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									                                                                                                            October 9, 2008




                                  Recommendation: SPECULATIVE BUY
COPPER MOUNTAIN MINING CORPORATION             12-Month Target: $4.40
(TSX-CUM $0.89)                        Risk Rating: ABOVE AVERAGE
CUMMIN’ ALONG                                               Sector:                 MINING, GOLD & PRECIOUS
                                                                                    MINERALS
Copper Mountain Mining Corporation continues
to advance its Copper Mountain Project (CMP).               Analyst:                PETER CAMPBELL, P. ENG.
Compared to many other development stage                    e-mail:                 peter.campbell@jenningscapital.com
                                                            Tel:                    (416) 304-3963 Fax: (416) 214-0177
projects, we rate the CMP as having a much lower
risk profile, due to the significant amount of              Associate: MARK TURNER, MBA
infrastructure already in place and for being fully         e-mail:                 mark.turner@jenningscapital.com
permitted. The positive feasibility study and the           Tel:                    (416) 304-3964 Fax: (416) 214-0177
financing and off-take MOU with Mitsubishi have           Company Statistics
further reduced project risk.                             Market Cap Basic                                                          $28.1 MM
                                                          Basic Shares O/S                                                           31.6 MM
 The catalyst for our re-valuation of Copper              Fully Diluted Shares O/S                                                   42.6 MM
                                                          Projected Fully Diluted Fully Financed Shares                              70.6 MM
 Mountain is the Memorandum of Understanding              52-Week Range                                                           $2.77-$0.78
 (MOU) recently completed with Mitsubishi                 Cash (06/30/2008)                                                         $18.0 MM
 Metals Corporation (MMC) for financing and               Working Capital (06/30/2008)                                              $16.5 MM
                                                          Operating Cost (LOM)                                   C$ 1.05 per lb. Cu Produced
 off-take.
                                                          Earnings and Valuation Summary (Fully Financed)
 MMC will purchase a 25% equity interest in                                                             2011E     2012E    2013E      2014E
                                                          FYE: Dec.31
 Copper Mountain's 100%-owned subsidiary,                 Copper Price Assumption US$ per lb.           $2.00     $2.00    $2.00    $2.00
 Similco Mines Limited, for C$28.75 MM, bring             EPS (FDFF) (C$)                               $0.39     $0.61    $0.41    $0.61
                                                          CFO PS (FDFF) (C$)                            $0.83     $1.05    $0.85    $1.04
 C$250 MM in project debt financing and
                                                          P/E (FDFF)                                      2.3x      1.5x     2.2x      1.5x
 receive 100% concentrate off-take!                       P/CFO (FDFF)                                    1.1x      0.8x     1.0x      0.9x
                                                          Project NAV10% to Similco J.V. Equity                                C$206.8 MM
 MMC's 25% equity purchase of Similco Mines               Project NAV10% to Copper Mtn. Equity                                 C$163.8 MM
 implies $3.46 per issued and outstanding share of        IRR to Copper Mtn. Equity                                                 23.6%
 Copper Mountain.                                         Fully Finaced NAV10% to
                                                            Copper Mtn. Equity                                                  C$260.9 MM
 Copper Mountain delivered a positive feasibility
 study this summer. It contained a modest 19%
 Capex increase to C$437 MM from C$366 MM.
 Ongoing exploration drilling successes in various
 zones within and adjacent to the proposed Super
 Pit will increase resources from feasibility levels.
 We expect an updated mineral resource
 estimate perhaps in Q4/08 or Q1/09.
 Copper Mountain has graduated to the TSX from
 the TSX Venture.
 To arrive at our target price, we continue to use
 US$2.00 Cu and a 10% discount rate.
                                                           Copper Mountain Mining Corporation is a Canadian junior
We continue to rate Copper Mountain Mining                 mining company engaged in the development and exploration of its
Corporation as a SPECULATIVE BUY with a 12-                100% owned Copper Mountain Project. This project is the former
month price target of $4.40 per fully diluted              Similco Mine, located near Princeton, British Columbia,
                                                           approximately 300 km from Vancouver. It is scheduled to be in
share.                                                     production by the end of 2010, is expected to produce over
                                                           100 million lbs of copper in concentrate annually, and has gold and
                                                           silver by-product credits.

                          Please see important disclosures on pages 10 and 11.
                                                                          2




CONTINUING TO DELIVER
Copper Mountain has continued to deliver on promises made prior to its last financing. Most recently, the
Company executed a Memorandum of Understanding (MOU) with Mitsubishi Metals Corporation (MMC)
that includes C$250 MM of debt financing, a 25% equity stake in the project and 100% concentrate off-
take.
While the spot and 3-month forward price for copper has significantly deteriorated over the short term, it
remains well above our long-term price forecast of US$2.00/lb in 2011 and thereafter, when we expect
the CMP to be in production. Further, we currently project Copper Mountain’s cost of production, net of
gold and silver by-product credits, to be US$1.05/lb life of mine (LOM), which represents a significant
operating margin to our copper price assumption.
At a time when the global capital markets are experiencing extreme volatility and industry analysts are
downgrading the shares of many mining companies, we are maintaining our price target on Copper
Mountain Mining Corporation at C$4.40 per share with a SPECULATIVE BUY rating. Under less
uncertain market conditions, we would have likely increased our target price due to the commensurate
reduction of financing risk inherent in the MMC MOU. Instead of reducing the discount rate in our NAV
model, we have maintained a 10% discount rate to reflect additional financing risk currently in the
marketplace, and we have incorporated more conservative equity financing assumptions in later years. A
more complete description of our valuation can be found below in our Valuation section.
Since our last research note, Copper Mountain has reported several significant accomplishments:
Project Advancement
        positive feasibility study delivered
        purchase of tailings facility closed
        financing and off-take arranged with Mitsubishi
Exploration Results
        high grade mineralization intersected beneath Pit 3
        near surface mineralization intersected to the north-west of Pit 2, now referred to as Copper King
        near surface mineralization intersected to the south-east of Pit 3, referred to as the Oriole Zone
Graduated to the TSX from the Venture Exchange.


