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Copper Mountain Q3 earnings below expectations, costs fall

30th October 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – British Columbia-focused miner Copper Mountain Mining on Wednesday reported significantly improved earnings in the third quarter ended September 30, on the back of record output from its eponymous flagship asset.

Copper Mountain said earnings attributable to shareholders rose 60% year-on-year to C$11.22-million, or C$0.11 a share, compared with C$7.02-million, or C$0.07 a share, a year earlier. Adjusted earnings rose to C$447 137, or nil per share, compared with a loss of C$2.97-million, or C$0.03 a share. On average, analysts had expected adjusted earnings of C$0.04 a share, on revenues of C$61.10-million.

Revenues rose 42% year-on-year to C$67.61-million.

Copper output totalled 17.7-million pounds, up 13% on the 15.7-million pounds in the second quarter, while gold output rose almost 15% to 6 417 oz and silver output climbed 12% to 79 290 oz.

The company sold 38% more copper in concentrate at 16.63-million pounds in the quarter, compared with 12.08-million pounds a year earlier.

The total cash costs per pound of copper sold were 21.5% less at $2.22/lb.

Copper Mountain made no comment on its recently revised 2013 production guidance. However, based on year-to-date copper production of 47.6-million pounds, representing 73% of the guidance, the company’s official target of 65-million to 70-million pounds seems achievable.

The operation exited the quarter with a mill availability rate of 94.2% in June, above the company’s internal target of 92%, suggesting that the high-intensity blasting and contractor precrushing strategy appeared to be effective.

The company did not provide an update on the financing of its planned $40-million secondary crusher.

Copper Mountain’s TSX-listed stock had gained about 6% in value at C$2.80 apiece on Wednesday at noon.

Edited by Creamer Media Reporter

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