Atlas Mining losses doubled in 9 months

Atlas Consolidated Mining and Development Corp. doubled its consolidated net loss for the first nine months of the year to P939 million from P470 million a year ago.

This includes the company’s P400 million provision for mark to market losses as copper price increased above the hedge price at the end of the third quarter.

In terms of operations, its wholly-owned subsidiary Carmen Copper Corp. milled 10.498 million tons of ore and produced 58 million pounds of copper metal year-to-date. These were lower than the 12.682 million tons milled and 77.1 million pounds of copper metal produced during the same period last year.

Atlas Mining’s production showed steady improvement in the third quarter, registering an increase of 12 percent or 21.42 million pounds of copper metal from 19.07 million pounds in the previous quarter.

Metal prices increased year-on-year by 27 percent to $2.70 from $2.13, while average realized gold price remained stable during the period at $1,255 per ounce.

One-off costs related to loan refinancing, high waste charged to operation, and lower shipment volume jacked up the company’s average cost per pound for the nine-month period by 30 percent to $1.36 per pound from $1.77 per pound.

Last year, Atlas Mining reduced its capital expenditure to $27 million from $104 million, as low copper prices brought the firm in the red.

This was further reduced to $12 million this year.

Nonetheless, the company expects to remain the biggest copper producer in the country in the medium to long term.