FINANCING AND OFF-TAKE ARRANGED WITH MITSUBISHI
MMC has agreed to purchase a 25% equity stake in Copper Mountain’s wholly-owned subsidiary,
Similco Mines Limited, for C$28.75 MM. Similco’s only asset is the CMP. This values Copper Mountain
at approximately $115 MM or $3.64 per issued and outstanding share. Just as significantly, Mitsubishi
brings $250 MM of debt financing to the project, which we assume to be 100% of the debt
requirement (approximately 65% of initial Capex). Terms of the debt financing, such as the interest rate,
have not been announced.
According to the Company, Mitsubishi's debt and equity contribution is not specifically contingent on
Copper Mountain successfully raising its share of the equity. Both companies are proceeding on the
assumption that the final amount of equity will be raised. Both companies have verbally agreed that, if the
equity cannot be raised, they will then jointly examine other financing options at that time. Given that
Mitsubishi has already committed over $300 MM by way of the MOU and requires new concentrate feed


The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or
complete and it should not be relied on as such. Any opinions expressed herein reflect our judgment at this date and are subject to change. Jennings
Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such
securities. This report is not to be construed as an offer to sell or solicitation to buy securities. Member – CIPF. Jennings Capital (USA) Inc. is a
member of SIPC.
                                                                          3




to replace what will be lost when Imperial Metals Corporation’s (TSX:III) Huckleberry Mine closes in 2010,
we expect that MMC will back-stop this deal.
For its contribution to the project, MMC secures 100% of the concentrate off-take. Initial smelter
contract terms (TC/RC) are reported to be US$80/tonne concentrate and 8¢ per lb Cu. This is slightly
higher than the terms assumed in the recently released feasibility study of US$75/tonne concentrate and
US7.5¢ per lb Cu. While these terms are higher than those currently being negotiated, concentrate will
not be produced by the project until late 2010. Contract terms will be renegotiated after five years. On the
positive side of this contract, Copper Mountain will receive LME pricing for copper, likely 3-month
prices; however, these details are not yet fully disclosed.
Based on the somewhat limited details of the MOU, we have assumed the following financing scenario in
our new valuation model:
Our estimate for initial Capex of the project, including capitalized interest and an approximate
20% contingency, is C$475.7 MM:
           less C$250 MM in debt financing to be provide by MMC, and
           less C$75.4 MM in equipment financing provided by mine fleet manufacturer,
which leaves the equity financed component of the initial Capex at C$150.3 MM for the Similco joint
venture operating subsidiary. Copper Mountain’s share of this amount (75%) is $112.7 MM:
           less the C$28.75 MM that it will receive from MMC for its purchase of a 25% stake in Similco, and
           less C$9.0 MM in equity that it has already invested in the CMP project and is being considered
           as Copper Mountain equity contribution under the MOU,
Accordingly, by our estimates, there remains a Capex balance of C$75.0 MM to be equity financed
by Copper Mountain.
As with many development companies, the current market has moved against Copper Mountain’s share
price despite the very strong fundamentals of the project, its low risk profile and now the reduction of
financing risk with the participation of MMC. We have therefore adjusted our financing assumptions. In
our model, we now assume that Copper Mountain will raise this equity in two rounds at a share price of
$2.10 in 2010 and $3.50 in 2011.
Including MMC’s future equity contribution to project financing, its total commitment to the project is over
$300 MM.


FEASIBILITY STUDY
Copper Mountain delivered its final Feasibility Study (FS) in July 2008. The study was prepared by
Hatch Ltd. and is a follow-up to the Preliminary Assessment (PA) report by Merit International, filed last
November. Since the PA had recently been completed, we were not expecting any significant increase in
Capex, even though many other projects were suffering from this fate. The FS proved an increase in
Capex of 19% to C$437 MM from C$366 MM. These amounts included contingencies appropriate for
the level of the study. We believe that the increase was relatively modest due to the large amount of
infrastructure already in place on the project. Existing infrastructure includes paved road access to the
mine gate, town of Princeton located nearby, power on site, water pumping facilities and a permitted
tailings facility with adequate capacity for the projected life of the project.
There were a number of incremental pluses and minuses in the FS. The Capex increase, while being a
small negative, is mostly offset by higher recoveries for copper and gold. Copper recovery has
increased to 89% from 87% and gold recovery has increased to 65% from 55%. Another negative in

The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or
complete and it should not be relied on as such. Any opinions expressed herein reflect our judgment at this date and are subject to change. Jennings
Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such
securities. This report is not to be construed as an offer to sell or solicitation to buy securities. Member – CIPF. Jennings Capital (USA) Inc. is a
member of SIPC.
                                                                          4




the FS is an increased stripping ratio of 1.8:1 up from 1.5:1 in the PA. However, this is mostly offset by
more pounds of copper ultimately coming out of the mill. The higher strip ratio will mean that more low-
grade material will be sent to the low-grade stockpile and run through the mill at the end of mine life. In
total, there was no significant change to the project based on the FS.
It is important to note that none of the highly successful 2008 exploration drilling was included in
the FS. The Company expects to complete 50,000 metres of exploration diamond drilling this year, which
likely makes this program the largest drilling program in BC this year. We describe these exploration
successes in greater detail below. Upon completion of this year’s drilling program, we expect the
Company to prepare an updated resource estimate including the 2008 drilling program, perhaps in Q4/08.
Given what the Company has reported to date, we believe that as much as 30 to 50 MM tonnes of
incremental resources could be added.
Compared to many other development stage projects, we rate the CMP as having a much lower risk
profile due to the significant amount of infrastructure already in place and for being fully permitted.
All permits are in hand and only require operating amendments which is a routine part of the mining
business in British Columbia.


