Copper Mountain Mining Announces Q1 2022 Financial Results

27 Apr 2022 05:00 CEST

Vancouver, British Columbia – April 26, 2022 – Copper Mountain Mining
Corporation (TSX: CMMC | ASX:C6C) (the “Company” or “Copper Mountain”) announces
first quarter 2022 financial and operating results. All currency is in Canadian
dollars, unless otherwise stated. All results are reported on a 100% basis.
The Company’s Financial Statements and Management’s Discussion & Analysis
(“MD&A”) are available at www.CuMtn.com and www.sedar.com.

Gil Clausen, Copper Mountain’s President and CEO, stated, “We managed through a
very difficult first quarter, which was largely due to temporary impacts to
production and costs. Lower production was a result of operating at reduced
mill throughput and lower grade, as we continued to run the secondary crusher at
lower power draw due to the damaged main shaft, resulting in low and very coarse
feed to the mill. This issue is now resolved. We installed a new main shaft in
early April and the secondary crusher is back at full capacity. A spare shaft
was also purchased for delivery in August. With the newly commissioned third
ball mill operating, and the secondary crusher back on spec, we are ramping up
the milling circuit to full capacity of 45,000 tonnes per day and expect to be
at this level consistently through the balance of 2022. Higher grade ore from
Phase 4 of the Copper Mountain Main Pit is planned for the second half of 2022
with the newly developed North Pit providing the bulk of the feed through Q2.
The first quarter was an aberration due to a confluence of adverse events, which
are now behind us. We expect the second quarter to improve from the first
quarter and the second half to be considerably stronger than the first half of
the year. However, we are increasing our all-in cost guidance for 2022 to
US$2.25 to US$2.75 per pound of copper to reflect Q1 2022 results and the
inflationary pressures being experienced globally.”

“We also had many positive achievements in the quarter, with large strides in
our sustainability efforts” added Mr. Clausen. “The Company exceeded our 2021
sustainability targets of achieving at least an “A” or “Yes” rating on each of
the Mining Association of Canada’s Towards Sustainable Mining protocols. The
Trolley Assist project, which aims at reducing carbon emissions at the Copper
Mountain Mine by at least 30%, was successfully commissioned, and we wrapped-up
our extensive exploration program at the Copper Mountain Mine. Work is now
underway on updating the mineral reserve and mineral resource estimate with a
new life of mine plan, which will include an expansion study. All of these are
progressing on schedule for mid-2022.”
SUMMARY
• Production in Q1 2022 was 15.6 million pounds of copper equivalent (13.2
million pounds of copper, 5,135 ounces of gold, and 55,993 ounces of silver),
48% lower than Q1 2021, which was a record production quarter, primarily driven
by lower mill head grade and lower throughput resulting from the damaged
secondary crusher.
• The secondary crusher’s new main shaft was installed in early April and the
mill is ramping up to full capacity.
• Revenue for Q1 2022 was $93.9 million from the sale of 13.5 million pounds of
copper, 5,076 ounces of gold, and 60,038 ounces of silver.
• C1 cash cost (1) per pound of copper produced in Q1 2022 was US$3.58, higher
than Q1 2021 of US$1.15, primarily due to lower copper production, temporary
contractor maintenance expenses, temporary contract crushing expenditures, and
inflationary pressures on costs, particularly diesel.
• All-in sustaining cost (“AISC”) (1) per pound of copper of US$4.45 and all-in
cost (“AIC”) (1) per pound of copper of US$5.08 was significantly higher
compared to Q1 2021 largely driven by higher C1 cash cost, the lease expense and
capitalization of assembly costs for seven new Trolley Assist haul trucks, the
acquisition cost of new “MineSense” shovel grade control systems and new haul
road construction costs that will greatly improve truck cycle times starting in
Q2 2022.
• Net loss for Q1 2022 was $4.2 million, or ($0.03) on a per-share basis.
• Cash flow from operations for Q1 2022 was $33.3 million, or $0.16 on a
per-share basis(1).
• Cash, cash equivalents and restricted cash at the end of March 31, 2022 was
$159.2 million.
• Exceeded 2021 sustainability targets, achieving at least an “A” or “Yes”
rating on each of the Mining Association of Canada’s Towards Sustainable Mining
protocols.
• Successfully commissioned the Trolley Assist project, which targets reduction
of carbon emissions at the Copper Mountain Mine by at least 30%.
• Positive drilling results continued during the quarter at New Ingerbelle,
extending mineralization to the west, with the Company completing the balance of
the 2021 drill program in the quarter.
• Entered into zero-cost collar options for 3.3 million pounds of copper per
month through 2022 with a floor price of US$4.00 per pound and an average
ceiling price of US$4.91 per pound.

