VANCOUVER (miningweekly.com) – Midtier copper and gold producer Copper Mountain Mining has recorded a second-quarter loss, missing analyst earnings forecasts by C$0.02 a share, as cash margins for copper sold fell 41% during the period.The Vancouver-based company reported a loss attributable to shareholders of C$1.9-million, or $0.02 a share, for the three months ended June 30, compared with net income of C$1.6-million, or C$0.01 a share, for the comparable year-earlier quarter.
Excluding special items, Copper Mountain reported an adjusted loss of C$5.31-million, or C$0.04 a share, compared with Bay Street analyst consensus of an adjusted loss of C$0.01 a share.
The Copper Mountain mine produced 21.2-million pounds of copper during the three months ended June 30, compared with 19.5-million pounds of copper in the second quarter of 2015.
Site cash costs declined to $1.17/lb of copper produced, net of precious metal credits, and total cash costs were down 13% year-on-year at $1.58/lb sold, net of precious metal credits, better than the year-earlier site cash costs of $1.36/lb of copper produced and total cash costs of $1.81/lb of copper sold, net of precious metal credits. Site cash costs were lower on a per-pound-of-copper basis as a result of the increased copper output, the company advised.
During the period, Copper Mountain reported net revenues of C$62.6-million, which included a C$3.3-million positive pricing adjustment and C$6.5-million in treatment charges based on an average provisional copper price of $2.13/lb. This was higher than comparable revenues of C$56.8-million net of pricing adjustments and an average copper price of $2.74/lb a year earlier.
The company explained that the increase in revenue was a result of stronger sales volumes, compared against the same period last year, and a higher foreign exchange rate for the US dollar. Revenue was, however, partially offset by a lower realised copper price.
During the quarter the company sold 20.1-million pounds of copper and 7 200 oz of gold, compared with 18.4-million pounds of copper and 6 300 oz of gold for the comparable quarter a year earlier.
Copper Mountain holds a 75% interest in its eponymous mine, in British Columbia, and Mitsubishi Materials Corporation owns the remaining 25%.
The Copper Mountain mine is situated 20 km south of Princeton, and 300 km east of the Port of Vancouver.
Based on current reserves, the mine has a life of 16 years from January 1, 2015.
Copper Mountain advised that the 2016 mine plan would see the majority of ore coming from Pit #2 and the Virginia Pit areas. The company expects to produce 80-million pounds of copper, with mill throughput to average 37 500 t/d, processing a head grade of 0.33% copper.
Copper spot prices have been trading sideways over the past 30 days at about $2.17/lb.