
the quarter, the third ball mill arrived at the mine site and is in
storage and available for installation when the project schedule
provides. The Company has ordered all other critical long lead
items required for the third ball mill installation and has
adjusted the schedule of the project development to match the 2020
cash flow generation of the mine in the current low copper price
environment, such that additional financing is not required to
complete the project in fiscal year 2020.
EXPLORATION UPDATE
Copper Mountain Mine
The 2019 exploration program for the Copper Mountain mine
included approximately 15,000 metres of drilling with the objective
of defining resources adjacent to and below current reserves in
high potential areas. Key areas of drilling include the westward
extension of the current pit area towards the New Ingerbelle
deposit; the eastern edge of the pit 3 area to follow up on the
strong drill results obtained in 2018; in-fill drilling of areas at
depth in the southwest pit 3 area, and drilling within and below
the North deposit, which is adjacent to the primary crusher, in
order to upgrade reserve and resource classification.
As a result of a successful drill program, the Company updated
the Mineral Reserve and Mineral Resource for the Copper Mountain
Mine. Mineral Reserves increased by 12% to 477 million tonnes
grading 0.23% copper and 0.10 g/t gold for contained metal of 2.47
billion pounds of copper and 1.55 million ounces of gold. Measured
and Indicated Mineral Resources increased by 9% to 599 million
tonnes grading 0.23% copper and 0.10 g/t gold for contained metal
of 3.08 billion pounds of copper and 2.0 million ounces of gold.
Inferred Mineral Resources increased by 16% to 276 million tonnes
grading 0.20% copper and 0.10 g/t gold for contained metal of 1.23
billion pounds of copper and 0.88 million ounces of gold. (Please
refer to the press release dated October 28,
2019.)
Australia
The 2019 exploration drill program in Australia included both exploration drilling
and metallurgical test-work for the Blackard deposit, which is
within the Company's Eva Copper Project mining leases, five
kilometres from the proposed Eva Copper processing plant, in
Queensland, Australia. Drilling
confirmed a Measured and Indicated Mineral Resource of 77 million
tonnes grading 0.49% copper containing 836 million pounds of
copper, increasing Eva Copper's Measured and Indicated Mineral
Resource by 66% to 2.1 billion pounds. The Blackard Inferred
Mineral Resource of 19 million tonnes grading 0.49% of copper
containing 206 million pounds of copper increased Eva Copper's
Inferred Mineral Resource by 118%. (Please refer to the press
release dated October 15, 2019.)
During the quarter, the Company continued with work on updating
the Eva Copper 2020 Bankable Feasibility Study which is planned for
release in Q1 2020. This will include a new mine plan that
incorporates the new Blackard deposit as well as flowsheet
optimizations, production, and cost improvements.
OUTLOOK
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. 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.
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.
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
|
C1 cash cost is expected to improve to between US$1.30 to US$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 and 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$2
million, with the focus on continued reserve expansion at
the Copper Mountain Mine.
A summary of costs for 2020 is provided below:
|
2020
|
Cost
Guidance
|
|
C1 cash costs
(US$/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
|
Q4 2019 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND
WEBCAST
Copper Mountain 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 currently
produces approximately 100 million pounds of copper equivalent,
with average annual production expected to increase to
approximately 120 million pounds of copper equivalent. 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.
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. 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 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. 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.
Copper Mountain Mining Corporation
Consolidated
Statements of Financial Position
(In thousands of Canadian dollars)
|
|
|
|
December
31, 2019 $
|
December
31, 2018 $
|
|
|
|
Assets
|
|
|
|
|
|
Current
assets
|
|
|
Cash and cash
equivalents
|
32,126
|
46,123
|
Accounts receivable
and prepaid expenses (note 5)
|
27,947
|
18,923
|
Inventory (note
6)
|
35,299
|
55,801
|
|
|
|
|
95,372
|
120,847
|
|
|
|
Reclamation bonds
(note 10)
|
3,740
|
8,752
|
Deferred tax
assets (note 18)
|
28,088
|
13,980
|
Property, plant
and equipment (note 7)
|
501,663
|
448,237
|
Low grade
stockpile (note 6)
|
64,978
|
109,846
|
|
|
