Good morning. My name is Kelly, and I will be your conference operator today. At this time, I would like to welcome everyone to the Copper Mountain Mining Corporation First Quarter 2017 Earnings Conference Call. All lines have been placed on mute to avoid any background noise. After the speakers remarks there will be a question and answer session. [Operator Instructions]. Thank you, Rod Shier, Chief Financial Officer of Copper Mountain Mining Corporation, you may begin your conference.

Thank you, Kelly. After opening remarks by management in which we will review the business and operational results for the 2017 first quarter, we will open the lines to participants for questions, as noted by Kelly. Please note that comments made today that are not of a historical factual nature may contain forward-looking statements. This information by its nature is subject to risks and uncertainties that may cause the stated outcome to differ material from actual outcomes. Please refer to the bottom of our latest news release for more information. For those of you following on the webcast we will be referencing to page number of the supporting slides. I’ll now turn the call over to our CEO, Jim O’Rourke for his remarks. Jim O’Rourke: Thank you, Rod. Good morning everyone and thank you for joining us. Today we’ll discuss the 2017 first quarter results of our operation at the Copper Mountain Mine and our corporate financials. I’ll briefly summarize the financial results and provide an update of the various operational activities, after which Rod will provide the financial details for 2017 first quarter. For the third months ended March 31, 2017 Copper Mountain continued to focus on maintaining record production levels achieved last year. The company has enjoyed improved metal prices and continued focusing on cost containment and production efficiencies. I’ll refer to slide two for those who have the book and the first quarter highlights. During the quarter the company completed the total of four shipments of copper concentrate containing approximately 19 million pounds of copper plus precious metals. These sales generated $74.1 million in revenue net of treatment and refining charges and price adjustments. The average realized copper price was US265 per pound. This is compared to revenues of $58.7 million net of pricing adjustments and with…

Thank you, Jim. As noted on slide eight, the company recognized revenues of $74.1 million for the first quarter ended March 31, 2017 after pricing adjustments and treatment charges. And this was based on sales of 19 million tons of copper, 6,000 ounces of gold and 64,000 ounces of silver. The average realized copper price for the first quarter of 2017 was 265 per pound, as compared to 210 per pound for the quarter ended March 31, 2016. Comparative revenues for Q1 2016 were $58.7 million after pricing adjustments and smelter charges. Realized average copper prices increased by 26% quarter over quarter, this combined with the increase copper sales as compared to Q1, 2016 accounted for the increase in Q1, 2017 revenues as noted by Jim. As noted on slide nine, cost of sales for the first quarter ended March 31, 2017 were $69 million which resulted in a gross profit of $11.2 million as compared to cost of sales of $57.2 million which resulted in a gross profit of $1.6 million for the first quarter ended March 31 2016. The increase in cost of sales as a direct result of selling more copper during the quarter and getting back some of the cost savings realized on diesel and electricity as well as higher than normal drilling and blasting cost during the quarter as noted by Jim. General and administrative expenses which include some mines site administrative expenses were $2.7 million for the first quarter ended March 31, 2017 compared to the $1.8 million for the first quarter ended March 31, 2016. Non-cash share-based compensation reflected in an expense that $0.5 million for the first quarter ended March 31, 2017 compared to an expense of $0.2 million for the first quarter ended March 31, 2016. For the quarter ended March…

[Operator Instructions] Your first question comes from Craig Hutchison from TD Securities. Your line is open.

Good morning, guys. A question on your working capital changes, it was negative $18 million in a quarter and there was some changes to inventory and accounts payable, but can you give more context around that number, it seems fairly large? And do you that will reverse itself for the course of the year?

Yes. I think, I think as -- good question Craig. As outlined in our MD&A and in the liquidity section, I think you really need to look at that amount due to related party, because I don't think that should really be part of our working capital. Its funds that have been advanced by Mitsubishi that are on rolling one year notes, we've been doing it for five years, but unfortunately because there just one year notes that roll we have to report that as a current liabilities. So, if you took about 30 million out then take a look at the change in working capital.

Okay. So, how much in the quarter I guess it’s related to Mitsubishi?

We saw an increase in the amount due to them of about $8 million.

Okay. And just in terms of the operations, if you sort of hit the target, so you’re talking about 30,000 tons per day for the year in a greater point three, are you not going to trend below the low end of your guidance of 75 million. Do you think throughput will get up to $40,000 to sort of compensate for the shortfall you’re looking for Q2?

