Despite record output, Copper Mountain earnings slip
TORONTO (miningweekly.com) – British Columbia-based Copper Mountain on Friday reported lower first-quarter earnings despite record output from its eponymous flagship mine.
The TSX-listed miner reported adjusted earnings of C$6.7-million, or C$0.07 a share, 14% lower than the C$7.8-million reported in the same period a year earlier.
Analysts had on average expected adjusted earnings of C$0.04 a share, on revenues of C$72.71-million.
Copper Mountain reported a 10% year-on-year increase in revenues to C$61-million.
The company saw copper output rise 35% to 19.1-million pounds. The miner also produced 5 400 oz of gold and 98 600 oz of silver.
A permanent secondary crusher is being installed at the site at a capital cost of C$40-million. Progress was reported to be on budget and on schedule for a mid-summer start-up.
This crusher would replace the three temporary high-cost portable crushers.
"The 2014 first quarter production results are in line with our annual production guidance of 80-million to 90-million pounds of copper, despite some unscheduled downtime in March. The operational highlights for this first quarter include better-than-expected grade, improved mill availability and steady progress in mill throughput. These combined factors contributed to record production during the quarter,” Copper Mountain president and CEO Jim O'Rourke said in a statement.
During the quarter, copper output was interrupted owing to unscheduled downtime in March, resulting from a ball mill transformer failure. The company said that mill crews completed repairs in a timely manner and identified the root cause of the several transformer failures in recent months.
A permanent solution had been identified and would be implemented across all six mill transformers over the next four months. During the quarter the mill averaged 91% availability.
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