(1) The Company reports the non-GAAP financial measures of C1 cash costs, AISC
and AIC per pound of copper produced and cash flow from operations per share to
manage and evaluate its operating performance. See “Cautionary Note Regarding
Non-GAAP Performance Measures” in this press release.

SUMMARY OF OPERATING RESULTS

Copper Mountain Mine (100% Basis) Q1 2022
Q1 2021
Mine
Total tonnes mined (000s) 12,230 15,372
Ore tonnes mined (000s) 2,888 3,428
Waste tonnes (000s) 9,342 11,944
Stripping ratio 3.23 3.48

Mill
Tonnes milled (000s) 2,968 3,430
Feed Grade (Cu%) 0.25 0.42
Recovery (%) 82.0 80.2
Operating time (%) 86.3 93.9
Tonnes milled (TPD) 32,978 38,111

Production
Copper (000s lb) 13,224 25,526
Gold (oz) 5,135 8,187
Silver (oz) 55,993 160,484

Sales
Copper (000s lb) 13,487 27,501
Gold (oz) 5,076 8,553
Silver (oz) 60,038 161,657

C1 cash cost per pound of copper produced (US$)(1) 3.58 1.15
AISC per pound of copper produced (US$)(1) 4.45 1.46
AIC per pound of copper produced (US$)(1) 5.08 1.71

Average realized copper price (US$/lb) 4.54 3.90

(1) The Company reports the non-GAAP financial measures of C1 cash costs, AISC
and AIC per pound of copper produced to manage and evaluate its operating
performance. For further information, see “Cautionary Note Regarding Non-GAAP
Performance Measures” in this press release.

Production
The Copper Mountain Mine produced 13.2 million pounds of copper, 5,135 ounces of
gold, and 55,993 ounces of silver in Q1 2022, as compared to Q1 2021, which was
a record production quarter, of 25.5 million pounds of copper, 8,187 ounces of
gold, and 160,484 ounces of silver. Production was lower during the quarter due
to lower grades and reduced mill throughput as the Company continued to run the
secondary crusher at reduced rates due to the damaged main shaft which occurred
late in 2021. The Company has determined the root cause of the damage and has
since improved the systems to prevent a recurrence. The main shaft was
temporarily weld repaired in December 2021, but the temporary nature of the fix
required the Company to reduce crushing power to sustain operations, thereby
increasing the crushed product size of the ore feed going to the SAG mill. The
coarser ore feed resulted in low SAG throughput. A new main shaft was installed
in the first week of April 2022 at a cost of approximately $0.8 million and
throughput rates have since returned to normal operating levels. With the
recently commissioned third ball mill, the mill will be ramping up towards the
full mill capacity of 45,000 tonnes per day this month, which will be a key
driver to increased production for the remainder of the year.

The mill processed a total of 3.0 million tonnes of ore during the quarter as
compared to 3.4 million tonnes in Q1 2021. The average mill feed grade was
0.25% Cu during Q1 2022, as compared to average feed grade of 0.42% Cu in Q1
2021. This was due to ore being mined predominantly from the lower grade Phase
2 area for most of the quarter. The Company plans on mining from the
higher-grade Phase 4 area of the Main Pit and the North Pit in the second half
of 2022, further contributing to higher production levels in the second half of
the year.

Copper recovery was 82.0% in Q1 2022 as compared to 80.2% in Q1 2021. Mill
availability averaged 86.3% for Q1 2022 as compared to 93.9% in Q1 2021. Mill
availability was lower in Q1 2022 principally due to the replacement of the SAG
mill feed conveyor belt during the quarter and additional mill downtime related
to the damaged secondary crusher. The SAG mill feed conveyor belt was fully
replaced for the first time since the start of operations.

