News Column

Copper Mountain Announces 2014 First Quarter Results

May 6, 2014



ENP Newswire - 06 May 2014

Release date- 02052014 - Vancouver, British Columbia - Copper Mountain Mining Corporation (TSX: CUM) announces sales of 19.8 million pounds of copper, 6,500 ounces of gold and 98,600 ounces of silver tp produce revenues of $61.2 million after pricing adjustments and treatment charges, which is net of a $9.8 million negative pricing adjustment for the three months ended March 31st, 2014.

First Quarter 2014 Highlights (100% Basis)

Total production for the 2014 first quarter at Copper Mountain Mine was 19.1 million pounds of copper, 5,400 ounces of gold and 105,300 ounces of silver. This represents a 34% increase in copper production from the same period last year.

Copper concentrate shipments of 39,100 wmt contained the sale of 19.8 million pounds of copper, 6,500 ounces of gold, and 98,600 ounces of silver.

Mill throughput averaged 29,300 tpd which was a 17% improvement from the same period last year.

Adjusted EBITDA1 was $17.1 million for the three months ended March 31st 2014.

Adjusted earnings were $6.7 million or $0.06 per share

Cash flows from operations was $12.4 million for the first quarter of 2014 compared to negative $5.1 million for 2013.

Site cash costs for the 2014 first quarter were US$1.62 per pound of copper produced net of precious metal credits.

Total cash costs for the period US$2.08 per pound of copper sold net of precious metal credits and after all off-site charges.

Realized prices on metal sales were $3.19 per pound of copper, $1,293 per ounce of gold and $20.49 per ounce of silver.

Jim O'Rourke, President and CEO of Copper Mountain, remarked 'This quarter marks our 6th consecutive quarter of improved production. This continued improvement is a result of the mines focus on integrating the three temporary portable crushers into the circuit to pre-crush a portion of the SAG mill feed. These temporary solutions have been successful in increasing throughput and will remain in place until the permanent secondary crusher is installed this summer.

The 2014 first quarter production results are in line with our annual production guidance of 80 -90 million pounds of copper, despite some unscheduled downtime in March. The operational highlights for this first quarter include better than expected grade, improved mill availability and steady progress in mill throughput. These combined factors contributed to record production during the quarter'.

Mr. O'Rourke continued, 'Overall, construction of the secondary crusher is progressing on budget and on schedule for a mid-summer 2014 start-up. Structural steel is being erected and foundations for the new conveyor systems are in progress.'

Copper Mountain Mine

During the period, the company completed a total of three shipments of concentrate containing approximately 19.7 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $61.2 million, realizing a gross profit of $1.1 million. The total cash cost of copper sold for the three months ended March 31, 2014 was US$2.08 per pound of copper after gold and silver by-product credits.

The Copper Mountain Mine achieved record first quarter copper production. Total production for the three months ended March 31st, 2014 at Copper Mountain Mine was 19.1 million pounds of copper, 5,400 ounces of gold and 105,300 ounces of silver. This represents a 35% growth in copper production from the same period last year.

SAG Mill throughput was improved during the quarter as a result of adding the third portable crusher late last year. Copper production during the quarter was in line with guidance, despite some unscheduled down time in March resulting from a ball mill transformer failure.

Mill crews completed repairs in a timely manner and identified the root cause of the transformer failure. A permanent solution has been identified and will be implemented across all six mill transformers over the next four months. During the quarter the mill averaged 91% availability.

A permanent secondary crusher is being installed at the site at a capital cost of $40 million. Progress is on budget and on schedule for a mid-summer start-up. This crusher will replace the three temporary high cost portable crushers and will provide 100% minus 2 inch feed to the SAG mill. Currently the mill is operating at the planned capacity of 32,000 tpd with about 35% of the mill feed being crushed to the 2 inch size range.

Mining activities continued to shift more towards Pit 3 during the quarter and mining in the Pit 2 area shifted more towards the southwest end of the Pit. During the quarter a total of 13.6 million tonnes of material was mined, including 4.1 million tonnes of ore and 9.5 million tonnes of waste. The mine moved an average of approximately 160,000 tonnes of material per day. The Komatsu haul fleet continues to have favourable mechanical availability.

About Copper Mountain Mining Corporation

Copper Mountain's flagship asset is the Copper Mountain mine located in southern British Columbia near the town of Princeton. The Company has a strategic alliance with Mitsubishi Materials Corporation who owns 25% of the mine. The Copper Mountain mine commenced production in the summer of 2011 and has continued to improve its operations since startup.

The 18,000 acre site has a large resource of copper that remains open laterally and at depth. The mine has significant exploration potential that will need to be explored over the next few years to fully appreciate the properties full development potential. Additional information is available on the Company's web site at www.CuMtn.com.

A conference call and audio webcast will be held on Friday May 2nd, 2014 at 7:30 am (Pacific Standard Time) for management to discuss the 2014 first quarter results. This discussion will be followed by a question-and-answer period with investors.

Live Dial-in information

Toronto and international: 416-764-8688

North America (toll-free): 888-390-0546

Replay call information

Toronto and international: 416-764-8677, passcode 559428

North America (toll-free): 888-390-0541, passcode 559428

The conference call replay will be available from 10:30 am (PST) on May 2nd, 2014, until Midnight PST on May 8th, 2014

Participant audio webcast will also be available on the company's website http://www.cumtn.com

Contact:

Copper Mountain Mining Corporation

Galina Meleger

Corporate Communications

Tel: 604-682-2992

Email: Galina@CuMtn.com

Rod Shier

Chief Financial Officer

Tel: 604-682-2992

Email: Rod@CuMtn.com

Website: www.CuMtn.com

This release contains forward-looking statements that involve risks and uncertainties. These statements may differ materially from actual future events or results. 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.


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Source: ENP Newswire


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