Copper Mountain Mining Corporation reported fourth quarter and full-year results before the bell Monday, revealing revenue that topped Street expectations and promising 2023 production guidance.
The company posted revenue of $90.3 million in the quarter ended December 31, down from $136.8 million a year earlier but ahead of analyst expectations of $87.4 million. Its adjusted net loss was $0.10 per share, compared to a gain of $0.11 per share in 2021 and wider than Street expectations of a $0.01 loss.
Copper Mountain Mining produced 15.9 million pounds of copper equivalent, including 13.3 million pounds of copper, 4,791 ounces of gold, and 65,338 ounces of silver.
For the year, the company produced 64.1 million pounds of copper equivalent, including 52.9 million pounds of copper, 21,771 ounces of gold, and 247,291 ounces of silver, good for revenue of $301.5 million.
CEO Gil Clausen acknowledged that 2022 was a challenging year. Damage to the company’s mining crushers, quality problems with its supplier, a ransomware attack and other obstacles capped its potential.
However, 2023 represents a new era, he said.
“We did not meet our expectations in 2022, but with these issues now behind us, we are having a solid start to 2023,” Clausen said. “... 2023 will be a year focused on operational execution and exploration investment at Copper Mountain. ...We also expect costs to be materially lower from higher production, shorter haul distances, minimal expansionary capital with many one-time project costs now behind us.”
Investors seem to think so too. Copper Mountain Mining shares traded more than 8% higher at C$1.96 in Toronto and more than 9% higher at US$1.44 in New York on Monday.
Looking ahead, the Vancouver-based company projects 2023 production of between 88 and 98 million pounds of copper at an all-in-sustaining cost of US$2.45 to US$2.95 per pound of copper produced.
The company is also bringing in a new CEO, effective April 24.
"Copper Mountain's incoming CEO, Patrick Merrin, has a wealth of operational and technical mining experience, and is the right person to lead the company through this phase of operational excellence,” Clausen said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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