Copper Mountain Mining (CMMC), a mining company exploring for gold, silver, and copper deposits, reported strong operating metrics and cash flows in the third quarter of 2021.
Copper Mountain had a quarterly production of 26.3 million pounds of copper equivalent (22.4 million pounds of copper, 7,449 ounces of gold, and 134,987 ounces of silver) in the three months ended September 30.
Meanwhile, C1 cash cost for the third quarter of 2021 was $1.50 per pound of copper produced.
Quarterly revenue for Q3 2021 came in at C$137.2 million (up 44.4% from Q3 2020) from the sale of 24.4 million pounds of copper, 8,308 ounces of gold and 142,128 ounces of silver, net of pricing adjustments.
Copper’s gross profit was C$66.6 million, while net income came in at C$25.8 million (C$0.08 per share) in the third quarter. Adjusted net income was C$41.4 million (C$0.20 per share), compared to C$15.1 million (C$0.08 per share) in the prior-year quarter. Cash flow from operations was C$90.9 million (C$0.43 per share).
Copper Mountain president and CEO Gil Clausen said, “In the third quarter, we completed the first step in our multi-tier growth plan with the successful installation of Ball Mill 3 at the Copper Mountain Mine. The next tier of growth is the Eva Copper Project, where project financing and basic engineering is progressing well.
“We also announced impressive drill results from our exploration program in the quarter at New Ingerbelle, where we doubled the vertical extent of mineralization, and at Cameron Copper, where we identified three large mineralized zones. We see exceptional exploration upside both in B.C. and in Australia and plan to continue to drill into 2022.”
Copper Mountain reaffirmed its revised upward production forecast for 2021 of 90 million to 100 million pounds of copper. The company expects to be at the top end of the 2021 AIC forecast of $1.80 to $2.00 per pound due to inflationary pressures on the costs of fuel and steel used in operations. (See Insiders’ Hot Stocks on TipRanks)
Three weeks ago, CIBC analyst Bryce Adams reiterated a Buy rating on CMMC with a price target of C$5.50. This implies 45.1% upside potential.
Overall, the consensus among Wall Street analysts is that CMMC is a Strong Buy based on four Buys. The average Copper Mountain Mining price target of C$4.81 implies upside potential of 26.9% to current levels.
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