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Press release from CNW Group

Copper Mountain Announces Third Quarter 2011 Results

Monday, November 14, 2011

Copper Mountain Announces Third Quarter 2011 Results16:40 EST Monday, November 14, 2011TSX: CUM This release should be read with the unaudited financial statements and management's discussion and analysis available at www.cumtn.com and filed on www.sedar.com. Our financial results are prepared in accordance with IFRS and expressed in Canadian dollars, unless otherwise noted. Sales and production volumes for the Company's 75%-owned Copper Mountain mine are presented on a 100% basis unless otherwise indicated.VANCOUVER, Nov. 14, 2011 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain")announces operating income of $9.9 million for the three months ended September 30, 2011.Highlights during the quarter:Construction of the Copper Mountain Mine was completed on June 30 and operational commissioning commenced.The first shipment of copper concentrate was delivered to Japan totalling 11,200 wet metric tonnes.Total revenues were $21.8 million. Gross profit was $10.7 million.Adjusted(1,2) earnings were $9.5 million or $0.10 per share.Net loss for the period was $17.0 million or $0.17 per share as a result of changes in foreign exchange rates that produced an unrealized loss of $24.8 million on the Company's long-term debt denominated in U.S. dollars and $7.2 million on the interest rate swap derivative required under the Company's project debt agreements.Cash costs were US$1.40 per pound of copper sold net of precious metal credits and after all off site chargesProvisional(3) pricing for the initial shipment was US$4.08 per pound of copper and cash margin was US$2.68 per pound sold for the third quarter of 2011.Jim O'Rourke, President and CEO of Copper Mountain, remarked "this third quarter of 2011 has seen the project transform from a development project and into an operating mine with copper, gold, and silver revenues.  In just 18 months since receiving our permits to build on April 1, 2010 we have reached our goal of our first shipment of copper concentrate being treated in Japan at our partners' smelter operation in Onahama.  We are all very pleased with the accomplishment of all team participants in such a short time"Mr. O'Rourke continued, "Our management team has been working very hard to ensure the ramp up of the mill to designed tonnage is achieved expiditiously.  With the exception of some grinding issues that are being addressed, we are optimistic the processing plant will will reach design capacity on a steady basis in the near future."(1) Adjusted earnings (loss) and adjusted earnings (loss) per share are non-GAAP financial measures which remove unrealized gains/losses on interest rate swaps and unrealized foreign currency gains/losses.(2)Calculated based on weighted average number of shares outstanding under the basic method.(3)Provisional prices are the LME prices at the time of shipment and are subject to change at the settlement dates.Summary Financial Results      Three months ended September30Nine months ended September 30,(CDN$, except for cash cost data in US$)2011$2010$2011$2010$     Revenues21,821,321-21,821,321-Gross profit10,668,561-10,668,561-Operating income (loss)9,975,798(1,624,867)4,970,127(2,953,826)Adjusted earnings (loss)(1)9,461,797(1,512,579) (2,709,940)Earnings (loss) attributable to shareholders of the Company(16,979,679)2,179,406(18,288,826)(416,455)Adjusted earnings per share(2)0.100.020.05-Earnings per share(1)(0.17)0.02(0.19)-     Cash and cash equivalents  58,996,726182,325,323Working capital  23,132,747173,558,967Equity  204,777,722116,288,192     Cash costs per pound of copper sold (US$)2.32-2.32-    Less: Gold and silver credits (US$)(0.92)-(0.92)-Cash costs per pound of copper sold (net of gold silver credits) (US$)1.40-  1.40-Copper Mountain MineThe Copper Mountain Mine produced 9.3 million pounds of copper during the quarter ended September 30, 2011.  Costs during the months of July and August have been deferred as the mine had not yet achieved commercial production for financial reporting purposes.  During the month of September 2011, the mine shipped its first load of concentrate containing 5.8 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $21.8 million, realizing a gross profit of $10.7 million.  The cash cost of copper sold in this first shipment was $US2.32 per pound of copper before gold and silver by-product credits and $US1.40 per pound of copper after by-product credits.  As this is the first quarter of reporting for the mine, there are no comparative numbers.  The only comparative number that the Company could use is the is the feasibility study LOM cost of $US1.30 per pound of copper after gold and silver by-product credits.  Higher costs have resulted from increased and consumable costs since the date of the Feasabilty Study.  