CPPMF - Copper Mountain surges on improved full-year production cost guidance

2023-03-27 12:32:27 ET

Copper Mountain Mining ( OTCPK:CPPMF ) +8.3% in Monday's trading after reporting a Q4 loss but forecasting higher production and grade in 2023, saying plant improvements support higher mill throughput and a better cost profile.

The company said it expects 2023 copper production of 88M-98M lbs, with gold production of 20K-30K oz and silver output of 350K-400K oz, while anticipating grade rising sequentially through this year's Q3, while likely will be the strongest quarter of the year.

Copper Mountain ( OTCPK:CPPMF ) also said it sees mill throughput increasing in 2023, averaging ~45K tons/day, up from 34,814 tons/day in 2022.

The miner sees lower production costs in 2023, with all-in sustaining costs of $2.40-$2.90/lb of copper, down from AISC of $4.20/lb of copper in 2022.

Q4 production of 15.9M lbs of copper equivalent including 13.3M lbs of copper, 4,791 oz of gold and 65,338 oz of silver were all down sharply from a year earlier, and FY 2022 output of 64.1M lbs of copper equivalent including 52.9M lbs of copper, 21,771 oz of gold and 247,291 oz of silver were below the company's revised guidance and down from 90.1M lbs of copper, 28,736 oz of gold and 523,821 oz of silver in 2021.

Copper Mountain ( OTCPK:CPPMF ) President and CEO Gil Clausen said the company faced numerous operational challenges in 2022 that resulted in a disappointing year, but "we are having a solid start to 2023... So far this year, production is in line with budget. 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."

Copper Mountain Mining's ( OTCPK:CPPMF ) stock has gained 16% so far this year but lost 53% in the past 12 months .

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