PURCHASE OF TAILINGS FACILITY
In August, Copper Mountain announced that it closed the purchase of the tailings management facility.
The facility is fully permitted and has adequate capacity to accommodate the current 15-year mine life of
the project. The purchase was subject to a letter of intent dating back to the acquisition of the project from
Compliance Energy. The purchase price for the tailings facility was set at that time at $5.2 MM, which
includes a $1.35 MM reclamation bond already in place. The purchase was settled with a cash payment
of $3.2 MM and a $2 MM mortgage due in one year.


ONGOING EXPLORATION SUCCESSES
For two years running, Copper Mountain has had the largest drilling program in BC. The Company drilled
44,000 metres in 2007 and expects to drill 50,000 metres in 2008. Both programs have been very
successful. The 2007 program upgraded resources to the proven and probable categories which was key
to the Company completing the feasibility study this summer. The Company has continued to discover
new mineralization in and around the proposed Super Pit. It is important to note that none of the 2008
exploration drilling has been included in the recently filed feasibility study. We expect Copper
Mountain to update its resource statement with the new drilling information by year’s end, which
could potentially add 30 to 50 MM tons in total resources.
Perhaps the most promising discovery is the Copper King zone to the north-east of the proposed
Super Pit. This zone is interesting because the grades are good, intersected lengths are long and depths
are shallow, which leads us to expect that the Super Pit could easily be expanded in this area. While we
believe that this is likely, it will take an update to the feasibility to provide certainty. Significant new
intersections in this zone included 250 ft grading 0.60% Cu Eq. and 390 ft grading 0.50% Cu Eq. The
higher grade core of the Copper King zone extends 1,300 ft to the west and is enclosed within a
mineralized area that extends 1,500 ft to the north. Mineralization in the Copper King zone remains open
to the north, west and at depth, and continued expansion will result in an enlargement of the proposed
Super Pit.
The following diagram shows current pit outlines, the proposed outline of the Super Pit and locations of
newly discovered mineralization from the 2008 exploration season.



The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or
complete and it should not be relied on as such. Any opinions expressed herein reflect our judgment at this date and are subject to change. Jennings
Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such
securities. This report is not to be construed as an offer to sell or solicitation to buy securities. Member – CIPF. Jennings Capital (USA) Inc. is a
member of SIPC.
                                                                          5




New Zones of Mineralization




Source: JCI

At the other end of the proposed Super Pit to the south-east lies the Oriole Zone. This zone was
previously known, but only explored for mineralization close to surface, by the previous operator. Drilling
on this zone, targeted with the aid of the Titan 24 survey completed in 2007, has indicated that its size is
much larger than originally believed. Twenty new holes have been completed in the Oriole Zone and
results from the first 10 have been reported. Notable drilling results from this zone include 210 ft grading
0.79% Cu Eq. and 131 ft grading 1.44% Cu Eq. (1.34% Cu). The drilling has expanded the zone to the
north, which could ultimately result in a southerly extension of the Super Pit by more than 1,000 ft.
Exploration drilling has also potentially expanded the size of Pit 3 at depth and to the east. The
most impressive result in this area is the high-grade intersection of 116 ft grading 1.15% Cu to the east of
Pit 3. The intersection begins at a hole depth of only 62 ft, while a deep hole into the Titan 24
chargeability anomaly beneath Pit 3 intersected 322 ft grading 1.31% Cu. The implication of these two
intersections together is that the deeper ore beneath the current limit of the Super Pit may now be more
accessible. A push-back in the east wall of Pit 3 that would be required to access the deeper
mineralization would now be largely done in mineralization and not waste. The Company expects to
continue drill testing of the deep chargeability anomaly beneath Pit 3 from the bottom of the pit.



The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or
complete and it should not be relied on as such. Any opinions expressed herein reflect our judgment at this date and are subject to change. Jennings
Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such
securities. This report is not to be construed as an offer to sell or solicitation to buy securities. Member – CIPF. Jennings Capital (USA) Inc. is a
member of SIPC.
                                                                          6




Finally, there could be the making of a new zone called the Mill Zone. Eight drill holes have been
completed in the Mill Zone, which is a flat-lying area located just to the east of Pit 2 that was once
considered as a site for the concentrator at the former mine. More recently, the Mill Zone was being
examined as a potential location to store waste rock, but the recent geophysical survey identified a
chargeability-high in this area. The new drill holes cover an area of approximately 1,000 ft by 1,000 ft. Drill
results suggest semi-continuous low to moderate grade mineralization throughout this area, which is near
surface and open in all directions. As a result, this area is no longer being considered for waste rock
storage, and resource definition drilling will be initiated later this year.
We believe that the 2008 exploration drill program has been very successful. The diagram above
indicates to us that the Super Pit is likely to grow and expand into the new areas defined by the new
drilling. The most obvious expansion potential is along the north-west and south-east axis. A second-level
expansion would be the East Wall push-back that would also provide easier access to the deep
mineralization beneath Pit 3. Finally, with more work in the Mill Zone, Pit 2 could potentially be expanded
to the north east to encompass this zone as well. Alternatively, the Mill Zone could end up being a
standalone pit.


