Atlas Mining lowers production, capex
ATLAS Consolidated Mining and Development Corp. is lowering its production volume “to preserve the value of resources for the future” as low copper prices brought the firm in the red last year.
Adrian Paulino S. Ramos, Atlas Mining president, said in an interview that throughput at the Carmen copper mine in Cebu would be down to 40,000 tons per day by May from 60,000 tpd.
“The management, after an exhaustive review, has determined that (such volume of ore processing) is the optimal level of production for near-term cash management,” Ramos said.
He said a lower throughput would allow the company to temporarily halt stripping activities this year and the next.
“From a planned spending of $104 million, we will reduce our capex needs to $27 million this year and to an estimated $12 million in 2017,” he said.
Even then, the company expects to remain the biggest copper producer in the Philippines in the medium to long term.
Ramos said Atlas Mining intended to focus on further reducing cash costs through cost-containment initiatives and improvements in operations.
Earlier this month, Atlas Mining reported a net loss of P814 million for 2015 due to falling copper prices.
Before that, the company saw its net income contract in at least the past two years, first by 79 percent to P397 million in 2014 from P1.9 billion in 2013.
In 2013, Atlas Mining also reported a decrease in net income by 45 percent from P3.4 billion in 2012.
Atlas Mining said copper prices fell to a six-year low on continuing concerns over the future demand from China, averaging at $2.46 per pound last year or 21 percent lower than $3.12 per pound in the previous year.
The average realized gold price also fell by 9 percent to $1,152 an ounce from $1,265 an ounce.