The Company continues to advance the plant improvement and optimization projects
currently underway at the mine. Both the installation of additional cleaner
circuit capacity to support maximizing recovery on slower kinetic ore types and
the installation of additional filtration capacity are expected to be completed
during the first half of 2022. The expansion to the rougher flotation circuit
is planned to be completed in Q3 2022. With the completion of these projects,
the replacement of the new main shaft for the secondary crusher, which is now
complete, and as Copper Mountain begins to mine higher grade ore from the Phase
4 area, production is expected to be considerably higher in the second half of
2022.

Costs

C1 cash cost per pound of copper produced, net of precious metal credits, for Q1
2022 was US$3.58, as compared to US$1.15 in Q1 2021. The variance in C1 cash
costs for Q1 2022, as compared to Q1 2021, was due to several items:

• Lower copper production of 48% due to lower mill feed grade and reduced mill
throughput.
• Temporary costs incurred in the quarter for mobile equipment repairs and
maintenance, portable crushing equipment to supplement the secondary crusher and
increased maintenance contractor support required to assist with managing
COVID-19 related workforce absences and major conveyor belt rip repairs due to
the significant cold weather that occurred in late 2021 and early 2022. These
additional costs are not expected to recur through the remainder of 2022.
• To a lesser extent, costs increased due to inflationary pressures on diesel,
steel, and mill consumable costs with price increases of 63%, 19%, and 10%,
respectively.
• Lower precious metal credits resulting from lower gold and silver production
due to lower grades and reduced mill throughput.

With production levels expected to increase throughout the remainder of the year
and an easing of the temporary operating costs from Q1 2022, the Company
anticipates C1 cash cost per pound of copper to markedly improve for the
remainder of 2022.

AISC per pound of copper produced for Q1 2022 was US$4.45, as compared to
US$1.46 in Q1 2021. AISC carries forward from C1 cash costs with the addition
of $14.6 million in sustaining capital, lease, and applicable administration
expenditures in Q1 2022 as compared to $10.1 million in Q1 2021. The increase
was primarily due to higher leasing costs of $3.9 million as compared to $2.7
million in Q1 2021 as well as sustaining capital of $10.2 million in Q1 2022 as
compared to sustaining capital of $6.4 million in Q1 2021. The higher leasing
costs were principally due to the purchase of new Trolley Assist haul trucks.
Sustaining capital costs for Q1 2022 were higher than Q1 2021 mainly due to $2.9
million of expenditures to improve grade control systems and new road
construction that will eliminate traffic interference with haulage trucks on the
main waste haul road, thereby improving productivity through reducing haul truck
cycle times and delays. These haul truck productivity improvement capital
expenditures are expected to be completed in Q2 2022. Sustaining capital also
continues to include costs associated with the mine’s environmental water
management projects. The mine water management projects have been substantially
advanced and are expected to be fully completed in Q3 2022.

AIC per pound of copper produced for Q1 2022 was US$5.08, as compared to US$1.71
in Q1 2021. AIC carries forward from AISC with the addition of $10.5 million in
deferred stripping as compared to $8.0 million deferred stripping in Q1 2021.
Deferred stripping costs in Q1 2022 were from regular development activities as
the Company continued to advance development of the Phase 4 pushback of the
Copper Mountain Main Pit.

SUMMARY OF FINANCIAL RESULTS

Results and Highlights (100%)
Three months ended
March 31,
(In thousands of CDN$, except for per share amounts) 2022
$ 2021
$
Revenue 93,858 162,207
Gross profit 18,576 96,280
Gross profit before depreciation(1) 24,051 103,966
Net income (loss) (4,162) 52,118
Income (loss) per share – basic (0.03) $0.18
Adjusted earnings (loss)(1) (9,277) 33,419
Adjusted earnings (loss) per share – basic (1) (0.04) $0.16
EBITDA(1) 11,256 95,985
Adjusted EBITDA(1) 6,141 77,286
Cash flow from operations 33,314 79,593
Cash flow from operations per share – basic (1) 0.16 0.38
Cash and cash equivalents – end of period 143,501 137,065

(1) The Company reports the non-GAAP financial measures of gross profit before
depreciation, adjusted earnings, adjusted earnings per share, EBITDA and
adjusted EBITDA to manage and evaluate its operating performance. For further
information, see “Cautionary Note Regarding Non-GAAP Performance Measures”.

