Vancouver-based Copper Mountain has reported a fourth-quarter and full-year net loss, despite a strong operational performance, which saw the miner increasing quarterly output by 9.7% and meeting its 2018 production guidance.
Fourth-quarter production increased to 24.5-million pounds of copper equivalent, comprising 20.6-million pounds of copper, 8 124 oz of gold and 62 711 oz of silver, at a lower C1 cash cost of $1.60/lb of copper produced.
For the full year, production increased by 4.6% from the prior-year period to 92.4-million pounds of copper equivalent, comprising 78.8-million pounds of copper, 28 250 oz of gold and 273 913 oz of silver, at a C1 cash cost of $1.77/lb.
Weaker copper prices, however, pushed down Copper Mountain’s revenue, with fourth-quarter revenue decreasing to C$73.1-million and the full year’s revenue to C$296-million. This compares with fourth-quarter revenue of C$73.15-million and full-year revenue of C$304.08-million in 2017.
The lower revenue and an increase in full-year cost of sales, coupled with noncash-related items, resulted in Copper Mountain booking a net loss of C$26.88-million for the year, compared with net income of C$67.34-million in 2017.
The fourth-quarter net loss was C$18.98-million, which compares with income of C$23.54-million a year earlier.
The adjusted income for the year also fell sharply to C$3.38-million, from C$46.6-million in 2017, with the fourth-quarter adjusted loss coming in at C$1.4-million.
Cash flow from operations decreased from C$57.27-million in 2017, to C$51.27-million in 2018.