Copper Mountain Mining Posts Lower Q4 Production

Copper Mountain Mining (TSE: CMMC) fourth-quarter production was impacted by flooding in British Columbia.

The company explores for gold, silver, and copper deposits.

Q4 Results

Copper Mountain had a quarterly production of 16.7 million pounds of copper, 5,472 ounces of gold, and 80,377 ounces of silver in the three months ended December 31, compared to 23.1 million pounds of copper, 8,959 ounces of gold and 144,934 ounces of silver in the fourth quarter of 2020.

C1 cash cost for the fourth quarter of 2021 was $2.17 per pound of copper produced, as compared to $1.43 in Q4 2020.

Quarterly revenue for Q4 2021 came in at C$136.7 million (up 28.8% from Q4 2020), based on the sale of 19.4 million pounds of copper, 6,385 ounces of gold and 108,020 ounces of silver, net of pricing adjustments. 

Net income came in at C$31.5 million (C$0.11 per share) in the fourth quarter, up from C$28.5 million (C$0.10 per share) a year ago. Adjusted net income was C$23.3 million (C$0.11 per share), compared to C$5.5 million (C$0.03 per share) in the prior-year quarter.

Cash flow from operations for Q4 2021 was C$50.4 million (C$0.24 per share), down from C$51 million (C$0.26 per share) in Q4 2020.

CEO Commentary

Copper Mountain president and CEO Gil Clausen said, “Production was impacted late in the fourth quarter by severe weather including heavy rains and flooding in British Columbia followed by unprecedented cold temperatures which caused extremely difficult operating conditions, in addition to damage sustained to our secondary crusher. Despite these events, we met our sale targets for the quarter and achieved our upwardly revised annual production guidance, which we had increased earlier in the year. We came in right at the mid-point of our original guidance. Further, we have commissioned our new third ball mill, which completes the 45,000 tonnes per day mill expansion project.”

Wall Street’s Take

Last month, BMO Capital analyst Rene Cartier kept a Buy rating on CMMC with a price target of C$4.75. This implies 21.5% upside potential.  

Overall, the consensus among Wall Street analysts is that CMMC is a Strong Buy based on three Buys. The average Copper Mountain Mining price target of C$4.58 implies upside potential of about 17% to current levels.  

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