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Press release from PR Newswire

Copper Mountain Announces First Quarter 2012 Results

Monday, May 14, 2012

Copper Mountain Announces First Quarter 2012 Results08:30 EDT Monday, May 14, 2012 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. Web Site: www.CuMtn.com TSX: CUM VANCOUVER, May 14, 2012 /PRNewswire/ - 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 credits Total 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$) 2012 2011 $ $       Revenues 71,019,733 - Gross profit 27,343,867 - Operating income (loss) 25,874,074 (2,100,552) Adjusted earnings (loss)5 23,564,272 (2,004,433) Earnings (loss) attributable to shareholders of the Company  21,234,711 2,284,925 Adjusted earnings per share6 0.24 (0.02) Earnings per share7 0.21 0.02       Cash and cash equivalents 23,982,788 107,514,547 Working capital 45,146,050 102,555,656 Equity 243,264,313 220,879,250       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 Mine The 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 $  68,245,867 Reclamation bonds 4,700,500 4,700,500 Property, plant and equipment (note 4) 518,025,340 520,051,062 Non-current inventory 10,024,394 5,540,890   621,337,284 598,538,319       Liabilities     Current liabilities 43,441,000 61,013,998 Decommissioning and restoration provision 5,165,983 5,152,382 Long-term derivative liability 10,406,211 10,610,394 Long-term debt 319,059,777 308,390,897   378,072,971 385,167,671       Equity     Share capital 157,714,363 157,596,608 Contributed surplus 7,336,240 6,602,387 Retained earnings (deficit) 10,206,833 (11,027,878) Non-controlling interest 68,006,877 60,199,531 Total equity 243,264,313 213,370,648   621,337,284 598,538,319             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   1,211,984 1,068,046   Share based compensation   257,809 1,032,506 Operating income (loss)   25,874,074 (2,100,552)         Finance income   209,079 99,123 Finance expense   (1,844,513) (3,004) Unrealized loss (gain) on interest rate swap   - 58,426 Unrealized loss (gain) on foreign exchange   5,278,465 5,679,901         Income before tax   29,517,105 3,733,894         Income tax expense   674,368 -         Net income and comprehensive income for the period   28,842,737 3,733,894         Net income and comprehensive income attributable to:         Shareholders of the Company   21,237,711 2,284,925   Non-controlling interest   7,608,026 1,448,969     28,842,737 3,733,894 Earnings per share:                                         Basic   0.21 0.02   Diluted   0.21 0.02                 Weighted average shares outstanding   98,481,155 94,175,339 Shares outstanding at end of period   98,504,377 98,001,031 The 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 of COPPER MOUNTAIN MINING CORPORATION       "Rod Shier"  Rodney A. Shier, CA. Chief Financial Officer Note:  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. SOURCE Copper Mountain Mining CorporationFor further information: <p> Galina Meleger, Corporate Communications  604-682-2992 ext.224 Email: <a href="mailto:Galina.meleger@CuMtn.com">Galina @CuMtn.com</a> or<br/> Rod Shier, Chief Financial Officer 604-682-2992 ext.222 Email: <a href="mailto:Rod@CuMtn.com">Rod@CuMtn.com</a> </p> <p> Website: <a href="http://www.CuMtn.com">www.CuMtn.com</a> </p>