VALUATION AND RECOMMENDATION
We continue to rate Copper Mountain Mining Corporation a SPECULATIVE BUY with a 12-month
price target of $4.40 per fully diluted share.
Having now released and filed the feasibility study, we have adjusted our assumptions and revised our
model to reflect the aforementioned changes and arrive at a fully diluted, fully financed (FDFF) NAV10% of
cash flow to equity of C$260.9 MM or C$5.39 per FDFF share.
Applying a 6.0x multiple to our CFO forecast (attributable to Copper Mountain) over the period of
2011-2014, discounting and applying equal weighting to each year, would suggest a target of
C$4.15 per FDFF share. Over 2011-2014 period, we anticipate mine production to ramp up and
repayment of initial Capex debt financing.
Applying a 10.0x multiple to our EPS forecast (attributable to Copper Mountain) over the same period,
discounted and applying equal weighting to each year, suggests a target of C$3.69 per FDFF share.
Weighting each valuation method equally, arithmetically we arrive at C$4.41 per FDFF share and
therefore maintain our 12-month target of C$4.40 per fully diluted share.
This target price valuation methodology is a departure from how we have determined our target price for
Copper Mountain in the past. Previous targets were based on the average of our NAV10% and in-situ
copper resource comparables. Having signed the MOU with Mitsubishi to obtain a large component of
the capital required to fund the project through to production, we believe Copper Mountain should no
longer be compared with resource stage companies on a per pound of in-situ copper basis. Rather,
Copper Mountain is now an emerging producer and will become valued in the market as such. An
updated comparables table has been provided to provide continuity with our previous methodology.
The following table summarizes some of the significant inputs and assumptions updated since our last
note, to account for information contained in the feasibility study as well as the implications of the MOU
and equity position of Mitsubishi.




The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or
complete and it should not be relied on as such. Any opinions expressed herein reflect our judgment at this date and are subject to change. Jennings
Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such
securities. This report is not to be construed as an offer to sell or solicitation to buy securities. Member – CIPF. Jennings Capital (USA) Inc. is a
member of SIPC.
                                                                          7




NAV Model Inputs and Assumptions

                                                                                  Input / Assumption
   Item                                                                      Current            Previous Note
   Production Rate                                                        35,000 tonnes/day    35,000 tonnes/day
   Initial Capital Cost (+ 20% contingency)                                    C$400.3 MM            C$396.5 MM
   Pit Equipment Lease                                                          C$75.4 MM      Included in above
   Sustaining CAPEX                                                        C$2.0 MM per yr      C$2.0 MM per yr
   2009 Equity Finance (Copper Mtn.'s Contribution)                     C$20.8 MM at $2.10 C$57.0 MM at $3.00
   2010 Equity Finance (Copper Mtn.'s Contribution)                     C$54.2 MM at $3.50 C$89.0 MM at $5.00
   Debt Financing of Capex (J.V. project)                               C$250.5 MM at 8.0% C$270.3 MM at 8.0%
   Commodity Prices                            Copper                       US$2.00 per lb        US$2.00 per lb
                                                 Gold                        US$900 per oz         US$900 per oz
                                                Silver                     US$16.00 per oz       US$16.00 per oz
   Recovery                                    Copper                                89.0%                 87.2%
                                                 Gold                                65.0%                 55.0%
                                                Silver                               49.0%                 55.0%
   C$ to US$ Exchange                                                                  0.96                  0.95
   Operating Cost (LOM) per lb. Cu net of by-products                              US$1.05              US$1.05

Source: JCI




The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or
complete and it should not be relied on as such. Any opinions expressed herein reflect our judgment at this date and are subject to change. Jennings
Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such
securities. This report is not to be construed as an offer to sell or solicitation to buy securities. Member – CIPF. Jennings Capital (USA) Inc. is a
member of SIPC.
                                                                                                                                                                            8



Projected Income Attributable to Copper Mountain Project (75% Copper Mountain, 25% Mitsubishi)
  Copper Mountain Mining Corporation
  Copper Mountain Project (75% Copper Mtn., 25% Mitsubishi)


                                                     2010          2011          2012         2013          2014          2015          2016          2017          2018            2019          2020          2021          2022         2023          2024         2025         2026         2027         2028        2029    2030
  Production
   Material Mined (tonnes)                      9,458,690     50,961,360   50,954,400    51,294,090   43,276,810    44,217,180    45,246,620    46,570,140    41,279,910    28,215,460      34,607,500    31,750,000    31,750,000    31,750,000   31,750,000     1,522,780
   Strip Ratio                                       14.0            2.3           2.4          2.4           1.8           1.7           0.9           0.7           1.2           0.8             1.2           1.5           1.5          1.5           1.5          0.5
   Waste Material (tonnes)                      8,827,690     35,424,360   35,834,400    36,163,090   27,875,810    27,594,180    21,923,620    19,336,140    22,256,910    12,712,460      18,732,500    19,050,000    19,050,000    19,050,000   19,050,000       500,780
   Ore Mined (tonne)                              631,000     15,537,000   15,120,000    15,131,000   15,401,000    16,623,000    23,323,000    27,234,000    19,023,000    15,503,000      15,875,000    12,700,000    12,700,000    12,700,000   12,700,000     1,022,000
     Stockpile - In (tonnes)                      631,000      2,827,000    2,384,000     2,385,000    2,690,000     3,916,000    10,619,000    14,528,000     6,323,000     2,802,000       3,173,000
     Stockpile - Out (tonnes)                                                                                                                                                                                                                                    11,681,000   12,701,000   12,701,000   12,701,000   2,493,000
   Ore Milled (tonnes)                                        12,710,000   12,736,000    12,746,000   12,711,000    12,707,000    12,704,000    12,706,000    12,700,000    12,701,000      12,702,000    12,700,000    12,700,000    12,700,000   12,700,000    12,703,000   12,701,000   12,701,000   12,701,000   2,493,000

