Atlas posts P1.3B net loss on weak peso

Paper losses related to the weakening peso forced Atlas Consolidated Mining and Development Corp. to report a net loss of P1.3 billion from January to September this year.

A company statement Monday showed this was a reversal from a net income of P841 million in the same period of 2014.

The company also said copper prices remained depressed, with the nine-month average settling 19 percent lower at P3.16 per pound.

Similarly, the average gold price for the period was 9 percent lower at $1,171 per ounce.

“Production volumes and cost efficiency improvements in the third quarter helped to offset the low copper price environment,” Atlas Mining said.

From January to September, the company produced 9 percent more gold at 21,677 ounces. On the other hand, copper output fell 10 percent to 73.3 million pounds.

But in the third quarter alone, subsidiary Carmen Copper Corp. increased copper metal concentrate output by 12 percent to 26.9 million pounds.

“However, an accounting charge for unrealized foreign exchange losses resulted in a reported third quarter consolidated net loss of P707 million,” the company said.

“Excluding the provision for unrealized foreign exchange losses, consolidated net loss for the nine months was P569 million and for the third quarter was P111 million,” it added.

Atlas Mining has foreign currency risk arising from its cash and cash equivalents, receivables, deposit, accounts payables and accrued liabilities, loans payable and long-term debt. Losses are incurred when the peso depreciates against foreign currencies like the US dollar.