Atlas Mining in the red in 9 months

MANILA, Philippines - Atlas Mining and Development Corp. incurred a net loss of P1.3 billion in the nine months ending September this year, weighed down by unrealized foreign exchange losses and low metal prices.

The loss for the first three quarters was a reversal of the P841 million net income reported in the same period last year.

Atlas Mining said increased production of copper metal concentrate and improvements in cost efficiency helped offset the impact of low metal prices.

The company incurred P1.1 billion in foreign exchange provisions in the first nine months.

“The company remains naturally hedged as its US dollar denominated loans are matched with its 100 percent dollar denominated revenues,” Atlas Mining said.

Production levels in the company’s wholly-owned Carmen Copper Corp. rose to 26.9 million pounds in the third quarter from 24 million pounds in the second quarter.

Copper grade in the third quarter also improved to 0.305 percent from 0.299 percent in the second quarter and copper recovery improved to 86.2 percent from 84.6 percent in the second quarter.

Milling tonnage also expanded in the third quarter “with average daily throughput benefitting from improvements in maintenance and process efficiencies” to deliver 50,537 tons per day (tpd), up from 47,227 tpd in the previous quarter.

Copper prices remained low during the nine month period at $2.57 per pound, 19 percent lower than $3.16 per pound during the previous year.

Likewise, the average realized gold price fell by nine percent to $1,171 per ounce from $1,290 per ounce.