Atlas posts P814-M loss as copper prices fall

ATLAS Consolidated Mining and Development Corp. has tanked in 2015, reporting a net loss of P814 million largely due to falling copper prices.

The company reported this after seeing 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.

Still, the company said the 2015 end-result was much better than figures from earlier last year as performance for the nine months to September showed a net loss of P1.3 billion.

“Increased production volumes and ongoing cost efficiency improvements helped cushion the impact of low copper prices,” it added.

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.

Similarly, average realized gold price fell by 9 percent to $1,152 an ounce from $1,265 an ounce.

The company said the narrower net loss for the full year was also due to the share in net income from Berong Nickel Corp. amounting to P244 million, net foreign exchange gain of P138 million and realized gains on derivatives of P295 million attributable to the recognition of derivative assets and liabilities from provisional pricing contracts still outstanding at the end of the year for copper concentrate shipments.

Further, Atlas Mining saw “intensified improvements” in production volumes in the second half of 2015, owing to ongoing improvements in maintenance and process efficiencies at wholly-owned subsidiary Carmen Copper Corp.

For the second semester, output of copper metal in concentrate grew by one-fifth to 55.6 million pounds, driven by relatively higher head grade, continuous improvement in copper recovery and increased milling tonnage.

Milling tonnage jumped 13 percent to 9.5 million tons as average daily throughput ramped up to 51,800 tons per day (tpd) in the second half from 46,600 tpd in the first half.

Even then, Atlas Mining said that considering the dampened copper prospects, it had reduced its mill throughput at the Carmen Copper mine from its nameplate capacity of 60,000 tpd to 40,000 tpd.

“While management views the long-term outlook for copper positively, the company must respond to current market conditions to optimize cash flow while protecting its large mineral resources for the longer term and to position the company to enhance performance and throughput when copper prices improve,” Atlas Mining said.