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Copper Mountain Mining (ASX:C6C) dodges COVID-19 impact

Mining
ASX:C6C
28 April 2020 10:45 (AEST)

Copper Mountain Mining (C6C) has announced its results for the first quarter, noting that COVID-19 has not affected its results.

Copper Mountain revised their mining plan in early March to accommodate COVID-19 related regulations, including social distancing on sites, reduced man hours, reduced crew numbers and a number of other operational plans to avoid impacts to production. 

Revenue for the quarter totalled roughly A$54.7 million. This amounted to a loss of $0.17 per share for the quarter, primarily due to the inclusion of non-cash foreign exchange loss equating to $0.14 per share related to the company’s debt, which is traded in U.S. dollars.

Production totalled 21.8 million pounds of copper equivalent, made up of 17.5 million pounds of copper, 6,139 ounces of gold and 80,016 ounces of silver.

All-in sustaining production costs for Copper Mountain over the March quarter were approximately three Australian dollars per pound.

Copper Mountain’s CEO Gil Clausen said the results highlighted the company’s ability to perform during the COVID-19 pandemic.

“We rapidly responded to the potential market impacts of COVID-19 in early March with our announcement of a revised mine plan in light of copper price uncertainty,” Gil stated.

“While this mine plan has now been fully implemented and the company is efficaciously reducing expenditures, unit costs remained higher in the early part of the quarter as we were still operating under the previous mine plan,” he said.

The junior miner also secured a deal with Mitsubishi Materials Corporation to extend the maturity of the company’s funding advances out to June 30, 2023. This has boosted Copper Mountain’s working capital by $135 million for the three-year period.

Copper Mountain Mining is trading flat at 43.5 cents per share at 10:22 am AEST.

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