Atlas Mining incurs 52% drop in first half net on forex losses, low metals prices

Atlas Consolidated Mining and Development Corporation posted a 52-percent drop in first half net income due to lower metal prices and foreign exchange losses.

 

In an e-mailed statement Thursday, the miner said net income reached P750 million from P1.6 billion in January to June from a year earlier mainly on unrealized foreign exchange losses on dollar-denominated debt. Without the foreign exchange losses, net income would have registered at P1.35 billion.

 

Core income was down 11 percent to P1.17 billion year-on-year weighed by lower realized metal prices.

 

Revenues were 14 percent lower to P7.05 billion from P8.2 billion, tempered by a 18-percent decline in total cash costs to P4.31 billion from P5.26 billion.

 

"As we recognize the challenges of weaker global commodity, we remain focused in our strategy to continually reduce costs, increase production and improve further our efficiency," executive vice president Adrian Ramos said in a statement.

 

Wholly-owned subsidiary Carmen Copper Corporation produced 44 million pounds of copper metal in concentrate, a 2-percent decline on lower ore grade as a result of ongoing development works from the  Carmen Pit.

 

"In July, Carmen Copper reached a peak milling capacity of 50,000 tons per day which tells us that we are gaining some momentum as a result of more efficient operation," Ramos said.

 

He added that they expect to deliver better ore grades by the second half on continued development in Carmen Pit, which is expected to generate 60,000 tons per day by 2014. — Danessa Rivera/VS, GMA News