In Q1 2022, revenue was $93.9 million, net of pricing adjustments and treatment
charges, compared to $162.2 million in Q1 2021. Revenue in Q1 2022 is based on
the sale of 13.5 million pounds of copper, 5,076 ounces of gold, and 60,038
ounces of silver. This compares to 27.5 million pounds of copper, 8,553 ounces
of gold and 161,657 ounces of silver sold in Q1 2021. The decrease in revenue
was due to lower quantities of all metal sold and a smaller positive mark to
market and final adjustment on concentrate sales of $7.1 million as compared to
a positive mark to market and final adjustment of $15.5 million for Q1 2021.
Lower copper production and sales in the quarter was due to lower grades and
reduced mill throughput as the Company continued to run the secondary crusher at
reduced rates due to the damaged main shaft.

Cost of sales in Q1 2022 was $75.3 million as compared to $65.9 million for Q1
2021. The increase in cost of sales can largely be attributed to the increase
in scheduled repairs and maintenance during the quarter as well as additional
costs incurred for portable crushing equipment to supplement the secondary
crusher reduced capacity during the quarter as a result of the damaged main
shaft. Cost of sales also increased as a result of higher fuel and steel costs,
increased maintenance contractor support required to assist with managing
COVID-19 related workforce absences and the significant cold weather that
occurred in late 2021 and early 2022.

The Company generated gross profit of $18.6 million in Q1 2022 compared to a
gross profit of $96.3 million in Q1 2021. The Company reported a net loss of
$4.2 million for Q1 2022 compared to net income of $52.1 million in Q1 2021.
The variance in net income for Q1 2022, as compared to Q1 2021, was due to
several items, including:
• Lower revenue in Q1 2022 due to less pounds of copper sold as compared to Q1
2021.
• Q1 2022 included a $7.1 million positive mark to market and final adjustment
from provisional pricing on concentrate sales, as compared to an $15.5 million
positive mark to market and final adjustment from provisional pricing on
concentrate sales for Q1 2021.
• Higher cost of sales in Q1 2022 due to scheduled maintenance and increased
operating costs as compared to Q1 2021.
On an adjusted basis, the Company recorded a net loss of $9.3 million in Q1
2022, or $0.04 per share, compared to net earnings of $33.4 million in Q1 2021,
or $0.16 per share.

PROJECT DEVELOPMENT UPDATE
Copper Mountain Mine, Canada
The Company successfully installed and commissioned Ball Mill 3 in the second
half of 2021. The Ball Mill 3 Expansion Project was designed to increase mill
throughput to 45,000 tonnes per day from 40,000 tonnes per day and improve
copper recovery due to achieving a finer ore grind. Ball Mill 3 operated well
during the quarter.

The plant optimization and improvement projects at the mine site continue to
progress. The cleaner column expansion project and the filter press expansion
are on track to be completed by the end of Q2 2022. The rougher expansion
project is in progress and expected to be completed in Q3 2022. Phase 1 of the
Trolley Assist project was completed during the first quarter and on April 4,
2022 the Company announced the successful commissioning of the one kilometer
trolley-assist haul ramp and seven pantograph-equipped electric haul trucks.


Eva Copper Project, Australia
The Company announced updated economics for the Eva Copper Project, including
capital and operating costs, at the end of 2021. The Eva Copper Project’s
economics remain strong and have improved compared to the May 2020 Feasibility
Study. The Company also formally approved the construction plan for the Eva
Copper Project subject to advancing detailed engineering to 80%, obtaining
committed project financing and the lifting of COVID-19 restrictions in
Queensland, Australia. The Company continues to advance project financing
discussions and has engaged Ausenco Projects Australia Pty Ltd to complete
detailed engineering on the project.

Exploration Update
Canada
The drilling program, which was initiated in March 2021 with the objective of
expanding resources and reserves at the Copper Mountain Main Pit, North Pit and
New Ingerbelle, was completed in March 2022. The program consisted of a total
of 38,000 metres of diamond drilling. Results were positive with significant
copper intersections below the current reserve pits.
In January, the Company announced continued positive results from drilling at
New Ingerbelle, extending mineralization at depth and to the west. For details,
please see the Company’s January 20, 2022 and September 9, 2021 press releases.
The Company plans to incorporate the results of the 2021-2022 drilling program
into an updated mineral reserves and mineral resources estimate, along with a
new “Life of Mine Plan” based on an expansion, which is expected to be published
in mid-2022.

