Higher input costs, bad weather gnaw on Atlas profit

MANILA, Philippines  – Higher oil and production costs incurred by its subsidiary, alongside lower output due to inclement weather, weighed down on the profitability of listed mining firm Atlas Consolidated Mining and Development Corp. last year.

In a disclosure on Monday, Atlas Mining reported that consolidated net income reached P3.21 billion in 2022, down 17 percent from P3.86 billion in the past year. Gross revenues tumbled by 4 percent to P17.68 billion from P18.5 billion.

“The lower NIAT (net income after tax) was mainly due to the unprecedented spikes in fuel and energy prices that resulted in higher operating and production costs as well as lower production levels brought about by significant heavy rainfall volumes experienced by its wholly-owned operating mine, Carmen Copper Corp (CCC),” added the listed firm.

Atlas Mining said copper metal prices hit $4.02 a pound, down 6 percent from $4.26 a pound in the previous year.

Average gold prices, however, were relatively flat at $1,804 per ounce from $1,802 per ounce. Cash cost, which refers to expenses paid in cash, surged by 38 percent to P12.3 billion from P8.95 billion. Even so, in terms of production, tonnage milled by CCC decreased by 8 percent to 16.85 million tons while the number of shipments remained at 29 for the reference period.

“CCC was also able to pay its loan obligations amounting to $97.6 million coming from internally generated cash,” it added.

The Atlas Mining unit has the exclusive operating rights on the mineral resources and ore reserves of Carmen, Lutopan and Biga mineral deposits, collectively known as Toledo copper mine in Cebu covering 1,674 hectares.

Meanwhile, earnings before interest, tax, depreciation and amortization dwindled by 45 percent to P5.4 billion from P9.7 billion.

Atlas Mining, among the largest copper producer here and abroad, is a diversified natural resource-based company with significant holdings of mineral resources in the Philippines.