The mill throughput on the first half of the year will below as Jim noted because of that plant maintenance that we have and that was incorporated into our yearly plan. So you still will see an increase in throughput on the second half of this year, now that this gear changes behind this.

In terms of recoveries, can you give us sort of sense of where you guys would be with that sort of in the low 80s? Jim O’Rourke: Yes. Our forecast is 82% recovery. We did have hit in the first quarter. We did find small patch in the pit area that was very fine-grained in between Pit #2 and 3 and we mine through it, so we’re not expecting more. But we are starting a program of geomet testing of the various areas of the pit to get a better handle on the overall metallurgy. The metallurgy or the mineralization changes substantially throughout the pit area and we have areas where we have recovery up closed to 90% and then as you saw areas where they are down in the high 70s. So, we just want to get a better handle on that and possibly incorporate some of that into our block model.

Okay, guys. Thanks for taking my questions.

Your next question comes from the line of Marco Rodriguez from Stonegate Capital. Your line is open.

Good morning, guys. Thank you for taking my question. Just a couple real quick ones. Just coming back here to the increase in the power rates you guys saw in the quarter, does that have anything – any driver there from the electricity deferral plan from last year or is that going through some place else?

No, Marco. That’s everybody got that in the province. It was – you saw 4% increased come through. We did from a cash flow point of view. You did see a repayment of the Hydro. Our electrical deferral went down from 15 million at year end to about 11 million at the end of the quarter. But you'll -- you're just subject to the BC increase in electricity rates.

Got you. And so, when that given the fact that you’re not based on where the current copper prices are right now, you don’t – you can’t use that program anymore as of right now. Is there – remind me, is there any impact when you start to make those payments back through the income statement or is it all just cash flow item?

It’s all just a cash flow item and this remind you that, if this is based on a monthly basis. Each month BC Hydro informs us of the average copper price and the average bank account exchange rate and that determines your deferral or premium or repayment if you will of the electricity. But you're correct that the rates were out right now, we are paying back that deferred program.

Got you. And just another real quick kind of housekeeping item here, I kind of noticed here in your notes and on your filings for revenues, the presentation of the numbers somewhat changed with the pricing adjustments, it seems like they are now kind of embedded inside the concentrate sales. Was this an accounting rule change or something internally that drove this decision?

It was more of an internal disclosure on it. No accounting rule changes. All the rules have stayed the same. We just got some feedback from people that sound a little confusing. So we just made a little simpler.

Got you. Thanks a lot guys. Appreciate your time.

Thank you.

[Operator Instructions] Your next question comes from Stefan Ioannou from Coremark Securities. Your line is open.

Great. Thanks guys. Just couple of quick questions. Just on the G&A should we expect to see them at $2.6 million a quarter level going forward or should they come back to something we sort of saw in prior previous years?

No. You should see that come back down.

Okay. Okay. And then just on the guidance side of things obviously expect the copper production to come up, should we assume the same for the gold and silver byproducts increasing through the second half of this year as well?

Yes. You would expect that.

Okay. Okay. And then just on – last question, just a back on some power deferral stuff, but just when I looking at the cash flow statement, where do I actually see that sort of repayment of the deferral going through?

It’s going to be in the working capital.

Okay. It’s embedded in there, okay. Got it. Okay. Okay. And then just you mentioned sort of based on your budgeting you sort of see $3 million of it through repayable this year, another 11 million next year. What sort of copper price and FX rate you think they come up with that sort of schedule?

Sorry, can you repeat that question?

Well, just sort of in terms of like repaying back everything, you sort of mentioned somewhere in the MD&A that $3 million would get paid back this year and the balance in 2018 based on your forecast of copper and FX rate going?

You're referring to the power?

The power, yes.

Okay. Okay. That is based on where the copper and FX rate is. About 340 Canadian makes it about a breakeven.

Yes.

And based on the latest sort of forecast going forward sort of averaging 250 this year, hope you’re going to -- you can calculate where that repayment would be.

Yes. And obviously they’re using sort of [consensus] to come up with those numbers, okay.

Yes, US$250 we’re talking.

US, of course, yes, and then FX rate somewhere around current spot against there, yes, okay.

Yes. Where we are now like 1.33.

Yes.

Yes.

Yes. Okay, great. That helps. Thanks very much guys.

Okay.

And there are no further questions at this time. I’ll turn the call back over to the presenters.

Well, thank you very much for dialing into our Q1 conference calls. And as usual if you have any additional questions please call Jim or myself directly and we’ll be more than happy to answer them. Thank you very much. Good bye.

This concludes today’s conference call. You may now disconnect.