The strengthened Canadian dollar has also been an adverse cost contributor.Summarized Balance Sheet September 30,2011 December 31,2010Assets       Current assets$    85,543,266 $   176,139,510Reclamation bonds          4,743,000        4,008,000Property, plant and equipment (note 4)   514,258,420    346,087,430       $  604,544,686 $  526,234,940    Liabilities       Current liabilities      62,410,519       40,509,294Decommissioning and restoration provision         3,828,184        3,802,222Long-term derivative liability     11,621,296        2,021,250Long-term debt     321,906,965     308,476,843         399,766,964     354,809,609Equity   Share capital      157,558,786     116,286,786Contributed surplus        6,148,762         3,800,668Retained earnings (deficit)      (16,618,580)         1,670,246    Non-controlling interest       57,688,754      49,667,631Total equity    204,777,722    171,425,331        $  604,544,686     $  526,234,940Summarized Income Statement  Three months ended September 30, Nine months ended September 30,   2011$2010$2011$2010$      Revenue        21,821,321                       -     21,821,321                        -Cost of sales       11,152,760                       -     11,152,760                        -Gross profit       10,668,561                       -10,668,561                        -      Other income and expenses      General and administration              943,267         988,1822,929,889         2,143,140 Share based compensation            (250,504)            636,685       2,768,545          810,686Operating income (loss)           9,975,798       (1,624,867)       4,970,127      (2,953,826)      Finance income          (144,606)          (144,946)         (853,912)         (341,860)Finance expense           658,607             32,658          670,387             97,974Unrealized loss (gain) on interest rate swap          7,180,346                       -      10,560,997                       -Unrealized loss (gain) on foreign exchange       24,789,611       (4,986,010)      17,370,734      (3,096,651)      Earnings (losses) before income taxes      (22,508,160)         3,473,431     (22,778,079)             386,711      Provision for income and resource tax                          -                        -                        -                        -      Net income (loss) and comprehensive income (loss) for the period      (22,508,160)        3,473,431    (22,778,079)           386,711      Net income (loss) and comprehensive income (loss) attributable to:      Shareholders of the Company     (16,979,679)          2,179,406(18,288,826)         (416,455) Non-controlling interest        (5,528,481)1,294,025(4,489,253)            803,166       (22,508,160)3,473,431(22,778,079)            386,711Earnings per share:                                      Basic                   (0.17)                   0.02                (0.19)                       - Diluted                   (0.17)                   0.02               (0.19)                        -            Weighted average shares outstanding       98,405,522       89,813,531       96,974,088       84,788,098Shares outstanding at end of period       98,411,879      89,965,002      98,411,879       89,965,002            The full set of financial statements and accompanying MD&A are posted on Sedar.com.Copper Mountain will host a conference call on Tuesday, November 15, 2011 at 10:30 a.m. Eastern Time (7:30 a.m. Pacific) to discuss these results. The conference call may be accessed by dialing :Live Dial-in informationVancouver and international:(647) 427-7450North America (toll-free):(888) 231-8191To participate in the webcast live via your computer go to: http://www.newswire.ca/en/webcast/viewEvent.cgi?eventID=3735380Replay call information Vancouver and international:416-849-0833,  passcode  26050730 North America (toll-free): 1-855-859-2056,  passcode  26050730The conference call replay will be available from 10:30 am (PST) on November 15, 2011, until 11:59 pm PST on Nov. 30, 2011Participant audio webcast will also be available on the company's website  http://www.cumtn.comAbout Copper Mountain Mining Corporation:Copper Mountain is a Canadian resource company managed by an experienced team of professionals with a solid track record of exploration and development success.  The Company's shares trade on the Toronto Stock Exchange under the symbol "CUM".  Copper Mountain owns 75% and Mitsubishi Materials Corporation owns 25% of the Copper Mountain Mine.  The 18,000 acre mine site is located 20 km south of the town of Princeton in southern British Columbia.  The Copper Mountain Mine has a current resource of approximately 5 billion pounds of copper and recently commenced production.  Additional information is available on the Company's new web page at www.CuMtn.com.On behalf of the Board ofCOPPER MOUNTAIN MINING CORPORATION"Rod Shier" Rodney A. Shier, CA.Chief Financial OfficerNote:  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.For further information: Galina Meleger, Corporate Communications  604-682-2992 ext.224 Email: Galina @CuMtn.com or Rod Shier, Chief Financial Officer 604-682-2992 ext.222 Email: Rod@CuMtn.com Website: www.CuMtn.com