Copper Mountain Mining ( OTCPK:CPPMF ) shares fell -12% following its Q3 results, where it cut copper production guidance for the full year to 55M-60M lbs.
The miner had already slashed production estimates to 65M-75M lbs at the end of Q2. Adjusted EPS for Q3 was -C$0.11 on revenues of C$58.26M (-57.5% Y/Y). Adjusted EBITDA swung to a loss of C$7.7M from a positive $77.1M last year and cash flow from operations was negative $7.5M.
Q3 copper production dropped 41% Y/Y to 13.16M lbs with all-in sustained cost more than doubling to $4.5/lb. Gold output fell 22% to 6,053 oz. Copper Mountain attributed the lower production numbers to a decrease in mill feed grade, mill throughput and copper recoveries.
The mining company also reported higher sustaining capital costs for Q3 mainly due to $6.8Mof expenditures for environmental water management systems. Work on the water management systems is underway and is expected to complete in Q4.
President and CEO Gil Clausen said: "We are now past an inflection point in the operation with main waste movement of Phase 4 completed. Ore grades are higher, recoveries are up, and the North Pit development has advanced beyond the higher oxide transitional zone. Our project team has also completed all our plant optimization projects."
"In the fourth quarter, we expect AIC to improve significantly and be in the US$2.90 to US$3.10 per pound range from our operational turnaround and benefit from the higher grades from Phase 4, where we expect an average of 0.27% Cu in Q4."
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Copper Mountain shares in red after more production guidance cuts in Q3