RE:RE:RE:RE:TD ReportEvent Copper Mountain reported its Q3/21 results.
The company will host a conference call today at 10:30 am ET (1-888-664-6383).
Impact: SLIGHTLY POSITIVE
Copper Mountain reported Q3/21 adjusted EPS of $0.20/sh., above our estimate and consensus of $0.14. The beat relative to our estimate was driven by slightly higher sales and lower depreciation and taxes. The company reported adjusted EBITDA of $77.1mm above consensus of $64.4mm and our estimate of $66.6mm.
Solid quarterly production results driven by grades - The company produced 22.4mmlbs of copper and 7.4koz of gold in the quarter, versus our estimates of 21.6mmlbs (+4%) and 8.0koz (-7%), respectively. The beat on copper production was driven by higher-than-anticipated head grades. Throughput and recoveries were largely in line with expectations. All-in sustaining costs in the quarter were US$1.77/lb which was below our estimate of US$1.91/lb, while all-in cost of US $2.17/lb were generally in line with TD (US$2.19/lb) on higher deferred stripping.
Operating cash flows were $90.9mm ($70.3mm before working capital adjustments). We calculate the company generated positive free cash of $51.8mm in the quarter after changes to working capital and total capex. The company continues to advance the installation of additional cleaner cell capacity and filter press capital planned for H1/2022.
Reaffirmed upward end of 2021 guidance of 90-to-100mmlbs copper. All-in costs are now expected to be at the top end of the 2021 guidance of US$1.80 to US$2.00/lb due to inflationary pressures on fuel and steel used in operations. As a reminder, the company expects grades to be lower in the fourth quarter as the mine transitions to lower grade ore from the Phase 2 pit.
Decision on Eva expected in Q4/21 - Eva continues to be advanced with basic engineering continuing in the quarter. The company expects to provide a final construction estimate in the fourth quarter ahead of a final construction decision