   Contained Metal
    Cu Content (000s lbs)                                        112,083      131,967       109,590      117,696       126,064       112,030       100,843        97,995          109,204      103,612       103,595       103,595       103,595      103,595        56,011       53,202       53,202       53,202     10,443
    Au Content (oz)                                               68,651       68,791        68,845       68,656        68,635        68,618        68,629        68,597           68,602       68,608        68,597        68,597        68,597       68,597        68,613       68,602       68,602       68,602     13,466
    Ag Content (oz)                                            1,593,680    1,596,940     1,598,194    1,593,806     1,593,304     1,592,928     1,593,179     1,592,426        1,592,552    1,592,677     1,592,426     1,592,426     1,592,426    1,592,426     1,592,803    1,592,552    1,592,552    1,592,552    312,592

   Cu Concentrate
    Cu Recovery (%)                                              89.0%         89.0%        89.0%         89.0%         89.0%         89.0%         89.0%         89.0%           89.0%         89.0%         89.0%         89.0%        89.0%         89.0%        89.0%        89.0%        89.0%        89.0%       89.0%
    Cu Produced (000s lbs)                                       99,754       117,451       97,536       104,750       112,197        99,707        89,750        87,216          97,191        92,214        92,200        92,200       92,200        92,200       49,849       47,350       47,350       47,350       9,294
    Conc. Cu Grade (%)                                           27.0%         27.0%        27.0%         27.0%         27.0%         27.0%         27.0%         27.0%           27.0%         27.0%         27.0%         27.0%        27.0%         27.0%        27.0%        27.0%        27.0%        27.0%       27.0%
    Cu Conc. Produced (DMT)                                     167,584       197,314      163,857       175,977       188,487       167,505       150,778       146,520         163,278       154,917       154,893       154,893      154,893       154,893       83,746       79,546       79,546       79,546      15,614
    Cu lbs per DMT Cu Conc.                                         595           595          595           595           595           595           595           595             595           595           595           595          595           595          595          595          595          595         595

     Au Recovery (%)                                             65.0%         65.0%        65.0%         65.0%         65.0%         65.0%         65.0%         65.0%           65.0%         65.0%         65.0%         65.0%        65.0%         65.0%        65.0%        65.0%        65.0%        65.0%        65.0%
     Au Produced (oz)                                            44,623        44,714       44,749        44,627        44,613        44,602        44,609        44,588          44,591        44,595        44,588        44,588       44,588        44,588       44,598       44,591       44,591       44,591        8,753
     Au oz per DMT Cu Conc.                                       0.266         0.227        0.273         0.254         0.237         0.266         0.296         0.304           0.273         0.288         0.288         0.288        0.288         0.288        0.533        0.561        0.561        0.561        0.561

     Ag Recovery (%)                                             49.0%         49.0%        49.0%         49.0%         49.0%         49.0%         49.0%         49.0%           49.0%         49.0%         49.0%         49.0%        49.0%         49.0%        49.0%        49.0%        49.0%        49.0%       49.0%
     Ag Produced (oz)                                           780,903       782,501      783,115       780,965       780,719       780,535       780,658       780,289         780,350       780,412       780,289       780,289      780,289       780,289      780,473      780,350      780,350      780,350     153,170
     Ag oz per DMT Cu Conc.                                       4.660         3.966        4.779         4.438         4.142         4.660         5.178         5.325           4.779         5.038         5.038         5.038        5.038         5.038        9.320        9.810        9.810        9.810       9.810

  Revenue
     Cu Price (US$/lb)                                              2.00         2.00          2.00         2.00          2.00          2.00          2.00          2.00             2.00         2.00          2.00          2.00          2.00         2.00          2.00         2.00         2.00         2.00        2.00
     Cu Gross Value in Conc. (US$/DMT)                          1,190.50     1,190.50      1,190.50     1,190.50      1,190.50      1,190.50      1,190.50      1,190.50         1,190.50     1,190.50      1,190.50      1,190.50      1,190.50     1,190.50      1,190.50     1,190.50     1,190.50     1,190.50    1,190.50
      Deduction - 1 Unit                                           44.09        44.09         44.09        44.09         44.09         44.09         44.09         44.09            44.09        44.09         44.09         44.09         44.09        44.09         44.09        44.09        44.09        44.09       44.09
      Treatment Charge (USD/DMT)                                   80.00        80.00         80.00        80.00         80.00         80.00         80.00         80.00            80.00        80.00         80.00         80.00         80.00        80.00         80.00        80.00        80.00        80.00       80.00
      Refining Charge (USD/DMT)                                    45.86        45.86         45.86        45.86         45.86         45.86         45.86         45.86            45.86        45.86         45.86         45.86         45.86        45.86         45.86        45.86        45.86        45.86       45.86
     Cu Net Invoice Amount (US$ 000s)                           171,027       201,368      167,224       179,593      192,360        170,946      153,876        149,531         166,633       158,101      158,076        158,076      158,076      158,076         85,466       81,180       81,180       81,180      15,934

