Copper Mountain announces second quarter 2013 results

            Copper Mountain announces second quarter 2013 results

PR Newswire

VANCOUVER, Aug. 12, 2013

This release should be read with the unaudited financial statements and
management's discussion and analysis available at www.cumtn.com and filed on
www.sedar.com. Our financial results are prepared in accordance with IFRS and
expressed in Canadian dollars, unless otherwise noted. Sales and production
volumes for the Company's 75%-owned Copper Mountain mine are presented on a
100% basis unless otherwise indicated.

Web Site: www.CuMtn.com
TSX: CUM

VANCOUVER, Aug. 12, 2013 /PRNewswire/ - Copper Mountain Mining Corporation
(TSX: CUM) (the "Company" or "Copper Mountain")  announces revenues of $45.7
million after pricing adjustments and treatment charges for the three months
ended June 30, 2013.

                 Second Quarter 2013 Highlights (100% Basis)
  *Revenues of $45.7 million for the quarter.
  *Copper concentrate shipments contained approximately 14.7 million pounds
    of copper, 5,600 ounces of gold, and 71,000 ounces of silver during the
    quarter.
  *Total production for the 2013 second quarter at Copper Mountain Mine (100%
    ) was 15.7 million pounds of copper, 5,600 ounces of gold and 71,000
    ounces of silver.
  *Mining activities continued at a steady rate of 171,000 tonnes per day
    moved during the second quarter of 2013.
  *Milling activities continued to improve - Operating time was 86.6% in the
    second quarter of 2013 (including 92.3% in June) as compared to 85.9% for
    the first quarter.
  *EBITDA^1 and Adjusted EBITDA^2 were ($3.0) million and $10.6 million
    respectively.
  *Adjusted loss^3 ^4 was $1.5 million or $0.01 per share for the quarter.
  *Site cash costs were US$1.81 per pound of copper produced net of precious
    metal credits.
  *Total costs were US$2.32 per pound of copper sold net of precious metal
    credits and after all off site charges.
  *Average realized copper price for the period US $3.18 per pound.

__________________________
^1EBITDA represents earnings before interest, income taxes and depreciation
^2Adjusted EBITDA removes unrealized gains/ losses on derivative instruments
and foreign exchange gains/ losses
^3Adjusted 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
^4Calculated based on weighted average number of shares outstanding under the
basic method based on earnings attributable to shareholders

Jim O'Rourke, President and CEO of Copper Mountain, remarked "although SAG
Mill throughput has challenged us longer than we anticipated following the
start-up period, we are confident that recently implemented modifications will
provide short term improvements while the longer term solutions are
implemented.. We are cash flow positive and we will be continuing to improve
the operation as we increase the amount of minus 2 inch ore in the SAG Mill
feed that will allow us to meet our production goals".

Mr. O'Rourke continued,"Looking forward, management's efforts are fully
focused on optimizing the mill operations which include finalizing the work
required to advance the installation of a permanent secondary crushing at the
mine site. Production scale tests completed with pre-crushed ore to the SAG
Mill have confirmed that by pre-crushing 100% of the ore to minus two inches
the concentrator can achieve throughput rates above the designed capacity of
35,000 tpd. The Copper Mountain board of directors have approved the
installation of a permanent SAG mill pre crusher and management is working
with the Company's partner and lenders to obtain their agreements to move
forward expeditiously"

Production during the quarter totaled 15.7 million pounds of copper, 5,600
ounces of gold, and 71,000 ounces of silver. Sales for the quarter were 14.7
million pounds of copper, 5,400 ounces of gold, and 66,000 ounces of silver,
generating an Adjusted EBITDA of $10.6 million for the quarter. Listed in the
table below is a summary of the financial results:

                           Summary Financial Results

                           Three months ended               Six months ended
                                         June 30,                       June 30,
(CDN$,                     2013            2012             2013            2012
except for                 $    (restated)              $    (restated)
cash cost                                     $                                $
data in US$)
                                                                  
Revenues          45,698,504    60,721,215    100,792,325   131,740,948
Gross profit     (1,634,959)    11,938,282      6,429,449    41,106,341
(loss)
Operating        (2,625,165)     9,906,729      3,684,334    37,604,995
income
(loss)
Adjusted           1,527,901    17,555,823      9,372,195    36,804,018
earnings
(loss)^5
Net Income      (12,083,649)   (2,169,540)   (14,355,559)    28,497,389
(loss)
Earnings        (14,766,979)   (2,079,811)   (17,041,754)    20,253,046
(loss)
attributable
to
shareholders
of the
Company
Adjusted                0.02          0.18           0.10          0.38
earnings
(loss) per
share^6
Earnings              (0.15)        (0.02)         (0.17)          0.21
(loss) per
share^7
EBITDA           (3,004,792)     6,965,749      4,456,917    46,597,506
Adjusted          10,606,758    26,691,112     28,184,671    54,904,135
EBITDA
                                                                  
