Copper Mountain Mining (TSX: CMMC) exceeded its revised operating plan for the second quarter of 2020, the Vancouver-based miner announced on Wednesday. The company operates three mines, one in British Columbia and two in Australia.
Production for the three-month period reached 23.9 million lb. copper-equivalent, comprising of 18.1 million lb. copper, 7,499 oz. gold and 86,126 oz. silver.
Revenues rose to C$91 million from C$65 million in the same period last year, while gross profit saw a significant jump to C$30.3 million compared to C$1.6 million in Q2 2019 as a result of reduced cash costs. Cash flow from operations before working capital changes was C$41.5 million, up from C$4.7 million in Q2 2019.
"We are pleased to have achieved such a strong quarter despite the global impact of the Covid-19 virus and the associated lower copper price environment," commented Gil Clausen, Copper Mountain's president and CEO.
"With higher metal prices and lower costs, our objective is to build our cash position to allow for a rapid restart of the second stage of the mill expansion project, the installation of the third ball mill," Clausen said.
The company completed the first stage of its 45,000-tonne per day mill expansion and the installation of the direct flotation reactors in early July. The miner has also maintained spending on long lead time items associated with installation of the third ball mill and anticipates resuming construction in late 2020 or early 2021.
Copper Mountain has reaffirmed its 2020 production of 70-75 million lb. copper at all-in sustaining costs (AISCs) of $2.20-$2.35 per lb. copper.
Production is expected to be more heavily weighted to the second half of the year as a result of higher grades and as the company begins to mine coarser-grained ore areas that have higher recovery associated with them.
AISCs for the first half of 2020 were below guidance, and although the company expects to continue to operate at lower costs in the second half, it is not adjusting guidance at this time given any uncertainty surrounding the pandemic.
At press time in Toronto, Copper Mountain Mining was trading at 72 ? a share within a 52-week trading range of 28 ? and 87 ?. The company has a market capitalization of C$140 million.
- This article first appeared in our sister publication, MINING.com.