Atlas swings to net loss on lower mining output
Atlas Consolidated Mining and Development Corp. incurred a net loss of P653 million in the first semester, a reversal from a net income of P2.07 billion in the same period last year, as the redevelopment of its copper mine slashed production.
In a stock exchange disclosure on Monday, Atlas Mining said revenues during the period had declined by 36 percent to P7.94 billion.
The company’s cash cost, or expenses incurred from the acquisition of goods and services, fell by 19 percent to P5.9 billion.
Atlas Mining said the three-year redevelopment program of its subsidiary, Carmen Copper Corp., would be completed by the middle of next year.
The redevelopment, however, temporarily lowered ore production, affecting financial performance.
Carmen Copper has an operating agreement with Atlas Mining. It holds exclusive operating rights over the Carmen, Lutopan and Biga mineral deposits, collectively known as the Toledo copper mine, spanning 1,674 hectares.
The copper mine, whose production began in 1995, forms part of Atlas Mining’s mineral property covering 5,218 hectares. Of these, 3,284 hectares are mining claims held by the mining firm.
Atlas Mining also said it had produced 65,000 dry metric tons of copper concentrate, decreasing by 31 percent. It also delivered 7,117 ounces of gold, down 57 percent.
This was as average price of copper rose by 5 percent to $4.32 per pound, while gold climbed by 40.42 percent to $3,112 per ounce.
Furthermore, the company made 12.86 shipments in the first six months of this year, down by 30 percent.
Its earnings before interest, taxes, depreciation and amortization plunged by 60 percent to settle at P2.11 billion.
Atlas Mining is considered Asia’s largest copper producer. Aside from the Toledo mine site, it has significant and focused interests in copper, nickel, mineral exploration and water source development.
