14 August 2013

Atlas Consolidated Mining and Development Corporation ("Atlas Mining") posted a core income of P1.17 billion in the 1st half of 2013, 11% lower than 1.31 billion in the 1St half of 2012 due mainly to lower realized metal prices. Although revenues registered P7.05 billion, 14% lower year-on-year, the impact of lower realized metal prices was tempered by an 18% drop in total cash costs amounting to P4.31 billion compared to last year's at P5.26 billion.

Atlas Mining's wholly-owned subsidiary Carmen Copper Corporation (Carmen Copper) registered total production of 44 million pounds of copper metal in concentrate for the 15t half of 2013, 2% lower year-on-year due to lower ore grade. The lower ore grade is a temporary dip in the average grade level as a result of the ongoing development of the Carmen Pit. However, the daily average milling capacity increased by 4% year-on-year to 43 thousand tonnes per day as a result of process improvements.

Carmen Copper registered a shipment volume of 43.5 million pounds of gross copper metal in concentrate, 6% lower year-on-year. The shipment volume in the 15t half of 2012 totaled 46.5 million pounds inclusive of inventory carry-over from the 2nd half of 2011. Meanwhile, gold shipments grew 23% year-on-year to 8,457 ounces as a result of higher grade.

Realized copper and gold prices registered lower by 8% and 9% respectively. Copper price averaged at US$3.37 per pound while gold price averaged at US$1,497 per ounce.

Carmen Copper's production cash cost per pound decreased by 15% year-on-year to US$1.74 from US$2.04 in the first half of 2012.

For the first half of 2013, Atlas Mining's net income reached P750 million, 52% lower year-on-year due mainly to unrealized foreign exchange losses on dollar-denominated debt. Without the unrealized foreign exchange losses, net income would have registered at P1.35 billion.

Says Atlas Mining Executive Vice President Adrian Ramos, "As we recognize the challenges of weaker global commodity prices, we remain focused in our strategy to continually reduce costs, increase production and improve further our operational efficiency. In July, Carmen Copper reached a peak milling capacity of 50 thousand tonnes per day which tells us that we are gaining some momentum as a result of a more efficient operation. Likewise, we are expecting to deliver better ore grades to the mill by the 2nd half of the year as we continue developing the Carmen pit."

Carmen Copper is undertaking construction works for its expansion program. With its expected completion within the 2nd half of 2013, this program will support Carmen Copper in generating a total milling capacity of 60 thousand tonnes per day by 2014.