Australia
In late 2021, the Company completed an exploration program on its Cameron Copper
Project, located approximately 40 kilometres south of its Eva Copper Project.
The program was designed to discover additional copper, copper-gold or gold
deposits. The program, which consisted of detailed geophysical, geochemical,
and geological surveys followed by drill testing, produced encouraging results
with multiple mineralized zones identified.

A total of 60 reverse circulation holes (6,997 metres of drilling) and 7 diamond
drill holes (1,341 metres of drilling) were completed on a series of targets at
Cameron (C1, C1 South, C2, C3, C6, and C24). The drill program encountered
intercepts of high-grade mineralization, within long, low-grade mineralized
envelopes, with lateral continuity between intercepts of up to 1 kilometre. For
drill hole results please see Copper Mountain’s October 12, 2021 press release.
Analysis and interpretation of the drilling results is ongoing and will guide
further target definition and drilling in 2022.

OUTLOOK
As a result of the production results in Q1 2022, the Company expects to achieve
the lower end of its annual guidance range of 80 to 90 million pounds of copper.
The Company expects production in the second half of the year to be stronger
than the first half of 2022 as throughput rates reach the increased capacity of
45,000 tonnes per day following the secondary crusher repair in April 2022 and
as the Company mines higher grade ore from Phase 4 of the Copper Mountain Main
Pit and North Pit. The second quarter of 2022 is expected to be a transition
quarter as production and costs begin to improve from the first quarter, with
the second half of the year expected to be significantly stronger.

The Company is increasing its AIC per pound of copper cost guidance for 2022 to
be between US$2.25 to US$2.75 as a result of the higher-than-planned AIC in Q1
2022 and inflationary pressures. As production is expected to increase
throughout 2022, and as many cost items in Q1 2022 were non-recurring in nature,
the Company expects AIC to improve for the remainder of 2022.
Please see “Cautionary Note Regarding Forward-Looking Statements.”

Q1 2022 FINANCIAL AND OPERATING RESULTS CONFERENCE CALL AND WEBCAST

Copper Mountain will host a conference call on Tuesday, April 26, 2022 at 7:30
am (Pacific Time) for senior management to discuss first quarter 2022 results.

Dial-in information:
Toronto and international: 1 (416) 764 8650
North America (toll-free): 1 (888) 664 6383
Webcast:
https://produceredition.webcasts.com/starthere.jsp?ei=1540119&tp_key=3297d7e2a6


Replay information:
Toronto and international: 1 (416) 764 8677, Passcode: 910085#
North America (toll-free): 1 (888) 390 0541, Passcode: 910085#

The conference call replay will be available until 8:59 pm (Pacific Time) on May
3, 2022. An archive of the audio webcast will also be available on the
company’s website at http://www.cumtn.com.

About Copper Mountain Mining Corporation

Copper Mountain’s flagship asset is the 75% owned Copper Mountain Mine located
in southern British Columbia near the town of Princeton. The Copper Mountain
Mine currently produces approximately 100 million pounds of copper equivalent
per year. Copper Mountain also has the 100% owned development-stage Eva Copper
Project, which is expected to add approximately 100 million pounds of copper
annually, in Queensland, Australia, and an extensive 2,100 km2 highly
prospective land package in the Mount Isa area. Copper Mountain trades on the
Toronto Stock Exchange under the symbol “CMMC” and Australian Stock Exchange
under the symbol “C6C”.

Additional information is available on the Company’s web page at www.CuMtn.com.

On behalf of the Board of

COPPER MOUNTAIN MINING CORPORATION
“Gil Clausen”

Gil Clausen, P.Eng.
President and Chief Executive Officer

For further information, please contact:
Letitia Wong
Executive Vice President, Strategy and Corporate Development
Telephone: 604-682-2992
Email: Letitia.Wong@CuMtn.com

Website: www.CuMtn.com


Cautionary Note Regarding Forward-Looking Statements
This document may contain “forward looking information” within the meaning of
Canadian securities legislation and “forward-looking statements” within the
meaning of the United States Private Securities Litigation Reform Act of 1995
(collectively, “forward-looking statements”). These forward-looking statements
are made as of the date of this document and Copper Mountain does not intend,
and does not assume any obligation, to update these forward-looking statements,
whether as a result of new information, future events or otherwise, except as
required under applicable securities legislation.

