Atlas posts P1.9-B net income

MANILA, Philippines - Net income of Atlas Consolidated Mining and Development Corp. declined 45 percent in 2013 from a year ago on unrealised foreign exchange losses.

In a disclosure to the Philippine Stock Exchange, Atlas said it posted a net income of P1.90 billion last year, down from the P3.43 billion in 2012.

The miner said the lower net income year-on-year is “due mainly to the recognition of an unrealized foreign exchange loss of P1.02 billion on US dollar denominated debts.”

Without the effect of the unrealized foreign exchange loss, Atlas’ net income would have reached P2.92 billion in 2013 and P2.84 billion in 2012, translating to a three percent increase year-on-year.

While its net income went down in 2013, the company’s core income rose four percent to P2.62 billion last year from P2.53 billion in 2012.

“Our strategy to optimize production and reduce cost is paying off as we are able to grow our core income in 2013 despite weaker metal prices,” Atlas executive vice president Adrian Ramos said.

The miner poured in P5.4 billion last year to expand the existing 40,000 tons per day (tpd) capacity by 50 percent to 60,000 tpd of wholly-owned subsidiary Carmen Copper Corp.

Revenues from sales of copper and gold slid seven percent to P14.45 billion in 2013 from P15.54 billion a year ago amid lower metal prices.

The realized price of copper dropped nine percent to $3.30 per pound from last year, while the price of gold was at $1,385 per ounce, 17 percent lower year-on-year.

Carmen Copper’s total output climbed two percent year-on-year to 91.51 million pounds of copper metal concentrate in 2013.

Copper shipments, which reached 90.56 million pounds in 2013, were unchanged from a year ago.

Shipments of gold metal in concentrate meanwhile, grew 51 percent to 19,555 ounces.

With Carmen Copper’s expanded processing plant expected to be fully operational within the month, the miner has a positive outlook.

“We are very excited as we near the completion of our expansion

project. With a higher production capacity, we will achieve economies of scale that will position us to even be more competitive in the future,” Ramos said.