It seems, everything is going just fine for Copper Mountain Mining Corporation (TSE:CUM), (PINK:CPPMF). Positive developments and announced solid financial fundamentals led the stock to a new price record last Friday. Besides, the company got the deserved attention of a well-known promoter.

On Friday, the shares noted a price record on two markets. On the Toronto Stock Exchange (TSE), CUM climbed to $7.92 during the session, to finish trading at $7.85. This represents a 5.5% rise from the previous close. The turnover was above the average. On the American OTC market, CPPMF gained almost 6%, closing at $8.1135, which is an all-time record too.

Some of the events and developments that facilitated the progress of the stock, probably came in the last days of March. As most investors know, the company’s only property, for the time being, is the Copper Mountain Project in British Columbia, Canada. This deposit has a long history of production. Last Tuesday, Copper Mountain announced positive assay results from the last five holes drilled in the Saddle zone of the property. This might have impressed some traders.

Copper_Mountain_-_Chart.pngAdditionally, investors might have been encouraged by the latest financial reports, filed by the company on the last day of March. They do look promising:

  • As at Dec. 31, 2010, Copper Mountain had a solid cash position of $153M and working capital of $136.7M. These figures do not account the $40M bought-deal financing which the company completed in early February;
  • As stated in the latest company’s presentation, production on the Copper Mountain project is expected to start pretty soon – in mid-2011. The annual output is projected to be 100M pounds (lbs) of copper.

In view of all we mentioned, it is no doubt that Copper Mountain got the attention of the famous promoter Mr. Lebed again. As he points out in another one of his recent alerts on CUM, his firm was compensated with $20,000 by a third-party, namely B&D Capital Partners, for a one-month CUM investor relations contract.

Of course, not everything is so bright and perfect for Copper Mountains. Now it is time for the negative side of the story. The mentioned financial reports contain some not so encouraging data:

  • In the end of 2010, the company had a huge debt – $308.5M, the greatest part of it to be paid after 2016;
  • A big rise in the stock dilution. As at Mar 25, 2011, Copper Mountain had 98M outstanding common shares, while in the end of 2009 they were 45M. This is an increase of 117%.

Copper_Mountain_-_Logo.pngThe future will show whether the company’s production expectations and prognoses will hold true and for how long the progress of the stock may continue. A recent video on Copper Mountain might give you more information about the company’s project development in 2011.