All statements, other than statements of historical facts, are forward-looking
statements. Generally, forward-looking statements relate to future events or
future performance and reflect our expectations or beliefs regarding future
events.

In certain circumstances, forward-looking statements can be identified, but are
not limited to, statements which use terminology such as “plans”, “expects”,
“estimates”, “intends”, “anticipates”, “believes”, “forecasts”, “guidance”,
scheduled”, “target” or variations of such words, or statements that certain
actions, events or results “may”, “could”, “would”, “might”, “occur” or “be
achieved” or the negative of these terms or comparable terminology. In this
document, certain forward-looking statements are identified, including
production and cost guidance, anticipated production at the Copper Mountain
Mine, expectations regarding the impact of the COVID-19 pandemic on operations,
financial condition and prospects, anticipated metals prices and the anticipated
sensitivity of the Company’s financial performance to metals prices, the timing
and results of the Company’s exploration and development programs, the timing of
the Company’s plant improvement and optimization projects at the Copper Mountain
Mine, the timing of commissioning the first four Trolley Assist haul trucks at
the Copper Mountain Mine, the timing of the Company’s updated mineral reserves
and mineral resources estimate and new life of mine plan for the Copper Mountain
Mine, the timing for the completion of detailed engineering for the Eva Project,
the timing of studies, announcements, and analysis, events that may affect its
operations and development projects, anticipated cash flows from operations and
related liquidity requirements, the anticipated effect of external factors on
revenue, such as commodity prices, estimation of mineral reserves and resources,
mine life projections, reclamation costs, economic outlook, the impact of
inflation, government regulation of mining operations, and business and
acquisition strategies. Forward-looking statements involve known and unknown
risks, uncertainties and other factors that could cause actual results,
performance, achievements and opportunities to differ materially from those
implied by such forward-looking statements. Factors that could cause actual
results to differ materially from these forward-looking statements include,
among others, the successful exploration of the Company’s properties in Canada
and Australia, market price, continued availability of capital and financing and
general economic, market or business conditions, extreme weather events,
material and labour shortages, the reliability of the historical data referenced
in this document and risks set out in Copper Mountain’s public documents,
including in each management’s discussion and analysis, filed on SEDAR at
www.sedar.com. The potential effects of the COVID-19 pandemic on Copper
Mountain’s business and operations are unknown at this time, including Copper
Mountain’s ability to manage challenges and restrictions arising from COVID-19
in the communities in which Copper Mountain operates and its ability to continue
to safely operate and to safely return the business to normal operations. The
impact of COVID-19 is dependent on a number of factors outside of the Company’s
control and knowledge, including the effectiveness of the measures taken by
public health and governmental authorities to combat the spread of the disease,
global economic uncertainties and outlook due to the disease, and the evolving
restrictions relating to mining activities and to travel in certain
jurisdictions in which Copper Mountain operates. Although Copper Mountain has
attempted to identify important factors that could cause the Company’s actual
results, performance, achievements and opportunities to differ materially from
those described in its forward looking statements, there may be other factors
that cause the Company’s results, performance, achievements and opportunities
not to be as anticipated, estimated or intended. While the Company believes that
the information and assumptions used in preparing the forward-looking statements
are reasonable, undue reliance should not be placed on these statements, which
only apply as of the date of this news release, and no assurance can be given
that such events will occur in the disclosed time frames or at all. Accordingly,
readers should not place undue reliance on the Company’s forward-looking
statements.

Cautionary Note Regarding Non-GAAP Performance Measures
This document includes certain non-GAAP performance measures that do not have a
standardized meaning prescribed by International Financial Reporting Standards
(“IFRS”). These measures may differ from those used and may not be comparable
to such measures as reported by other issuers. The Company believes that these
measures are commonly used by certain investors, in conjunction with
conventional IFRS measures, to enhance their understanding of the Company’s
performance. These performance measures are intended to provide additional
information and should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These measures have
been derived from the Company’s financial statements and applied on a consistent
basis. The calculation and an explanation of these measures is provided in the
Company’s MD&A and such measures should be read in conjunction with the
Company’s financial statements.  
Copper Mountain Mining Corporation
Condensed Consolidated Statements of Financial Position
(In thousands of Canadian dollars)

