children of an idle brain

CUM stains its quarter

Copper Mountain (CUM.to) is having a dirty sticky time in 2016, as shown by its 1q16 numbers out yesterday. Here’s the baseline operating financials and as you can see, costs swallow CUM of its revenues almost entirely, leaving just a puny trickle of gross profits.

Here’s copper production per quarter, which underscores how 19m lbs Cu isn’t going to win friends.The problem is grade, by the way.

And over at the balance sheet things are even worse, with CUM running a negative working cap of $13.9m as at end March. CUM liquidity is in a sorry state, it would seem CUM shot
itself out of treasury to the point where it had to borrow $5m just to
get by (monthly payroll, one presumes). With $5.9m to pay back from loans in 1q16 and another $5.3m in 3q16, it would seem somebody in finance will have to take CUM where they don’t want it.

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