Copper Mountain Mining Corporation (TSX: CMMC) (ASX: C6C) is pleased to announce that the Copper Mountain Mine exceeded 2020 production guidance and achieved record quarterly production for copper, gold and silver in the fourth quarter. All results are reported on a 100% basis.
2020 Production Highlights
2021 Production and Cost Guidance Highlights
“Our operating team executed on our operating plan beating our production guidance for this year,” commented Gil Clausen, Copper Mountain’s President and CEO. “We finished the year strong with record production in the fourth quarter as a result of higher grades, which we expect to continue in 2021. We are forecasting production to increase by up to 22% to 85 to 95 million pounds of copper in 2021 with higher grades and increased recovery and throughput post commissioning of the 45,000 tonnes per day mill expansion in the third quarter of 2021. Further, we are maintaining a low cost profile in 2021 with all-in cost expected to be between US$1.80 to $2.00 per pound, which is in line with 2020 expectations.”
Mr. Clausen added, “We are continuing to build up a healthy cash position while investing in our low risk, high return growth projects at the Copper Mountain Mine. Following the completion of the mill expansion to 45,000 tonnes per day this year, we will focus on a further mill expansion to 65,000 tonnes per day.”
Q4 and 2020 Production Results
|Q4 2020||2020||2020 Guidance|
|Copper (Mlbs)||23.1||77.6||70 to 75|
Copper production for the fourth quarter of 2020 increased 22% from the third quarter of 2020 and 23% when compared to the fourth quarter of 2019. Production during the quarter was 23.1 million pounds of copper, 8,959 ounces of gold and 144,934 ounces of silver for a total production of 28.7 million copper equivalent pounds. Increased copper production was a result of higher copper grade. Grade is expected to remain strong in 2021.
In 2020, the Copper Mountain Mine produced 77.6 million pounds of copper, exceeding guidance of 70 to 75 million pounds. Gold production was 29,227 ounces and silver production was 392,494 ounces. Copper equivalent production was 98.2 million copper equivalent pounds.
Based on the updated life of mine production plan announced on November 30, 2020, the Company expects 2021 production to be 85 to 95 million pounds of copper as a result of higher grades and improved recoveries.
|Copper Production||85 to 95 million pounds|
Copper Mountain Mine’s 45,000 tonnes per day mill expansion project is expected to be complete with commissioning of the third ball mill by the end of the third quarter of 2021. The 45,000 tonnes per day mill expansion will increase throughput and improve copper recovery, resulting in higher production.
Gold production is expected to be 25,000 to 35,000 ounces and silver production is expected to be 500,000 to 550,000 ounces in 2021.
The Company expects all-in cost (AIC) to remain low in 2021, estimating AIC to be between US$1.80 to US$2.00 per pound as a result of higher production and improved grade. All Dollars are in US Dollars and assume a CAD to USD exchange rate of 1.33 to 1.
|All-in cost (US$/lb)||$1.80 to $2.00|
AIC includes sustaining capital, lease payments and applicable administration, in addition to deferred stripping and low-grade stockpile inventory expense. Sustaining capital in 2021 is expected to be approximately US$9 million and deferred stripping is expected to be approximately US$7 million.
Total growth or expansionary capital in 2021 is expected to be approximately US$33 million. The majority of the capital to be spent in 2021 is for the installation of the third ball mill for the 45,000 tonnes per day mill expansion project at the Copper Mountain Mine. Capitalized exploration for 2021 is expected to be approximately US$3 to US$4 million, with the focus on continued reserve expansion at the Copper Mountain Mine.
About Copper Mountain Mining Corporation
Copper Mountain’s flagship asset is the 75% owned Copper Mountain mine located in southern British Columbia near the town of Princeton. The Copper Mountain mine currently produces approximately 100 million pounds of copper equivalent. Copper Mountain also has the development-stage Eva Copper Project in Queensland, Australia and an extensive 2,100 km2 highly prospective land package in the Mount Isa area. Copper Mountain trades on the Toronto Stock Exchange and Australian Stock Exchange.
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We acknowledge the [financial] support of the Government of Canada.