March 31, 2022
$ December 31, 2021
$

Assets

Current assets
Cash and cash equivalents 143,501 171,902
Restricted cash 15,733 6,512
Accounts receivable and prepaid expenses 30,342 31,624
Inventory 32,542 32,635

222,118 242,673

Reclamation bonds and security deposits 4,832 5,783
Property, plant and equipment 754,891 710,583
Low grade stockpile 64,879 64,879

1,046,720 1,023,918
Liabilities

Current liabilities
Accounts payable and accrued liabilities 83,275 60,482
Current portion of lease liabilities 11,768 10,403
Current portion of long-term debt 12,496 12,678
Other financial liabilities 5,115 -
Taxes payable 2,015 2,143
114,669 85,706

Provisions and other liabilities 26,350 23,961
Lease liabilities 46,392 50,669
Long-term debt 281,590 284,829
Deferred tax liability 100,721 99,314
569,722 544,479

Equity
Attributable to shareholders of the Company:

Share capital 289,172 287,724
Contributed surplus 18,522 18,973
Accumulated other comprehensive loss (3,205) (3,929)
Retained earnings 62,638 68,940
367,127 371,708
Non-controlling interest 109,871 107,731
Total equity 476,998 479,439
1,046,720 1,023,918

Copper Mountain Mining Corporation
Condensed Consolidated Statements of Income and Comprehensive Income
(In thousands of Canadian dollars, except for number of and earnings per share)

2022
$ 2021
$
Revenue 93,858 162,207
Cost of sales (75,282) (65,927)
Gross profit 18,576 96,280

Other income and expenses
General and administration (6,892) (5,268)
Share based compensation (3,959) (5,959)
Operating income 7,725 85,053

Finance income 284 18
Finance expense (8,198) (2,931)
Foreign exchange gain 3,171 3,246
Unrealized loss on derivatives (5,115) -
(Loss) income before tax (2,133) 85,386

Current tax expense (621) (1,857)
Deferred income tax (expense) recovery (1,408) (31,411)
Net (loss) income (4,162) 52,118

Other comprehensive loss
Foreign currency translation adjustment 724 (1,161)
Comprehensive (loss) income (3,438) 50,957
Net (loss) income attributable to:
Shareholders of the Company (6,302) 36,652
Non-controlling interest 2,140 15,466
(4,162) 52,118
Income per share:
Basic $(0.03) $0.18
Diluted $(0.03) $0.17

Weighted average shares outstanding, basic 210,767,083 208,548,526
Weighted average shares outstanding, diluted 210,767,083 218,579,418
Shares outstanding at end of the period 211,250,049 208,760,399




Copper Mountain Mining Corporation
Condensed Consolidated Statements of Cash Flows
(In thousands of Canadian dollars)

2022
$ 2021
$
Cash flows from operating activities
Net (loss) income for the period (4,162) 52,118

Adjustments for:
Depreciation 5,646 7,784
Unrealized foreign exchange gain (2,562) (1,944)
Unrealized loss on derivatives 5,115 -
Deferred income tax expense 1,408 31,411
Finance expense 8,198 2,931
Share based compensation 3,959 5,959
17,602 98,259
Net changes in non-cash working capital items 15,712 (18,666)
Net cash provided by operating activities 33,314 79,593

Cash flows from investing activities
Deferred stripping activities (10,469) (8,041)
Development of property, plant and equipment (37,646) (15,735)
Reclamation bonds 953 (249)
Net cash used in investing activities (47,162) (24,025)

Cash flows from financing activities
Common shares issued on exercise of options 928 490
Contributions from non-controlling interest - 20,393
Loan principal repaid - (20,120)
Restricted cash (8,964) -
Interest paid (1,008) (1,067)
Finance lease payments (3,872) (2,705)
Net cash used in financing activities (12,916) (3,009)

Effect of foreign exchange rate changes on cash and cash
equivalents (1,637) (1,065)

(Decrease) increase in cash and cash equivalents (28,401) 51,494

Cash and cash equivalents - Beginning of period 171,902 85,571

Cash and cash equivalents - End of period 143,501 137,065

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560062_News Release #10. Q1-2022 Results VFINAL 04 26 2022.pdf