     Au Price (US$/oz)                                           900.00        900.00       900.00        900.00        900.00        900.00        900.00        900.00          900.00        900.00        900.00        900.00       900.00        900.00       900.00       900.00       900.00       900.00      900.00
     Au Gross Value in Conc. (US$/DMT)                           239.65        203.95       245.79        228.23        213.02        239.65        266.27        273.88          245.79        259.08        259.08        259.08       259.08        259.08       479.29       504.52       504.52       504.52      504.52
      Deduction - 5%                                               0.01          0.01         0.01          0.01          0.01          0.01          0.01          0.02            0.01          0.01          0.01          0.01         0.01          0.01         0.03         0.03         0.03         0.03        0.03
      Refining and Treatment Charge                                1.60          1.36         1.64          1.52          1.42          1.60          1.78          1.83            1.64          1.73          1.73          1.73         1.73          1.73         3.20         3.36         3.36         3.36        3.36
     Au Net Invoice Amount (US$ 000s)                            39,891        39,972       40,004        39,894        39,881        39,872        39,878        39,859          39,863        39,866        39,859        39,859       39,859        39,859       39,869       39,863       39,863       39,863       7,824

     Ag Price (US$/oz)                                            16.00         16.00        16.00         16.00         16.00         16.00         16.00         16.00           16.00         16.00         16.00         16.00        16.00         16.00        16.00        16.00        16.00        16.00       16.00
     Ag Gross Value in Conc. (US$/DMT)                            74.56         63.45        76.47         71.01         66.27         74.56         82.84         85.21           76.47         80.60         80.60         80.60        80.60         80.60       149.11       156.96       156.96       156.96      156.96
      Deduction - 10%                                              0.47          0.40         0.48          0.44          0.41          0.47          0.52          0.53            0.48          0.50          0.50          0.50         0.50          0.50         0.93         0.98         0.98         0.98        0.98
      Refining and Treatment Charge                                2.10          1.78         2.15          2.00          1.86          2.10          2.33          2.40            2.15          2.27          2.27          2.27         2.27          2.27         4.19         4.41         4.41         4.41        4.41
     Ag Net Invoice Amount (US$ 000s)                            12,065        12,090       12,099        12,066        12,062        12,059        12,061        12,055          12,056        12,057        12,055        12,055       12,055        12,055       12,058       12,056       12,056       12,056       2,366

   Total Net Invoice Amount (US$M)                               222.98        253.43       219.33        231.55        244.30        222.88        205.82        201.45          218.55        210.02        209.99        209.99       209.99        209.99       137.39       133.10       133.10       133.10       26.13
   C$/US$ Exchange                                                 0.96          0.96         0.96          0.96          0.96          0.96          0.96          0.96            0.96          0.96          0.96          0.96         0.96          0.96         0.96         0.96         0.96         0.96        0.96
   Net Smelter Return (C$M)                                      231.79        263.44       227.99        240.70        253.95        231.68        213.95        209.40          227.19        218.32        218.29        218.29       218.29        218.29       142.82       138.36       138.36       138.36       27.16

   Transportation Cost (C$M)                                      18.56         21.86        18.15         19.49         20.88         18.56         16.70         16.23           18.09         17.16         17.16         17.16        17.16         17.16         9.28         8.81         8.81         8.81        1.73
   Net Sales Revenue (C$M)                                       213.23        241.58       209.84        221.21        233.07        213.13        197.24        193.17          209.10        201.16        201.13        201.13       201.13        201.13       133.54       129.55       129.55       129.55       25.43

  Operating Costs (C$M)
   Mining                                                         61.15        61.15         61.55        51.93         53.06         54.30         55.88         49.54            33.86        41.53         38.10         38.10         38.10        38.10         10.35         9.27         9.27         9.27        1.82
   Processing                                                     39.02        39.10         39.13        39.02         39.01         39.00         39.01         38.99            38.99        39.00         38.99         38.99         38.99        38.99         39.00        38.99        38.99        38.99        7.65
   G&A                                                             5.85         5.86          5.86         5.85          5.85          5.84          5.84          5.84             5.84         5.84          5.84          5.84          5.84         5.84          5.84         5.84         5.84         5.84        1.15
   Offsite Costs                                                   2.12         2.12          2.13         1.94          1.96          1.98          2.01          1.89             1.57         1.73          1.66          1.66          1.66         1.66          1.10         1.08         1.08         1.08        0.21
  EBITDA                                                         105.09       133.36        101.16       122.47        133.20        112.00         94.49         96.92           128.83       113.06        116.54        116.54        116.54       116.54         77.24        74.36        74.36        74.36       14.60

  Depreciation                                                    38.68        38.68         38.68        38.68         38.68         38.68         38.68         38.68            38.68        38.68         38.68         38.68         38.68        38.68         38.68         9.42         9.42         9.42        9.42
  EBIT                                                            66.41        94.68         62.48        83.79         94.52         73.32         55.81         58.24            90.15        74.39         77.86         77.86         77.86        77.86         38.57        64.93        64.93        64.93        5.17

  Interest                                                        17.84        12.64          7.24         2.42          (0.00)        (0.00)        (0.00)        (0.00)          (0.00)        (0.00)        (0.00)        (0.00)       (0.00)        (0.00)       (0.00)       (0.00)       (0.00)       (0.00)      (0.00)

  Income Taxes Owing                                              14.12        27.90         18.79        27.67         32.15         24.94         18.98         19.81            30.66        25.30         26.48         26.48         26.48        26.48         13.12        22.08        22.08        22.08        1.76

  Net Income (C$M)                                                34.45        54.14         36.45        53.69         62.37         48.39         36.83         38.43            59.49        49.09         51.38         51.38         51.38        51.38         25.45        42.85        42.85        42.85        3.41




