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Summary

  • Copper Mountain Mining had a record quarter which means the company is on track to meet its guidance.
  • The secondary crusher is up and running, and should provide further production improvements.
  • The best update is in the fine print. During the first week of August, the throughput was 13% (!) higher than in Q2 2014.
  • This confirms my bullish thesis for the company.

I recently released an article on Copper Mountain Mining (OTCPK:CPPMF) stating that the company offered a very nice leverage to the copper price. As Copper Mountain had (production-wise) a very nice quarter, this resulted in a record output of almost 20 million pounds of copper, as well as 5,000 ounces of gold and in excess of 110,000 ounces of silver as by-product. This was mainly due to a better mill throughput which increased by 4% compared to the first quarter of this year and a (much) higher head grade of 0.39% Cu.

This doesn't surprise me at all, as Copper Mountain seems to be in the final straight line to get the Copper Mountain mine to reach its desired and eyed throughput levels. The new secondary crusher was completed on time and within budget, and in the first week of august the company had an average throughput of almost 34,500 tonnes per day (which is a surprising 13% higher than the average throughput in Q2). This bodes well for the Q3 and Q4 production numbers and means the company is on target to meet its 80-90 million pound output target.

The total cash cost in Q2 decreased by 3.5% to $2.18/lbs, and I hope this trend will continue into Q3 and Q4 as this will allow Copper Mountain Mining to increase its cash position and reduce the net debt position. I like the operation a lot as it's in a very safe region and I'm glad to see the teething problems are being ironed out. It took a while, but Copper Mountain definitely is on the right track now!

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Source: Update: Copper Mountain Earnings