Earlier today, Copper Mountain Mining (TSE:CMMC), a copper producer, released its Q4-2022 and full-year earnings results while providing 2023 guidance. Despite a mixed report — CMMC beat revenue estimates but missed earnings-per-share (EPS) estimates — the stock finished 11.6% higher today.
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Q4-2022 Results
Revenue of C$90.3 million beat estimates of C$87.39 million, but adjusted EPS came in at -C$0.10, a much larger loss than the -C$0.01 loss analysts were calling for. Also, cash flow from operations amounted to -C$15.3 million, which translates to -C$0.07 per share.
Meanwhile, copper equivalent production totaled 15.9 million pounds, comprising 13.3 million pounds of copper, 4,791 ounces of gold, and 65,338 ounces of silver. The company ended the fourth quarter with cash and cash equivalents and restricted cash of C$214.6 million. However, it also ended the quarter with debt of C$307.9 million.
Full-Year Results
For the full year, revenue came in at C$301.5 million (a 47.9% decrease), and adjusted EPS was -C$0.23 compared to positive earnings per share of C$0.63 in the prior year. In contrast, cash flow from operations was actually positive, at C$0.09 per share. Lastly, 64.1 million pounds of copper equivalent were produced, comprising 52.9 million pounds of copper, 21,771 ounces of gold, and 247,291 ounces of silver.
For 2023, the company expects to produce 88 million to 98 million pounds of copper and expects an all-in cost (AIC) of US$2.45 to US$2.95/pound of copper compared to 2022’s AIC of US$4.78/pound.
Is CMMC Stock a Buy, According to Analysts?
According to analysts, CMMC stock comes in as a Moderate Buy based on two Buy ratings assigned in the past three months. At C$2.63, the average CMMC stock price target implies 30.2% upside potential.
