7 August 2019
Manila, Philippines

Atlas Consolidated Mining and Development Corporation (“Atlas Mining”) reported a lower net loss of Php66 million for the first half of 2019, a 70% improvement from the Php221 million net loss in 2018 as revenues increased by 13% from Php7.61 billion to Php8.58 billion on the strength of higher production and shipment volumes that tempered the impact of lower copper prices.   

Its wholly-owned subsidiary, Carmen Copper Corporation, sustained improvements in its operations.   Copper metal production increased by 30% from 39.55 million pounds in 2018 to 51.46 million pounds in 2019.  Gold production also increased by 36% from 13,333 ounces to 18,119 ounces in 2019.  The increase in copper and gold production resulted from higher tonnage milled and higher realized grades.  Milling tonnage increased by 9% from 7.67 million tonnes to 8.33 million tonnes.  On the other hand, copper grades improved by 23% from 0.267% to 0.328%; and gold grade improved by 2% from 5.98 grams/dmt to 6.12 grams/dmt.

With sustained production, copper concentrate shipped in the first half increased by 28% from 74,100 tonnes to 95,200 tonnes. Copper metal content increased by 26% to 53.57 million pounds and gold content increased by 28% to 17,117 ounces.

Metal prices in the first half were lower year-on-year with average realized copper price at US$2.80/lb in 2019, 10% lower than US$3.12/lb in 2018, and average realized gold price at US$1,304/oz in 2019, 1% lower than US$1,313/oz in 2018.

The improvement in operating efficiencies that increased throughput and realized higher grades resulted in a lower average cost per pound by 15% from US$1.76/lb in 2018 to US$1.49/lb in 2019.  However, due to the higher volume of shipments, cash costs were 11% higher from Php5.11 billion to Php5.66 billion.

Earnings before interest, tax, depreciation and amortization (EBITDA) settled at Php3.01 billion, 16% higher compared to Php2.59 billion in the first half of 2018 as the gains from higher revenues offset the increase in cash costs.  Accordingly, core income increased by 235% to Php220 million even with higher financing and depletion charges in 2019 compared to a core loss of Php163 million in 2018.