Despite lower ore production, the country’s biggest copper producer Atlas Consolidated Mining and Development Corp. saw its net income at end-September soar by 610 percent on the back of higher metal prices.
In a disclosure to the stock exchange, Atlas Mining reported a net income of P3.48 billion against P490 million in the January to September period last year. It also recorded higher earnings before interest, tax, depreciation and amortization of P8.02 billion from P6.13 billion the year prior.
The company’s cash costs also decreased by 3 percent from a year ago to P6.82 billion from P7 billion due to lower shipment and production volumes.
During the nine-month period, Atlas Mining’s subsidiary, Carmer Copper Corp., delivered 16-percent less copper concentrate, 19-percent less copper metal, and 42-percent less gold in its shipments.
Production-wise, Atlas Mining’s copper and gold output went down by 21 percent and 45 percent, respectively.
On a quarterly basis, however, copper and gold production in the third quarter was higher compared to the second quarter due to improvement in grades. Copper metal increased by 11 percent to 25.46 million pounds from 22.80 million pounds while gold output rose by 44 percent to 8,386 ounces from 5,829 ounces.
Global metal prices have skyrocketed, pushing average copper and gold prices up by 60 percent and 4 percent, respectively, to $4.22 a pound and $1,803 per ounce during the period.
The friction in global trade caused by the lingering pandemic is expected to sustain the upward trend in ore prices not just for gold and copper but even for nickel, assuring mining companies of record profits until year-end.
The trend has allowed Atlas Mining to return to profitability following a series of losses in the previous years.
Adrian Paulino Ramos, Atlas Mining president, earlier said the company continued to improve its operations to hedge against any possible downturn in the commodities market moving forward.