Copper Mountain shares up on strong Q2 results
Copper Mountain Mining (TSX: CMMC) exceeded its revised operating plan for the second quarter of 2020, the Vancouver-based miner announced on Wednesday.
Production for the three-month period reached 23.9 million pounds of copper equivalent, comprising of 18.1 million pounds of copper, 7,499 ounces of gold and 86,126 ounces of silver.
Revenues rose to C$91 million from C$65 million in the same period last year, while gross profit saw a significant jump to C$30.3 million compared to C$1.6 million in Q2 2019 as a result of reduced cash costs.
Cash flow from operations before working capital changes came to C$41.5 million, up from C$4.7 million in Q2 2019.
“We are pleased to have achieved such a strong quarter despite the global impact of the covid-19 virus and the associated lower copper price environment,” commented Gil Clausen, Copper Mountain’s president and CEO.
“With higher metal prices and lower costs, our objective is to build our cash position to allow for a rapid restart of the second stage of the mill expansion project, the installation of the third ball mill,” Clausen said.
The company completed the first stage of its 45,000 tpd mill expansion and installation of the direct flotation reactors in early July. The miner has also maintained spending on long lead time items associated with installation of the third ball mill and anticipates resuming construction in late 2020 or early 2021.
Copper Mountain has reaffirmed its 2020 production and all-in cost (AIC) guidance of 70-75 million pounds of copper and $2.20-$2.35 per pound of copper produced, respectively.
Production is expected to be more heavily weighted to the second half of the year as a result of higher grades and as the company begins to mine coarser grained ore areas that have higher recovery associated with them.
AIC for the first half of 2020 was below guidance, and although the company expects to continue to operate at lower costs in the second half, it is not adjusting guidance at this time given any uncertainty surrounding the pandemic.
Shares of Copper Mountain Mining traded 2.7% higher on the TSX at market close. The company has a market capitalization of approximately C$143.5 million.