Copper Mountain announces 2012 year end results

Summary Financial Results

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⁵ Adjusted earnings (loss) and adjusted earnings (loss) per share are non-GAAP financial measures which remove unrealized gains/losses on interest rate swaps and foreign currency gains/losses.
⁶ Calculated based on weighted average number of shares outstanding under the basic method

Copper Mountain Mine

The Copper Mountain Mine produced 57 million pounds of copper, 18,900 ounces of gold, and 354,000 ounces of silver which generated $229 million in revenue net of pricing adjustments for the year ended December 31, 2012.  The total cash cost of copper sold for the year ended December 31, 2012 was US$2.32 per pound of copper after gold and silver by-product credits.

Mining activities continued in the Pit #3 area at the beginning of 2012 with the push-backs on the eastern wall.  Part way through the year, the Company relocated two of the production shovels from the Pit#3 area to the Pit #2 area for the commencement of mining activities there. During the year a total of 54.9 million tonnes of material was mined, including 12.5 million tonnes of ore and 42.5 million tonnes of waste during the year, resulting in approximately a 3.4 to 1 waste to ore strip ratio.  The mine exited 2012 with an average mining rate of 186,250 tonnes of per day moved during December 2012.

Mill production was adversely affected during the year by greater than expected tailings line wear, failure of the ball mills motor controls, a lack of clear reclaim water in the tailings management facility, and the premature breakage of SAG mill grates. Following the planned mill maintenance shutdowns throughout the year, the Company was able to resolve all of these issues by year end, and in early 2013 the mill achieved for the first time a 93.3% plant availability, compared to a budgeted 92% availability.

However, the mill is still experiencing challenges meeting its tonnage throughput goals as a result of the variability in ore hardness and fragmentation entering the SAG Mill from various open pit locations.  Management has engaged an engineering firm to review the option of adding a secondary crusher to pre-crush ore entering the SAG Mill to increase the tonnage throughput. Preliminary designs for this secondary crusher involves ore conveyed from the coarse ore stock pile to the new crushing facility where it would be crushed to 50% minus one inch.  Initial estimates indicate the pre-crushing would result in an expansion to the grinding capacity and will ensure the mill meets the original design capacity with potential to increase the grinding capacity of the SAG to the 40,000 tonnes per day range.  Preliminary work estimates that the crushing facility would cost approximately $40 million and would be funded out of cash flow or additional debt.  It is estimated that the new crushing facility could be in place by the end of the year subject to necessary approval to proceed before the end of April 2013. Concurrent with the secondary crusher evaluation, the mine is testing various blasting techniques to improve fragmentation.  To date increased blasting has proven to be positive.

During the year, the Company completed a total of thirteen shipments containing approximately 59.1 million pounds of copper, 19,900 ounces of gold, and 402,000 ounces of silver which generated $229.5 million in revenue net of pricing adjustments.  Summarized income statement and balance sheet are provided below.

The full set of financial statements and accompanying MD&A are posted on Sedar.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 Company has a strategic alliance with Mitsubishi Materials Corporation who owns the remaining 25%. The Copper Mountain mine commenced production in the summer of 2011, and has continued to improve its operations during the year; and attained design capacity in the summer of 2012. The 18,000 acre site has a resource of approximately 5 billion pounds of copper and remains open laterally and at depth. The mine has significant exploration potential that will need to be explored over the next few years to fully appreciate the properties full development potential.  Additional information is available on the Company's web page at www.CuMtn.com.

On behalf of the Board of
COPPER MOUNTAIN MINING CORPORATION

"Rod Shier" 

Rodney A. Shier, CA.
Chief Financial Officer

Note:  This release contains forward-looking statements that involve risks and uncertainties.  These statements may differ materially from actual future events or results.  Readers are referred to the documents, filed by the Company on SEDAR at www.sedar.com, specifically the most recent reports which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.  The Company undertakes no obligation to review or confirm analysts' expectations or estimates or to release publicly any revisions to any forward-looking statement.

SOURCE Copper Mountain Mining Corporation