Copper Mountain Mining (TSX:CMMC), a Canadian mining company, has reported a strong year ahead with a substantial increase in production. The company’s flagship operation in southern British Columbia has achieved plant optimization and boosted the mineral reserve base, leading to the optimistic forecast.
In the full-year results released on Monday, Copper Mountain Mining projected copper production to reach between 88 million and 99 million pounds in 2023. This represents a significant improvement over the 52.9 million pounds of copper produced in 2022, which fell short of the company’s revised guidance of 55 million to 60 million pounds.
The lower-than-expected output coupled with high costs resulted in a net loss from continuing operations of C$58.9 million and an adjusted net loss of C$48 million for 2022. However, Copper Mountain Mining is confident that it has turned a corner and is poised for growth.
The company’s full-year 2022 C1 cash cost per pound of copper produced was $3.53, while all-in sustaining costs (AISC) per pound of copper was $4.20 and AISC per pound of copper was $4.78. Despite these costs, Copper Mountain Mining believes that the improvements it has made to its flagship operation will lead to greater efficiency and profitability in the years to come.
With copper prices on the rise and a strong demand for the metal in a variety of industries, Copper Mountain Mining’s optimistic forecast comes at an opportune time. The company is set to benefit from lower costs and increased production this year. The company has reported that its production is on track with its budget for 2023, with costs expected to be materially lower thanks to higher production and shorter haul distances.
Following the completion of plant improvement projects in 2022, Copper Mountain Mining expects mill throughput to be higher this year, averaging 45,000 tonnes per day, with recoveries expected to average approximately 84%. The company is forecasting an increase in production and grade, with the third quarter expected to be the strongest of the year. Mill feed is expected to come mainly from the higher-grade Phase 4 area and the North Pit.
Copper Mountain Mining is not only expecting to increase its copper production this year, but it also forecasts gold production to be between 20,000 and 30,000 ounces, and silver production between 350,000 and 400,000 ounces. This diversification of its metal portfolio is likely to provide the company with a more stable source of revenue.