Currently viewing Global edition

Copper Mountain higher on record output

Shares in Canada’s Copper Mountain Mining achieved a new 12-month high Thursday after the company reported record copper, gold and silver production in the December quarter had pushed output above its 2020 plan.
Copper Mountain higher on record output Copper Mountain higher on record output Copper Mountain higher on record output Copper Mountain higher on record output Copper Mountain higher on record output

Copper Mountain Mining shares up on Q4 production

While 2020 output was expected to come in near the top of Copper Mountain's guidance range due to higher mined ore grades, full-year production totalled 77.6 million pounds of copper versus the planned 70-75Mlb, with Q4 output at 23.1Mlb the 137-year-old operation's best ever quarter.

Gold and silver production were also strong during the period at 9,000oz and 145,000oz, respectively.

For 2021, Copper Moutain is targeting a 22% increase in copper output to 85-95Mlb, at all-in sustaining costs of US$1.80-$2.00/lb. Gold output should increase to between 25,000-35,000oz, and silver production is expected to rise to 500,000-550,000oz.

CEO Gil Clausen said the company was building its cash reserves to complete several low-risk, high-return growth initiatives at site, including completing a mill expansion to 45,000 tonnes per day by the end of the third quarter, before the focus would turn to an even more extensive expansion to 65,000t/d.

The company has earmarked US$33 million for expansion activities in 2021, with the bulk of the money set aside for a third ball mill as part of the ongoing 45,000t/d expansion.

Capitalised exploration for 2021 is forecast to total US$3-$4 million, and sustaining capital will total $9 million.

The exploration effort remains focused on near-mine resource expansion.

Copper Mountain last year reported higher-than-reserve-grade drill results and mineralisation extending below the conceptual pit design.

The company is working towards publishing a resource update for the operation later this quarter.

Shares in the company (TSX:CMMC) advanced 11% to a new 12-month high at C$2.42, capitalising the company at about $500 million (US$394 million).