Cash and           6,983,156    27,189,047      6,983,156    27,189,047
cash
equivalents
Working          (1,699,149)    34,010,148    (1,699,149)    34,010,148
capital
Equity           243,043,981   243,886,611    243,043,981   243,886,611
                                                                  
Copper            15,700,000    16,557,000     29,900,000    30,266,000
produced
(lbs)
Gold                   5,600         4,500         11,000         8,700
produced
(oz)
Silver                71,000       113,500        135,000       210,000
produced
(oz)
                                                                  
Copper sold       14,700,000    18,107,000     29,800,000    33,855,000
(lbs)
Gold sold              5,400         5,600         11,300        11,300
(oz)
Silver sold           66,000       124,000        135,000       248,500
(oz)
Site cash               1.81          1.24           1.72          1.23
costs per
pound of
copper
produced
(net of
gold, silver
credits)
(US$)
Total cash              2.32          1.89           2.25          1.81
costs per
pound of
copper sold
(net of
gold, silver
credits)
(US$)

______________________________
^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 unrealized foreign currency gains/losses.
^6 Calculated based on weighted average number of shares outstanding under the
basic method based on adjusted earnings.
^7 Calculated based on weighted average number of shares outstanding under the
basic method based on earnings attributable to shareholders.

Copper Mountain Mine

During the  quarter,  the company  completed  three shipments  of  concentrate 
containing approximately 14.7 million pounds  of copper to Japan for  smelting 
and recorded  revenues, net  of smelter  charges and  pricing adjustments,  of 
$45.7 million, realizing a gross loss of $1.6 million. The total cash cost of
copper sold for the three months ended June 30, 2013 was US$2.32 per pound  of 
copper after gold and silver by-product credits, up from $2.18 in the  earlier 
quarter as a result of low production during the quarter.

Mining activities continued in the Pit #3 and Pit#2 area during the  quarter. 
A total of 14.7  million tonnes of material  was mined, including 4.4  million 
tonnes of ore and 10.3  million tonnes of waste at  an average mining rate  of 
171,000 tonnes of per day  moved during the second  quarter of 2013. The  ore 
grade averaged 0.33%  Copper for  the second  quarter. Site  cash costs  were 
$1.81 per pound of copper after gold and silver by-product credits.

Mill improvements were achieved during the quarter, in spite of the mill
transformer loss time incident in mid-May that was fully repaired by early
June, a full week ahead of schedule. The repaired transformer had all three
sets of coils replaced and was fully inspected and certified as new prior to
being returned to operation with a one year warranty. The mine exited the
quarter on a positive note with the mill availability averaging 92.3% and
copper production of 6.1 million pounds for the month of June. Mine production
was 15.7 million pounds of copper, 5,600 ounces of gold, and 71,000 ounces of
silver during the three months of operations ended June 30, 2013. This
brought production for the six months to 29.9 million pounds of copper, 11,000
ounces of gold and 135,000 ounces of silver.

Plans for the mill operation for the balance of the year involve all available
methods to provide finer ore to the SAG Mill. Utilizing high energy blasting
will continue to maximize fragmentation of the ore, the contract portable
crusher will continue to provide about 4,500 tpd of minus 2 inch ore and a
newly acquired and installed portable crusher in July will provide up to 7,500
tpd of minus 2 inch SAG mill feed. These short term measures have had
positive results towards increasing mill throughput.

The Company ended the quarter with a working capital deficit of $1.7 million,
as compared with a working capital of $10.1 million at March 31, 2013. Cash
at the end of the quarter totaled $7.0 million as compared to $8.7 million at
the end of the previous quarter as a result timing of the last shipment of the
quarter which occurred on June 28, 2013. Subsequent to the end of the quarter
on July 7, 2013 the Company received $8.6 million for this shipment. In
addition, subsequent to the end of the quarter, the Company contributed in
kind $18.8 million of mining equipment that is being used by the Copper
Mountain Mine and was originally purchased in early 2012 for the mine, and
Mitsubishi Materials Corporation contributed an additional $6.3 million in
cash to the project to match their pro rata share of the Company's
contribution.