Source: JCI

The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or complete and it should not be relied on as such. Any opinions expressed herein
reflect our judgment at this date and are subject to change. Jennings Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such securities. This
report is not to be construed as an offer to sell or solicitation to buy securities. Member – CIPF. Jennings Capital (USA) Inc. is a member of SIPC.
                                                                                                                   9




Comparable In-situ Copper Table

   10/6/2008                                                                                                   50-Day Average                          MC$ per Attrib. EV$ per Attrib.                 Attrib.
                                                                                                      Share Price     MC                    EV          Eq. Cu lbs       Eq. Cu lbs                   Cu Eq.        Percentage
   Symbol      Exchange            Company                                       Location                (C$)      (C$ MM)               (C$ MM)            (C$)            (C$)                     (MM lbs)       Cu of Cu Eq.
   DNT         TSX                 Candente Resource Corp.                       Peru                    0.76        62.85                 48.95          0.0082          0.0064                     8,746.8           87.6%
   WRN         TSX                 Western Copper Corp.                          Canada/B.C.             1.00        74.03                 55.50          0.0090          0.0067                     17,027.2          48.5%
   NOM         TSX                 Norsemont Mining Inc.                         Peru                    3.00       160.97                148.87          0.0406          0.0376                      5,270.1          75.2%
   SRY         TSX                 Stingray Copper Inc.                          Mexico                  0.46        27.44                 8.62           0.0127          0.0040                     2,164.9          100.0%
   IPR         TSXV                Inca Pacific Resources Inc.                   Peru                    0.94        54.61                 27.74          0.0190          0.0097                      5,069.5          56.6%
   CHD         TSX                 Chariot Resources Ltd.                        Peru                    0.46       156.96                131.85          0.0332          0.0279                      4,726.9         100.0%
   TRX         TSXV                Terrane Metals Corp.                          Canada/B.C.             0.31        36.33                144.00          0.0094          0.0372                      7,943.8          48.8%
   TKO         TSX                 Taseko Mines Ltd.                             Canada/B.C.             2.75       403.11                415.95          0.0347          0.0358                     20,360.5          57.1%
   MNA         LSE                 Monterrico Metals PLC                         Peru                   128.01       65.95                 73.61          0.0042          0.0047                     21,212.1          73.9%
   AZC         TSX                 Augusta Resource Corp.                        U.S./Arizona            4.91       440.92                441.05          0.0696          0.0696                     6,885.4           92.0%
   Arithmetic Average                                                                                                                                      0.0241          0.0239
   CUM             TSX             Copper Mountain Mining Corp.                  Canada/B.C.               1.27            38.92           34.72            0.0107                0.0093             3,648.7            100.0%

   Metal           Price Assumption
   Gold            900.00          US$/oz
   Silver          16.00           US$/oz
   Copper          2.00            US$/lb
   Lead            0.45            US$/lb
   Zinc            75.00           US¢/lb
   Nickel          9.00            US$/lb
   Moly            17.50           US$/lb



Source: JCI; Metals Economics Group




The information contained in this report was obtained from sources we believe to be reliable. We do not represent that such information is accurate or complete and it should not be relied on as such. Any opinions expressed herein
reflect our judgment at this date and are subject to change. Jennings Capital Inc. and/or employees from time to time may hold shares, options or warrants on any issue included in this report and may buy or sell such securities. This
report is not to be construed as an offer to sell or solicitation to buy securities. Member – CIPF. Jennings Capital (USA) Inc. is a member of SIPC.
                                                                               10

                                                 Jennings Capital Inc. Research Disclosures
                                           Company                                         Ticker
                                           Copper Mountain Mining Corporation              TSX-CUM
I, Peter Campbell, hereby certify that the views expressed in this report accurately reflect my personal views about the subject securities or issuers. I
also certify that I have not, am not, and will not receive, directly or indirectly, compensation in exchange for expressing the specific recommendations or
views in this report.
Note: We initiated coverage on Copper Mountain Mining Corporation on April 4, 2008 with a SPECULATIVE BUY recommendation, an ABOVE
AVERAGE risk rating and a target price of C$4.40 per share. Share price at that time was $1.90.

                                                                    U.S. Client Disclosures


This research report was prepared by Jennings Capital Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian
Investor Protection Fund and a Participating Organization of the Toronto Stock Exchange and the TSX Venture Exchange. Jennings Capital Inc. is an
affiliate of Jennings Capital (USA) Inc. Jennings Capital (USA) Inc. accepts responsibility for the contents of this research report, subject to the terms
and limitations as set out above. Jennings Capital (USA) Inc. is a registered broker-dealer with the Securities and Exchange Commission and a member
of the National Association of Securities Dealers Inc.

THE FIRM THAT PREPARED THIS REPORT MAY NOT BE SUBJECT TO U.S. RULES WITH REGARD TO THE PREPARATION OF RESEARCH
REPORTS AND THE INDEPENDENCE OF ANALYSTS.

This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein. Any transaction in these
securities by U.S. persons must be effected through either Westminster Securities Corporation, a U.S. broker-dealer registered with the Securities and
Exchange Commission and a member of the National Association of Securities Dealers Inc. and the New York Stock Exchange Inc. or through Jennings
Capital (USA) Inc., A U.S. broker-dealer registered with the Securities and Exchange Commission and a member of the National Association of
Securities Dealers Inc.

U.S. PERSONS
This research report was prepared by an affiliate of Jennings Capital (USA) Inc. or other person that may not be registered as a broker-dealer in the
United States. The firm that prepared this report may not be subject to U.S. rules regarding the preparation of research reports and the independence of
research analysts.

