Full-year cash flow from operations came in at C$121.6 million, with adjusted net earnings of C$20.6 million. The company closed out the year with C$85.6 million in cash and equivalents, a C$32-million increase over the third quarter and a C$53.4-million increase year-on-year.
In November, Copper Mountain tabled an updated mine plan for the mine, that incorporated a further mill expansion, to 65,000 t/d
For the year, Copper Mountain generated 77.6 million lb. of copper, exceeding prior guidance for 70 to 75 million lb. of the red metal.
With higher grades expected to continue into 2021, this year’s copper production is expected in the range of 85 to 95 million lb. of copper. Similar to 2020, the output is expected to be weighted more towards the second half of the year as grades trend upwards and an ongoing mill expansion improves recoveries and increases throughputs. All-in costs are forecast around $1.8 to $2 per lb.
“We continued to post another strong quarter with record quarterly production for copper, gold and silver,” Gil Clausen, Copper Mountain’s president and CEO, said in a release. “We expect our low cost profile to remain in 2021 and for production to increase by up to 22% to the range of 85 to 95 million pounds of copper this year. Increased production will be driven by higher grades, as already experienced in the fourth quarter of 2020, and increased throughput and recovery following the commissioning of the 45,000-tonnes-per-day mill expansion planned for completion in the third quarter of 2021.”
In the fourth quarter, the company also restarted the Ball Mill 3 expansion project, aimed at growing throughputs to 45,000 t/d, from 40,000 t/d currently, that is expected to be completed in the third quarter of this year. Copper recoveries are also expected to increase from a finer ore grind. Demolition is now complete in the mill installation area and foundation excavation work has started.
In November, Copper Mountain tabled an updated mine plan for the mine, that incorporated a further mill expansion, to 65,000 t/d. The expansion would increase production to 106 million lb. of copper and 60,000 gold oz. in its first 10 years.
Mitsubishi Materials holds a 25% interest in the Copper Mountain mine.
Midday Tuesday, Copper Mountain’s stock was up 6% on the TSE. The company has a C$524 million market capitalization.
(This article first appeared in the Canadian Mining Journal)
