Manila, Philippines - Atlas Consolidated Mining & Development Corp. reported a sharp decline in its first quarter net earnings, mainly due to lower sales of copper and increased costs.
In a financial report filed with the Philippine Stock Exchange, Atlas said its net income plunged to P267.41 million compared with P704.71 million the previous year-period.
The drop in profit was also attributed to a realized mark-to-market loss amounting to P155 million and a derivative loss of P51 million on the exercise of the option to effect full settlement of certain loan obligations prior to their maturity.
Consolidated revenues amounted to P3.23 billion, about the same level as last year.
Operating income slid 65 percent to P2.58 billion as cost and operating expenses expanded 38 percent to P2.58 billion.
Notwithstanding the decline in copper price, Atlas unit Carmen Copper Corp. earned P332 million as it generated P3.007 billion from the sale of copper. Sale of gold, on the other hand, amounted to P194 million.
During the period under review, Carmen Copper effected seven shipments of copper concentrate totaling 34,398 dry metric tons to Chinese smelters.
Atlas also benefitted from the P184.5 million contribution of its nickel project which continues to be pursued by Berong Nickel Corp. since resuming mining operations last year.
“Atlas, through Carmen Copper, has begun a fully-funded, aggressive expansion program aimed at increasing productivity in a cost-efficient manner.