May 17 (Reuters) - Shares of Copper Mountain Mining Corp fell 15 percent after the Canadian miner said on Thursday production would be reduced at its only mine due to a transformer failure.
At least two brokerages cut their price targets on the company’s stock on Friday.
Production at the Copper Mountain mine in British Columbia would fall by a third to 24,000 tonnes per day for up to four weeks, Chief Financial Officer Rod Shier told Reuters.
“The transformer is not a huge cost, it is more a loss of production time,” said Shier.
The company owns a 75 percent interest in the mine while Mitsubishi Materials Corp owns the rest.
“We estimate (2013) production may likely be revised downward to about 72 million pounds,” said Paradigm Capital analyst David Davidson in a note to clients.
He cut his price target on the stock to C$6 from C$6.25.
The company said in December it expected the mine to produce 80 million pounds of copper in 2013.
The mine produced 56.6 million pounds of copper in 2012.
“We feel the company should generate sufficient cash over the next few quarters to fund the secondary crusher, which would ultimately help attain the targeted 35,000 tonnes per day,” Davidson said.
Analyst Christopher Chang of Laurentian Bank Securities lowered his price target on the stock to C$3.30 from C$3.80.
Shares of the company were down 8 percent at C$1.55 on the Toronto Stock Exchange. The stock touched more than a three-year low in early trading. (Reporting by Krithika Krishnamurthy in Bangalore; Editing by Sriraj Kalluvila)