Copper Mountain (ASX:C6C) share price rockets 8% on profit growth

The Copper Mountain share price is surging higher today after the company released its quarterly actitivies report, outlining huge profit growth. 

The Copper Mountain Mining Corporation CDI (ASX: C6C) share price surged higher today after the company released its quarterly activities report outlining huge profit growth. 

The Copper Mountain share price was up 8%, trading at $4.02 per share at the market close.

A mining worker wearing a hard hat, orange high vis vest, and blue long-sleeved shirt raises his fists in celebration with an excited expression on his face.

Image source: Getty Images

Copper Mountain's revenue increases

The Copper Mountain share price has more than doubled in 2021 alone, and its business performance shows why investors have been jumping on the bandwagon.

Copper Mountain posted record quarterly production in the first quarter of the calendar year 2021 of 30.4 million pounds of copper equivalent (comprised of 25.5 million pounds of copper, 8,187 ounces of gold, and 160,484 ounces of silver).

It also recorded quarterly revenue for Q1 2021, totalling $162.2 million, from the sale of 27.5 million pounds of copper, 8,553 ounces of gold and 161,657 ounces of silver, net of pricing adjustments.

It made a record gross profit of $96.3 million and net income of $52.1 million, resulting in earnings per share (EPS) of $0.18.

The company's cash and cash equivalents at the end of Q1 2021 was $137.1 million, up $100.9 million from the previous corresponding period. Cash flow from operations for Q1 2021 was $79.6 million.

After the quarter, Copper Mountain closed a US $250 million bond financing to refinance its existing debt, enabling the company to access 100% of the excess free cash flow from the mine.

Copper Mountain's history and market presence

Copper Mountain is a mid-tier copper-gold producing company that was incorporated on 20 April 2006. The company owns 75% of the Copper Mountain Mine in Canada through a subsidiary, and Mitsubishi owns the remaining 25%.

The Copper Mountain Mine is a conventional open-pit, truck and shovel operation located 20km south of Princeton in British Columbia and 300km east of the port of Vancouver. Production of copper concentrate started there in 2011. 

The Copper Mountain share price is listed on the ASX because the miner also owns the Eva Copper Project. This a permitted development-ready copper-gold project in Queensland, Australia and an extensive 210,000 hectare highly prospective land package within the Mount Isa area. 

Copper Mountain share price snapshot

The Copper Mountain share price has now gained 119% since the start of the year, is up 813% over the past 12 months. 

Motley Fool contributor Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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