|Copper Mountain announces first quarter 2013 results|
VANCOUVER, May 14, 2013 /PRNewswire/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain")announces revenues of $55.1 million after pricing adjustments and treatment charges for the three months ended March 31, 2013.
First Quarter 2013 Highlights (100% Basis)
Gross profit for the quarter was $8.1 million. Copper concentrate shipments totalled approximately 26.8 DMT during the first quarter of 2013. Concentrate contained approximately 15.0 million pounds of copper, 5,800 ounces of gold, and 69,000 ounces of silver.
Total production for the 2013 first quarter at Copper Mountain Mine (100%) was 14.2 million pounds of copper, 5,300 ounces of gold and 64,200 ounces of silver. Mining activities continued at a steady rate of 172,000 tonnes per day moved during the first quarter of 2013.
Milling activities continued to improve - Operating time in particular, improved by approximately 5% to 85.9% in the first quarter of 2013 (including 93.3% in February) as compared to the 2012 average of 82.1%.
EBITDA1 and Adjusted EBITDA2 were $7.5 million and $17.6 million respectively. Adjusted earnings were $7.8 million or $0.08 per share. Site cash costs were US$1.62 per pound of copper produced net of precious metal credits. Total costs were US$2.18 per pound of copper sold net of precious metal credits and after all off site charges. Average realized copper price for the period US $3.56 per pound.
Jim O'Rourke, President and CEO of Copper Mountain, remarked, "although concentrator operating time has challenged us longer than we anticipated following the start-up period, we are confident that the major issues causing unscheduled downtime of: SAG mill grates, ball mill motor programing, tailing line wear repairs and water level in the tailings management facility have been addressed and are behind us. The resolution to these design and supply issues provide a significant step forward towards us achieving our production goals."
Mr. O'Rourke continued, "Looking forward, management's efforts are fully focused on optimizing mine and mill operations which include finalizing the review work on the installation of secondary crushing at the mine site. The test that was completed in March, with pre-crushed ore to the SAG Mill, was extremely enlightening and demonstrated that with pre-crushing the concentrator can achieve throughput rates above the designed capacity of 35,000 tpd. Following this test with pre-crushed ore, a second test was completed with ore blasted with high energy explosives to create increased fragmentation to enhance SAG Mill capacity. This test was also successful in demonstrating increased mill throughput. In the immediate and short term, we plan to continue to utilize high energy blasting and continue with a contractor to crush up to 10,000 tpd of minus 2 inch ore to meet our tonnage goals. Long term we are focused on finalizing our plans for the installation of a secondary crusher to consistently achieve mill tonnage above our 35,000 tpd design capacity."
Adjusted earnings for the quarter were $0.08/share. If you annualize the EPS you get $0.32/share for a year. Based on the closing price of $1.76/share that comes out to a 5.5 PE. For me that's very good and the operation is getting more productive as they bring on line their milling operation. Stock is selling too cheap. This should be selling at a 10 PE but maybe expectations is that Copper prices have more to fall.