Atlas Mining trims net loss to Php325M on strength of higher shipment volumes
15 August 2016
Atlas Consolidated Mining and Development Corporation (“Atlas Mining”) reported a lower half year loss of Php 325 million compared to Php611 million in the first six months of 2015 due to improved revenues.
First half revenues expanded by 16% to Php6.1 billion despite lower realized copper prices. Copper revenues grew by 10% to Php5.1 billion and gold revenues grew by 62% to Php1.0 billion on increased volumes and higher gold price.
Copper prices remained weak, with first half average realized copper price at $2.12/lb, 21% lower than $2.67/lb average last year. Average realized gold price improved by 2% to $1,227/oz, compared to $1,201/oz the previous year.
Atlas Mining’s wholly-owned subsidiary Carmen Copper Corporation (“Carmen Copper”) posted copper metal in concentrate of 54.5 million pounds for year-to-date June, 17% higher than the comparative period in 2015. Copper concentrate shipments were 19% higher at 92,100 dry metric tons (dmt). Similarly, copper metal content grew 20% to 54 million pounds of copper metal in concentrate, while gold content jumped 48% to 17,797 ounces.
In response to challenging market conditions, Atlas Mining announced its recovery plan to reduce mill throughput at the Carmen Copper mine from its nameplate capacity of 60,000 tonnes per day (tpd) to 40,000 tpd. The plan also involves reducing stripping capex and operating costs through cost containment initiatives and increased production efficiencies.
With the implementation of the plan underway, second quarter results showed decreased production levels of 24.5 million pounds of copper metal concentrate, down from 29.9 million in the first quarter. Milling tonnage dropped by 9% to 3.9 million tons with average daily throughput of 43,000 tonnes per day (tpd), falling from 54,700 tpd in the first quarter. Copper grade improved to 0.326% from 0.309%, however, and copper recovery remained stable at 87.2% during the quarter.
Meanwhile, average cash cost per pound of copper remained low at US$1.32/lb. for the first half, contracting by 27% from US$1.84/lb. for the same period last year. This was attributed mainly to lower waste charged to operations, bringing waste-to-ore ratio to 1.4:1 in 2016 from 2:1 in 2015.
Atlas Mining continues to optimize operations and cash flows by improving its operational efficiencies and further reducing cash costs in light of low copper prices. Atlas Mining remains steadfast in its commitment as a responsible mining company, protecting and enhancing the environment and assisting in the development of its host and neighboring communities.