Subject to the limitations on liability described above, Jennings Capital (USA) Inc. takes responsibility for the content of this research report in
accordance with Rule 15a-6 under the U.S. Securities Exchange Act of 1934, as amended. All transactions by U.S. persons in securities discussed in
this report must be performed through Jennings Capital (USA) Inc.


                                                                   U.K. Client Disclosures


This research report was prepared by Jennings Capital Inc., a member of the Investment Industry Regulatory Organization of Canada and the Canadian
Investor Protection Fund and a Participating Organization of the Toronto Stock Exchange and the TSX Venture Exchange.

JENNINGS CAPITAL IS NOT SUBJECT TO U.K. RULES WITH REGARD TO THE PREPARATION OF RESEARCH REPORTS AND THE
INDEPENDENCE OF ANALYSTS.

The contents hereof are intended solely for the use of, and may only be issued or passed on to persons described in part VI of the Financial Services
and Markets Act 2000 (Financial Promotion) Order 2001.

This report does not constitute an offer to sell or the solicitation of an offer to buy any of the securities discussed herein.


                                                                        Stock Ratings
Speculative Buy: The stock is expected to provide a total return in excess of 10% over the current trading price over the next 12 months; however,
there is material event risk associated with the investment.
Buy: The stock is expected to provide a total return in excess of 10% over the current trading price over the next 12 months.
Hold: The stock is expected to provide a total return of 0% to 10% over the current trading price over the next 12 months.
Sell: The stock is expected to provide a negative total return over the next 12 months.
                                                                         Risk Ratings
Low/Average Risk — Stocks with less volatility than the market as a whole, with solid balance sheets and dependable earnings.
Above Average Risk — Stocks with more volatility than the market. Financial leverage is considerable but not threatening, earnings are more erratic,
or other quality concerns regarding accounting, management track record, and similar issues.
Speculative — Stocks of unproven companies or ones with very high financial leverage, suspicious accounting, or with other significant quality
concerns. A speculative risk rating implies at least the possibility of financial distress leading to a restructuring.
Distribution Ratings: Out of approximately 61 stocks in the Jennings Capital Inc. coverage universe, the ratings distribution is as follows:
                                                                                       11

                                                                      BUY                           39%
                                                                      SPECULATIVE BUY               57%
                                                                      HOLD                              0%
                                                                      RESTRICTED                        0%
                                                                      UNDER REVIEW                      0%
                                                                      SELL                              3%
                                                                              Revised Monthly

Security Abbreviations: NVS (non-voting shares); RVS (restricted voting shares); RS (restricted shares); SVS (subordinate voting shares); MV
(multiple voting shares).
Quarterly Recommendation Hierarchy: Is a ranking distribution identifying the percentage of total, number, and the investment banking relationship
(%) for all recommendation categories that can be found on the Jennings Capital Inc. website (www.JenningsCapital.com).
Analyst Stock Holdings: Equity Research analysts, associates and members of their households are permitted to invest in securities covered by
them. No Jennings Capital Inc. analyst, associate or employee involved in the preparation of an analyst report is permitted to effect a trade in the
security of an issuer whereby there is an outstanding recommendation for a period of 30 calendar days before and 5 calendar days after issuance of
the research report
Compensation: The compensation of the analyst and/or associate who prepared this research report is based upon in part, the overall revenues and
profitability of Jennings Capital Inc. Analysts are compensated on a salary and bonus system. Some factors affecting compensation including the
productivity and quality of research, support to institutional, retail and investment bankers, net revenues to the equity and investment banking revenue
as well as compensation levels for analysts at competing brokerage dealers. Analysts are not directly compensated for specific Investment Banking
transactions.
Jennings Capital Inc. Relationships: Jennings Capital Inc. may receive or seek compensation for investment banking services from all issuers under
research coverage within the next 3 months.
Jennings Capital Inc. or its officers, employees or affiliates may execute transactions in securities mentioned in this report that may not be consistent
with the report’s conclusions.

                                                                   Company Specific Disclosures
Is this an issuer related or industry related publication?                                                      Issuer                Industry


Does the Analyst or any member of the Analyst’s household have a financial interest in the securities           Yes                  No
of the subject issuer? If yes, nature of interest:


Is Jennings Capital Inc. or Jennings Capital (USA) Inc. a market maker in the issuer’s securities               Yes                  No
at the date of this report?


Do Jennings Capital Inc., Jennings Capital (USA) Inc. and their affiliates in the aggregate                     Yes                  No
beneficially own more than 1% of any class of common equity of the issuer?


Does Jennings Capital Inc., Jennings Capital (USA) Inc. or the Analyst have any actual material conflicts       Yes                  No
of interest with the issuer? Explanation:


Does the Analyst or household member serve as a Director or Officer or Advisory Board Member of                 Yes                  No
the issuer?


Has the Analyst received any compensation from the subject company in the past 12 months?                       Yes                  No


Has Jennings Capital Inc., Jennings Capital (USA) Inc. and/or any affiliates managed or                         Yes                  No
co-managed an offering of securities by the issuer in the past 12 months?


Has Jennings Capital Inc., Jennings Capital (USA) Inc. and/or any affiliates received compensation for          Yes                  No
investment banking and related services from the issuer in the past 12 months?

Has the Analyst had an onsite visit with the Issuer?                                                            Yes                  No
(The extent to which the analyst has viewed the material operations is available on request)

Has the Analyst ever been compensated for travel expenses incurred as a result of an onsite visit with
an Issuer?                                                                                                      Yes                  No

								
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