Lower production pulls down Atlas Mining income

Listed mining firm Atlas Consolidated Mining and Development Corp. reported a 12-percent decline in its end-September net income to P3.07 billion from P3.48 billion in the same period a year prior due to lower production and mixed metal prices.

In a disclosure, Atlas Mining said gross revenue for the comparative period dropped by 9 percent to P13.31 billion from P14.65 billion.

Copper metal production by its wholly-owned subsidiary, Carmen Copper Corp., plunged by 14 percent to 54.82 million pounds due to the lower tonnage milled.

“The reduction in copper metal production was mainly due to inclement weather experienced during the first four months of the year and this quarter,” the company said.

Milling tonnage for the July to September period alone decreased by 11 percent to 12.60 million tons. Copper grades tumbled by 3 percent to 0.238 percent.

Gold production went down by 13 percent to 16,923 ounces, also because of lower gold grades which stood at 5.36 grams per dry metric ton.

Copper metal content of concentrate shipped fell by 12 percent to 56.90 million pounds and gold content dipped by 11 percent to 16,377 ounces.

Metal prices were mixed, with the price of copper down by 2 percent to $4.15 per pound but that of gold inched up by 1 percent to $1,827 per ounce.

Meanwhile, earnings before interest, tax, depreciation and amortization were lower at P4.37 billion from P8 billion.

“Operating cost was adversely affected by higher energy and fuel prices, and higher waste charged to operations,” it added.

Cash generated from operations improved, enabling the additional loan payment of $74.6 million of loans. INQ