Listed below are a summarized income statement and balance sheet as well as
conference call in details:

Summarized Balance Sheet                                 
                                              June 30,   December 31,
                                                     2013             2012
                                                        $     (restated) $
Assets                                                              
Current assets                               47,461,461     60,528,061
Restricted cash                                       -      6,013,726
Deferred tax asset                            1,718,645      1,301,220
Reclamation bonds                             8,816,500      8,200,500
Property, plant and equipment               538,331,514    541,607,854
Low grade stockpile                          24,855,653     14,168,942
                                           621,183,773    631,820,303
Liabilities                                                         
Current liabilities                          49,160,610     49,851,807
Decommissioning and restoration provision     7,001,050      6,997,883
Interest rate swap liability                  7,209,752     10,980,888
Long-term debt                              312,318,817    304,178,343
Deferred tax liability                        2,449,563      2,754,880
                                           378,139,792    374,763,801
Equity                                                              
Share capital                               158,110,551    157,942,209
Contributed surplus                           9,643,976      9,469,280
Retained earnings (deficit)                     984,002     18,025,756
Non-controlling interest                     74,305,452     71,619,257
Total equity                                243,043,981    257,056,502
                                           621,183,773    631,820,303

                         Summarized Income Statement

                       Three months ended June       Six months
                                               30,              ended June 30,
                             2013          2012          2013          2012
                                   $     (restated             $     (restated
                                           note 3)                     note 3)
                                                 $                           $
                                                                        
Revenue                  45,698,504    60,721,215   100,792,325   131,740,948
Cost of sales          (47,333,463)  (48,782,933)  (94,362,876)  (90,634,607)
Gross profit (loss)     (1,634,959)    11,938,282     6,429,449    41,106,341
                                                                        
Other income and                                                         
expenses
   General and         (1,032,273)   (1,191,387)   (2,729,140)   (2,403,371)
    administration
   Share based              42,067     (840,166)      (15,975)   (1,097,975)
    compensation
Operating income        (2,625,165)     9,906,729     3,684,334    37,604,995
(loss)
                                                                        
Finance income                    736,696             945,775
                              85,943                     185,424
Finance expense         (2,203,677)   (2,464,922)   (4,302,996)   (4,309,435)
Unrealized gain                  (3,331,469)            (3,331,469)
(loss) on interest         2,264,371                   2,554,208
rate swap
Foreign exchange       (10,522,553)   (6,736,181)  (16,781,845)   (1,457,716)
(loss) gain
                                                            
Income (loss) before   (13,001,081)   (1,889,147)  (14,660,875)    29,452,150
tax
                                                                        
Current resource tax      (120,016)     (280,393)     (417,425)     (954,761)
recovery (expense)
Deferred income tax       1,037,448             -       722,741             -
recovery (expense)
                                                            
Net income (loss)      (12,083,649)   (2,169,540)  (14,355,559)    28,497,389
and comprehensive
income (loss)
                                                            
Net income (loss)                                                        
and comprehensive
income (loss)
attributable to:
   Shareholders of    (14,766,979)   (2,079,811)  (17,041,754)    20,523,046
    the Company
   Non-controlling       2,683,330      (89,729)     2,686,195     7,974,343
    interest
                      (12,083,649)   (2,169,540)  (14,355,559)    28,497,389
Earnings per share:                                                      
   Basic                    (0.15)        (0.02)        (0.17)          0.21
   Diluted                  (0.15)        (0.02)        (0.17)          0.20
                                                                        
Weighted average         98,617,849    98,504,421    98,617,849    98,492,963
shares outstanding,
basic and diluted
                                                            
Shares outstanding       98,619,427    98,505,377    98,619,427    98,505,377
at end of the period

   The full set of financial statements and accompanying MD&A are posted on
                                  Sedar.com.

Guidance Revision
Copper Mountain is now projecting 2013 production to be approximately 65 to 70
million pounds of copper, 28,000 to 30,000 ounces of gold, and 255,000 to
275,000 ounces of silver. The revised guidance is based on mining operations
continuing in both the Pit 2 and Pit 3 areas with more ore coming from the Pit
3 area and the mill operating at a rate of 32,000 tpd for the balance of
2013. Management believe that the steps taken, including the high powder
factor blasting that maximizes fragmentation, combined with the contractor
portable crusher and the newly acquired and installed portable crusher will
allow the mill to operate at or above the 32,000 tpd range in order to achieve
production targets.

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 new web page at www.CuMtn.com.

Copper Mountain will host a conference call on Monday, August 12th, 2013 at
10:30 a.m. Eastern Time (7:30 a.m. Pacific Time) to discuss the 2013 second
quarter results. The conference call may be accessed by dialing:

Live Dial-in information
Toronto and international:416-764-8609
North America (toll-free):888-390-0605
To participate in the webcast live via your computer go to:
http://www.newswire.ca/en/webcast/detail/1201005/1317021

Replay call information
Toronto and international:416-764-8677, passcode 921203
North America (toll-free): 888-390-0541, passcode 921203

The conference call replay will be available from 10:30 am (PST) on August
12th, 2013, until 11:59 pm PST on August 18th , 2013 Participant audio webcast
will also be available on the company's website http://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

Contact:

Galina Meleger, Corporate Communications 604-682-2992 ext.224
Email:Galina@CuMtn.com or
Rod Shier, Chief Financial Officer 604-682-2992 ext.222 Email:Rod@CuMtn.com

Website:www.CuMtn.com