Copper Mountain posts $31.5M Q4 profit. A metal stock to buy?

3 min read | February 15, 2022 02:04 AM AEDT | By Raza Naqvi

Copper Mountain posts $31.5M Q4 profit. A metal stock to buy? — Image source: © Phongphan5922 | Megapixl.com

Financial performance of Copper Mountain in Q4

Copper Mountain produced 16.7 million pounds of copper, 80,377 ounces of silver, and 5,472 ounces of gold in the fourth quarter of the previous year.

Compared with the fourth quarter of 2020, the production was down and could be due to extreme weather conditions. In Q4 2020, the mineral exploration company produced 23.1 million pounds of copper, 144,934 ounces of silver, and 8,959 ounces of gold.

In Q4 2021, the revenue jumped to C$ 136.8 million from C$ 106.1 million in Q4 2020. In addition, the gross profit climbed to C$ 74.4 million in the last quarter of 2021.

Notably, the adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) significantly increased to C$ 59.5 million in comparison to C$ 34.2 million in Q4 2020.

Bottom line

It appears that Copper Mountain is expanding business operations in the fourth quarter. The company commissioned Ball Mill 3, the project expected to increase mill throughput to 45,000 tonnes per day.

Also Read: 2 Canadian precious metal stocks to uplift your portfolio

In 2022, the company expects its copper production to be between 80 to 90 million pounds. Meanwhile, the gold production could be between 18,000-25,000 ounces, and silver production to be around 315,000 to 335,000 ounces.

Please note, the above content constitutes a very preliminary observation or view based on industry and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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