ATLAS MINING and Development Corp.’s losses widened to P939 million in the first nine months of the year, due to a mark-to-market loss provision for copper price hedges.
In a statement, the listed miner said excluding the P400-million provision for mark-to-market loss, its nine-month net loss would have been P539 million versus P470 million a year ago.
Earnings before interest, tax, depreciation and amortization (EBITDA) for the nine month period stood at P2.5 billion, 9% up from P2.3-billion earnings a year ago.
Its wholly owned subsidiary Carmen Copper Corporation milled 10.498 million tons of ore and produced 58 million pounds of copper metal year to date versus the 12.682 million tons milled and 77.1 million pounds of copper metal produced during the same period in 2016.
Production showed steady improvement in the third quarter by 12% or 21.42 million pounds copper metal produced against 19.07 million pounds in the second quarter.
Average realized copper price was pegged at $2.70 per pound, 27% higher than the $2.13 per pound (lb) a year ago. Average realized gold price remained stable at $1,255 per ounce from $1,258 per ounce in 2016.
For the third quarter, copper price improved by 12% at $2.87/lb from the average price in the second quarter of $2.56/lb.
“The provision for mark to market loss represents the accounting valuation of outstanding copper price hedges as copper price increased above the hedge prices at the end of the third quarter. This provision changes as the copper prices change and the final variance is determined at the month of settlement,” Atlas explained. — Janina C. Lim
