Copper Mountain Mining Reports $265.7 Million in Revenues for 2014

Copper Mountain Mining (TSX:CUM) announced its year end results for 2014. Highlights included $265.7 million in revenues after pricing adjustments and sold 80.7 million pounds of copper, 24,700 ounces of gold and 427,600 ounces of silver. The company also provided an overview of operations for the year at its Copper Mountain mine.

As quoted in the press release, highlights from Copper Mountain’s 2014 results included:

• 22,600 ounces of gold and 443,800 ounces of silver. This represents a 23% growth in copper production from 2013.
• Revenues for the 2014 year were $265.7 million from metal sales.
• Gross profit for the year was $31.8 million.
• Cash flow from operations was $47.2 million or $0.40 per share an increase of 48% over the previous year.
• Adjusted EBITDA1
• of $78.8 million, an increase of 35% over the previous year.
• Adjusted earnings per share1
• of $28.7 million or $0.24 per share
• Mine production increased, with the addition of the new mine dispatch system, exiting 2014 at a rate of 175,000 TPD mined.
• Mill capacity improved during the year, with the addition of the permanent secondary crusher, exiting 2014 at a rate of 36,200
• tpd for the last two weeks of December
• Site cash costs for the year was US$1.49 per pound of copper produced net of precious metal credits.
• Total cash costs for the year was US$1.98 per pound of copper sold net of precious metal credits and after all off- site charges.
• Realized prices on metal sales for 2014 was $3.11 per pound of copper, $1,266 per ounce of gold and $19.08 per ounce of silver.

Speaking to operations at the Copper Mountain mine, specifically, the installation of a new secondary crusher and improvements in mill throughput, the company stated:

During the year, the company completed fourteen shipments of concentrate containing approximately 80.7 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $266 million, realizing a gross profit of $32 million. The total cash cost of copper sold for the year ended December 31, 2013 was US$1.99 per pound of copper net of gold and silver by-product credits.

Mining activities continued in the Pit 2 and Pit 3 areas throughout 2014. The new mine dispatch system has proven to be a valuable tool to maximize haulage truck load factors and improve mining efficiencies. A total of 60 million tonnes of material was mined, including 18.8 million tonnes of ore and 41.3 million tonnes of waste at an average mining rate of 175,000 tpd moved during 2014. The ore grade averaged 0.40% Copper for the year. Site cash costs were $1.49 per pound of copper after gold and silver by-product credits.

Mill throughput from the concentrator was improved more than 10% during 2014 as compared to 2013. During the first quarter of 2014, SAG mill throughput was averaging about 29,280 tpd while utilizing temporary portable crushers and by year end mill throughput had increased 24% to an average of 36,200 tpd for the last two weeks of December. The improvement in mill throughput during the year was a direct result of feeding the SAG mill with finer ore. Construction of the $40 million secondary crusher was completed on time and on budget by the end of July 2014. Commissioning of the crusher commenced immediately and by the end of the third quarter a marked improvement in production was noted. Some technical and mechanical issues limited the crusher’s ability to run at 100% of designed capacity but these were resolved in the fourth quarter. At the end of the year the secondary crusher was operating at designed capacity and the finer mill feed provided the increased milling rate as planned.

Copper Mountain president and CEO, Jim O’Rourke, said:

The mine achieved record production in 2014 and ended the year with the addition of the new permanent $40 million secondary crusher which in turn increased mill throughput above 35,000 tpd design capacity. Copper production increased 22% from the prior year and was within guidance. Clearly the secondary crusher has made a significant improvement on the operational performance of the concentrator by delivering a consistent feed size of ore to the SAG mill Looking forward, we see the next twelve months as a period of continued optimization to further strengthen our operating base. Production for 2015 will come mainly from the Pit 2 area providing higher gold production. We have a strong operating team and I am confident that the mine will meet our production goals and be able to reduce costs to help offset the weaker copper price.

Click here to read the Copper Mountain Mining (TSX:CUM) press release