|
|
693,841
|
701,662
|
Liabilities
|
|
|
|
|
|
Current
liabilities
|
|
|
Accounts payable and
accrued liabilities (note 8)
|
41,366
|
37,494
|
Amounts payable to
related parties (notes 16 and 23)
|
104,698
|
69,026
|
Current portion of
long-term debt (note 9)
|
60,260
|
52,956
|
Current tax
liability
|
1,186
|
622
|
|
207,510
|
160,098
|
|
|
|
Provisions (note
10)
|
18,104
|
6,571
|
Interest rate swap
liability (note 9)
|
-
|
601
|
Long-term debt
(note 9)
|
188,123
|
229,001
|
Deferred tax
liability
|
2,203
|
2,135
|
|
415,940
|
398,406
|
|
|
|
Equity
Attributable to
shareholders of the Company:
|
|
|
|
|
|
Share capital
(note 11)
|
266,663
|
263,822
|
Contributed
surplus
|
18,623
|
17,378
|
Accumulated other
comprehensive loss
|
(4,158)
|
(1,655)
|
Accumulated
deficit
|
(70,516)
|
(48,030)
|
|
210,612
|
231,515
|
Non-controlling
interest
|
67,289
|
71,741
|
Total
equity
|
277,901
|
303,256
|
|
|
|
|
693,841
|
701,662
|
Copper Mountain Mining Corporation
Consolidated
Statements of (Loss) Income and Comprehensive (Loss) Income
For the Years Ended December 31, 2019
and 2018
(In thousands of Canadian dollars, except for number of and
earnings per share)
|
2019
$
|
2018
$
|
|
|
|
Revenue (note
13)
|
288,460
|
296,019
|
Cost of sales
(note 14)
|
(263,362)
|
(270,713)
|
Gross
profit
|
25,098
|
25,306
|
|
|
|
General and
administration (note 14)
|
(11,544)
|
(10,990)
|
Low-grade stockpile
write-down (note 6)
|
(48,769)
|
-
|
Share based
compensation (note 12)
|
(2,093)
|
(1,605)
|
Income (loss) from
operations
|
(37,308)
|
12,711
|
|
|
|
Finance
income
|
1,175
|
582
|
Finance expense (note
15)
|
(16,476)
|
(15,564)
|
Unrealized gain
(loss) on interest rate swap
|
(464)
|
716
|
Foreign exchange
(loss) gain
|
14,192
|
(23,788)
|
Loss on disposal of
fixed assets
|
(237)
|
-
|
|
|
|
Loss before
tax
|
(39,118)
|
(25,343)
|
|
|
|
Current income and
resource tax expense
|
(862)
|
(1,217)
|
Deferred income and
resource tax (expense) recovery
|
14,039
|
(316)
|
|
|
|
Net
loss
|
(25,941)
|
(26,876)
|
|
|
|
Other
comprehensive loss
|
|
|
Foreign currency
translation adjustment
|
(2,503)
|
(1,655)
|
Total
comprehensive loss
|
(28,444)
|
(28,531)
|
|
|
|
Net loss income
and comprehensive loss attributable to:
|
|
|
Shareholders of the
Company
|
(22,486)
|
(22,337)
|
Non-controlling
interest
|
(3,455)
|
(4,539)
|
|
(25,941)
|
(26,876)
|
Loss per
share:
|
|
|
Basic
|
$(0.12)
|
$(0.13)
|
Diluted
|
$(0.12)
|
$(0.13)
|
|
|
|
Weighted average
shares outstanding, basic
|
189,529,180
|
172,201,295
|
Weighted average
shares outstanding, diluted
|
191,004,336
|
172,201,295
|
Shares outstanding
at end of the year
|
191,331,053
|
188,170,359
|
Copper Mountain Mining Corporation
Consolidated
Statements of Cash Flows
For the Years Ended December 31, 2019
and 2018
(In thousands of Canadian dollars)
|
2019
$
|
2018
$
|
Cash flows from
operating activities
|
|
|
Net loss for the
year
|
(25,941)
|
(26,876)
|
Adjustments
for:
|
|
|
Depreciation
|
27,527
|
51,046
|
Loss on disposal of
fixed assets
|
237
|
-
|
Low grade stockpile
write-down
|
48,769
|
|
Unrealized foreign
exchange loss (gain)
|
(16,890)
|
17,601
|
Unrealized (gain) loss
on interest rate swap
|
464
|
(716)
|
Deferred income and
resource tax expense (recovery)
|
(14,039)
|
310
|
Finance
expense
|
16,476
|
15,564
|
Share based
compensation
|
2,093
|
1,327
|
|
38,696
|
58,256
|
Net changes in working
capital items (note 17)
|
12,536
|
(6,990)
|
Net cash from
operating activities
|
51,232
|
51,266
|
|
|
|
Cash flows from
investing activities
|
|
|
Cash acquired in
acquisition of Altona
|
-
|
29,115
|
Transaction and share
issue costs for Altona transaction
|
-
|
(2,655)
|
Deferred stripping
costs
|
(32,608)
|
(20,185)
|
Development of
property, plant and equipment
|
(22,578)
|
(21,537)
|
Purchase of
reclamation bond
|
5,012
|
(396)
|
Proceeds on disposal
of fixed asset
|
2,624
|
-
|
Net cash used in
investing activities
|
(47,550)
|
(15,658)
|
|
|
|
Cash flows from
financing activities
|
|
|
Proceeds on exercise
of options and warrants
|
2,311
|
224
|
Contributions from
non-controlling interest
|
38,329
|
28,412
|
Payments made to
non-controlling interest
|
(997)
|
(3,304)
|
Secured borrowing
proceeds (note 9)
|
10,345
|
-
|
Loan principal
payments
|
(49,344)
|
(44,074)
|
Interest
paid
|
(13,687)
|
(12,122)
|
Lease
payments
|
(3,279)
|
(6,511)
|
Net cash used in
financing activities
|
(16,322)
|
(37,375)
|
|
|
|
Effect of foreign
exchange rate changes on cash and cash
equivalents
|
(1,357)
|
2,757
|
|
|
|
(Decrease) increase in
cash and cash equivalents
|
(13,997)
|
990
|
|
|
|
Cash and cash
equivalents - Beginning of year
|
46,123
|
45,133
|
|
|
|
Cash and cash
equivalents - End of year
|
32,126
|
46,123
|
|
|
Supplementary cash
flow disclosures (note 17)
|
|
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SOURCE Copper Mountain Mining Corporation