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Atlas Mining posted Php939 million net loss; underlying earnings and production improved in the 3rd quarter

14 November 2017
Manila, Philippines

Atlas Consolidated Mining and Development Corporation (“Atlas Mining”) posted a consolidated net loss of PhP939 million for the three quarters of 2017. Without a PhP400 million mark to market loss provision for copper price hedges, the net loss would have been PhP539 million compared to PhP470 million for the same period last year.

Improvements in production and in copper price in the third quarter pushed the Earnings before intere st, tax, depreciation and amortization (EBITDA) for the nine month period to Ph P2.5 b illion , 9% higher than Ph P2.3 b illion earnings for the same period in 2016 .

Its wholly - owned subsidiary Carmen Copper Corporation milled 10.498 million tonnes of ore and produced 58 million pounds of copper metal year to date , as compared to 12.682 million tonnes 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 1 2% or 21.42 million pounds copper metal produced against 19.07 million pounds in the second quarter.

Metal prices year - on - year showed that a verage realized copper price continued to increase at USD2. 70 /lb , 2 7 % higher than USD2.13/lb, while a verage realiz ed gold price remained stable at USD1, 255 /oz from USD1, 258 /oz in 2016. For the third quarter, c opper 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 accounti ng 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.

Cash cos ts were lower by 2% from PhP6.6 billion in the first nine months of 2016 to PhP6.5 billion year to date. Average cost per pound however increased by 30% from USD1.36/lb to USD1.77/lb for the nine months, due to one - off costs related to loan refinancing, hi gher waste charged to operations, lower by - product credits and lower volume shipped.

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