Atlas Consolidated Mining and Development Corp.’s net loss more than doubled to P1.97 billion in 2017 from P879 million the prior year, according to its latest disclosure.
Underlying earnings actually improved but provisions for mark-to-market losses for copper price hedges and for effective interest rates on certain loans affected the bottom line. Without these mark-to-market provisions, the underlying net loss would have reached just P745 million, compared to P879 million the previous year.
The disclosure showed that improvements in copper prices pushed its earnings before interest, tax, depreciation and amortization to P3.81 billion, 20 percent higher than the P3.17 billion earnings for 2016.
In terms of operations, its wholly owned subsidiary Carmen Copper Corp. produced 78.19 million pounds of copper and 21.979 ounces of gold during the period, compared to 102.88 million pounds of copper and 33,958 ounces of gold in 2016.
The lower output was caused mainly by the unusually high levels of rainfall that hit the area during the first quarter of 2017, leading to the restriction of mine operations.
As for metal prices, average copper prices increased to $2.78 per pound last year, 26 percent higher than $2.21 per pound in 2016. Average prices for gold remained stable at $1,259 per pound.
Cash costs, on the other hand, were lower by 9 percent to P8.15 billion from P8.97 billion.