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Press release from CNW Group

Copper Mountain Announces First Quarter 2012 Results

Monday, May 14, 2012

Copper Mountain Announces First Quarter 2012 Results08:30 EDT Monday, May 14, 2012This 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.Web Site: www.CuMtn.comTSX: CUMVANCOUVER, May 14, 2012 /CNW/ - Copper Mountain Mining Corporation (TSX: CUM) (the "Company" or "Copper Mountain")announces operating income of $25.9 million for the three months ended March 31, 2012.First Quarter 2012 Highlights A total of four copper concentrate shipments were delivered to Japan totalling 29,400 dry metric tonnes of concentrate containing 15.7 million pounds of copper, 5,781 ounces of gold, and 124,546 ounces of silver.Total revenues were $71.0 million including pricing adjustments.Gross profit was $27.3 million.Adjusted 1 earnings were $23.6 million or $0.24 per share2.Net income for the period was $28.8 million or $0.21 per share3.EBITDA for the period was $37.8 million.Site cash costs were US$1.41 per pound of copper sold net of precious metal creditsTotal costs were US$1.83 per pound of copper sold net of precious metal credits and after all off site charges.Provisional4 pricing for concentrate shipments averaged US$3.73 per pound of copper and the cash margin was US$1.90 per pound sold for the first quarter of 2012.Jim O'Rourke, President and CEO of Copper Mountain, remarked "a lot has been accomplished over the last 3 months in all areas of the mine. The concentrator operating time continued to improve throughout the quarter and and reached an average of 89.3% availability in March as compared to a budgeted availability of 92%"Mr. O'Rourke continued,  "Looking to the second quarter, management's efforts are fully focused on optimizing mill throughput and incrementally increasing the daily tonnage, working towards the design capacity of 35,000 tons per day.  Improvements continued in April with concentrator operating time reaching 91.6% and the mill throughput rate averaging 34,670 tonnes per operating day resulting in production of 6.2 million pounds of copper, an increase of 28% over the prior months production.  We are very encouraged by the progress in 2012 towards reaching the mill's design capacity on a consistent basis ".Summary Financial Results    Three months ended March 31(CDN$, except for cash cost data in US$)20122011$$   Revenues71,019,733-Gross profit27,343,867-Operating income (loss)25,874,074(2,100,552)Adjusted earnings (loss)523,564,272(2,004,433)Earnings (loss) attributable to shareholders of the Company 21,234,7112,284,925Adjusted earnings per share60.24(0.02)Earnings per share70.210.02   Cash and cash equivalents23,982,788107,514,547Working capital45,146,050102,555,656Equity243,264,313220,879,250   Copper produced (lbs)13,709,034-Gold produced (oz)4,196-Silver produced (oz) 96,423-   Copper sold (lbs)15,748,009-Gold sold (oz)5,781-Silver sold(oz)124,546-Site cash costs per pound of copper produced (net of gold silver credits) (US$)$1.41-Total cash costs per pound of copper sold (net of gold silver credits) (US$)  $1.83 - Copper Mountain MineThe Copper Mountain Mine produced 13.7 million pounds of copper during the quarter ended March 31, 2012.  During the quarter, the mine completed four shipments of concentrate containing approximately 15.7 million pounds of copper to Japan for smelting and recorded revenues, net of smelter charges and pricing adjustments, of $71.0 million, realizing a gross profit of $27.3 million.  The total cash cost of copper sold for the three months ended March 31, 2012 was US$1.83 per pound of copper after gold and silver 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 2008 Feasibility Study life of mine cost of $US1.30 per pound of copper after gold and silver by-product credits.  Higher costs have resulted from increased consumable unit costs since the date of the 2008 Feasibilty Study.  The strengthened Canadian dollar has also been an adverse cost contributor._________________________________________1 Adjusted earnings (loss) and adjusted earnings (loss) per share are non-GAAP financial measures which remove unrealized gains/losses on interest rate swaps and unrealized foreign currency gains/losses.2 Calculated based on weighted average number of shares outstanding under the basic method based on adjusted earnings.3 Calculated based on weighted average number of shares outstanding under the basic method based on earnings attributable to shareholders.4 Provisional prices are the LME prices at the time of shipment and are subject to change at the settlement dates.5 Adjusted earnings (loss) and adjusted earnings (loss) per share are non-GAAP financial measures which remove unrealized gains/losses on interest rate swaps and unrealized foreign currency gains/losses.6 Calculated based on weighted average number of shares outstanding under the basic method based on adjusted earnings.7 Calculated based on weighted average number of shares outstanding under the basic method based on earnings attributable to shareholders.Summarized Balance Sheet    March 31,2012$December 31,2011$Assets  Current assets$88,587,050$  68,245,867Reclamation bonds 4,700,5004,700,500Property, plant and equipment (note 4)518,025,340520,051,062Non-current inventory10,024,3945,540,890 621,337,284598,538,319   Liabilities  Current liabilities43,441,00061,013,998Decommissioning and restoration provision 5,165,9835,152,382Long-term derivative liability10,406,21110,610,394Long-term debt 319,059,777308,390,897 378,072,971385,167,671   Equity  Share capital 157,714,363157,596,608Contributed surplus7,336,2406,602,387Retained earnings (deficit)10,206,833(11,027,878)Non-controlling interest 68,006,87760,199,531Total equity243,264,313213,370,648 621,337,284598,538,319      Summarized Income Statement     Three months ended March 31,   2012$2011$    Revenue  71,019,733-Cost of sales  43,675,866                       -Gross profit 27,343,867                       -    Other income and expenses    General and administration 1,211,9841,068,046 Share based compensation 257,8091,032,506Operating income (loss) 25,874,074(2,100,552)    Finance income 209,07999,123Finance expense (1,844,513)(3,004)Unrealized loss (gain) on interest rate swap -58,426Unrealized loss (gain) on foreign exchange 5,278,4655,679,901    Income before tax 29,517,1053,733,894    Income tax expense 674,368-    Net income and comprehensive income for the period 28,842,7373,733,894    Net income and comprehensive income attributable to:    Shareholders of the Company 21,237,7112,284,925 Non-controlling interest 7,608,0261,448,969  28,842,7373,733,894Earnings per share:                                    Basic 0.210.02 Diluted 0.210.02        Weighted average shares outstanding 98,481,15594,175,339Shares outstanding at end of period 98,504,37798,001,031The full set of financial statements and accompanying MD&A are posted on Sedar.com.About 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