Atlas Mining reports P611-M net loss

Low metal prices and poor output drove Atlas Consolidated Mining and Development Corp. to incur a P611-million net loss in the first half of 2015, a steep slide from a P989-million net income posted in the same period last year.

In a statement, Atlas Mining attributed the loss to the 39-percent decline in revenues for the semester, which settled at P5.3 billion from P8.7 billion in the first half of last year.

In the comparative six months to June, the average realized copper price dropped 15 percent to $2.67 from $3.15 per pound. The average realized gold price, on the other hand, decreased 7 percent to $1,201 from $1,295 an ounce.

Atlas Mining’s subsidiary, Carmen Copper Corp., reported an output contraction of 13 percent, resulting in only 46.4 million pounds of copper metal concentrate.

The company blamed this on unusually heavy rainfall and pit slope ground movement. It said necessary maintenance activities were also implemented in the expanded processing plant.

Nonetheless, Atlas Mining said it did well during the second quarter to be able to trim down the P637 million net loss reported in the first quarter.

In the second quarter, production volumes improved as a result of ongoing work to improve key operations and complete maintenance activities.

Along with improved metal prices, second-quarter output resulted in a 6-percent increase in revenues to P2.8 billion.

The company said the growth in revenues helped Atlas Mining to chalk up a net income of P26 million in the second quarter.

“We are making significant progress towards addressing all of the issues that hampered production during the first half of 2015,” Atlas Mining president Adrian Ramos said.

“We will continue to address those issues in order to maximize production and be competitive in the current difficult environment, and we are optimistic that we will be able to make up for the shortfall in production in the second half of the year,” he said.