ATLAS CONSOLIDATED Mining and Development Corp. reported a 6% increase in its net loss attributable to the parent firm’s equity holders for the first quarter to P37 million due to higher deferred tax provisions.
In a disclosure to the stock exchange on Tuesday, Atlas Mining said its core income rose 77% to P113 million, compared with P64 million in 2019.
The company’s earnings before interest, tax, depreciation, and amortization (EBIDTA) rose 6% to 1.62 billion due to lower copper price and copper metal content.
Atlas Mining’s wholly owned subsidiary, Carmen Copper Corp., recorded a 2% increase in its copper metal production to 27.92 million pounds while gold production rose 14% to 11,169 ounces.
“The increase in copper and gold production resulted from higher tonnage milled and higher realized grades,” the company said in the disclosure.
Milling tonnage climbed 2% to 4.45 million tons while copper grades improved 2% to 0.321% and gold grade improved 15% to 7.12 grams per dry metric ton.
Atlas Mining’s copper concentrate shipped during the first quarter fell 5% to 47,000 tons due to higher inventory carried over to the first quarter of 2019 from the fourth quarter of 2018, while copper metal content of concentrate shipped declined 4% to 26.60 million pounds.
However, the company’s gold content rose 9% to 9,626 ounces due to higher gold grade.
Price of copper in the first quarter was 10% lower at $2.52 per pound while the average realized gold price was 21% higher at $1,574 per ounce.
“The improvement in operating efficiencies that increased throughput and higher grades resulted in the lower average cost per pound by 29% from $1.54 per pound in 2019 to $1.10 per pound in 2020,” the company said.
The company’s cash costs fell 18% to P2.44 billion in 2020 versus P2.99 billion in 2019 which countered the impact of its lower revenues.
Atlas Mining President Adrian Paulino S. Ramos said the company is confident that it can sustain full operations and attain its production targets for the rest of the year despite the effects of the coronavirus disease 2019 (COVID-19) pandemic on metal prices and the overall supply chain.
“Fortunately for Atlas Mining, it was able to sustain full operation even under the enhanced community quarantine which enabled the company to fulfill all commitments to its buyers and suppliers,” Mr. Ramos said.
On Tuesday, shares in Atlas Mining rose 1.56% or P0.03 to close at P1.95 apiece. — Revin Mikhael D. Ochave
