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Atlas Mining reported Php118 million Net Income in 2020

March 06, 2021
Manila, Philippines

Atlas Consolidated Mining and Development Corporation (“Atlas Mining”) reported a net income of Php118 million for the whole year of 2020. This is a complete turn-around performance compared to the net loss of Php565 million for the same period in 2019. The improvement in the bottom line is attributed to the sustained stability of operation and production, the significant increase in gold volume, the increase in metal prices in the second half and the decrease in operating costs.

Atlas Mining’s wholly-owned subsidiary, Carmen Copper Corporation, reported copper metal production of 107.24 million pounds in 2019 to 107.09 million pounds in 2020. Gold production increased by 27% from 37,786 ounces to 47,857 ounces. The increase in gold production resulted from higher tonnage milled and higher realized gold grades, respectively. Milling tonnage increased by 5% from 17.57 million tonnes to 18.37 million tonnes. On the other hand, copper grades decreased by 5% from 0.319% to 0.304%; while gold grade significantly improved by 31% from 6.24 grams/dmt to 8.17 grams/dmt. Copper metal content of concentrate shipped decreased by 4% to 106.07 million pounds while gold content increased by 23% to 43,480 ounces due to higher gold grade.

The increase in metal prices that started in June 2020 continued to improve in the last quarter when Copper price increased by 6% to $2.79/lb versus the nine-month realized average price of USD2.64/lb. Gold price also continued to improve in the last quarter by 3% to USD1,777/oz compared to the nine-month average of USD1,730. Year-on-year, the average realized copper price for the whole year increased by 2% to USD2.79/lb from USD2.72/lb in 2019; while the average realized gold price increased by 27% to USD1,777/oz in 2020 from USD1,394 in 2019.

The improvement in operating performance from increased throughput, the increase in by-product credits from gold due to higher gold production and higher gold prices, and the decrease in operating costs resulted in a lower average cost per pound by 34% from USD1.38/lb in 2019 to USD0.90/lb in 2020. Cash costs decreased by 14% from Php11.09 billion in 2019 to Php9.51 billion in 2020. The decrease in cash costs was due primarily to significant decreases in waste stripping, fuel, power, explosives and maintenance parts.

Earnings before interest, tax, depreciation and amortization (EBITDA) settled at Php8.919 billion, 46% higher compared to Php6.115 billion of 2019 on the strength of improving metal prices and operating efficiencies. This pushed core income for the period higher by 510% to Php2.576 billion in 2020 from Php422 million in 2019. Accordingly, cash generated from operations improved which enabled the payment of $80 million of Atlas Mining’s loans this year in addition to $52.7 million of loan payments in 2019.

According to Atlas Mining President, Adrian Ramos, “The operational improvements we have consistently attained over the years have positioned Atlas Mining to realize growth in earnings as metal prices continue to improve. We are confident as well that these improvements will serve as an effective hedge against any downturn in the commodities market. We will continue to focus on operational stability and safety, cost efficiencies and sustainability.”

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