14 August 2014 Manila, Philippines

Atlas Consolidated Mining and Development Corporation ("Atlas Mining") posted a net income of Php989 million for the first half of 2014, registering a 32% year-on-year growth even with lower realized copper and gold prices as copper, gold and nickel sales volume sustained a growth of 20%, 31 % and 35%, respectively. The increase in sales volume pushed revenues to Php8.7 billion or a 23% increase from last year.

Atlas Mining's wholly-owned subsidiary, Carmen Copper Corporation ("Carmen Copper") registered a 21% increase year-on-year in total production for the first six months of 53.48 million pounds of copper metal in concentrate produced, increased its average daily milling capacity to 48,149 tonnes per day (tpd) and improved its copper recovery to 84%. These production improvements were driven by the copper processing plant expansion that was commissioned in March 2014.

As production increased, total volume of copper shipments likewise rose by 20% to 52.33 million pounds of copper metal in concentrate while gold content was up by 31 %. The increase in shipment volume, however, was tempered by the decrease in realized price of copper which dropped by 7% to an average of US$3.15 per pound, and the decrease in realized price of gold which dropped by 13% to US$1,295 per ounce. Additional revenues from copper of Php500 million should have been realized has copper price remained at last year's level.

Total operating cash costs increased by 29% to Php5.57 billion due the higher volume of operations, higher waste to ore ratio and higher depreciation charges from new assets. However, improving operating productivity resulted to a lower cost per pound of copper in the second quarter which helped contain the increase in cash cost by only 6% from US$1.75/1b to US$1.86/1b for the first half. Total cost increased by 4% from US$2.55/1b to US$2.65/1b.

Additionally, Atlas Mining's performance for the first half got a boost from its nickel subsidiary, Berong Nickel Corporation ("BNC"), which posted 50% increase in its production volume and 35% in its shipment volume resulting to an increase in its revenues by 76%. As earlier disclosed, Atlas Mining will be increasing its direct stake in BNC to 30%.

With the improving results from its copper and nickel operations, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased by 13% to Php3.1 billion. On the other hand, core income decreased by 36% due mainly to the Php431 million income tax provision this year as the income tax holiday incentive of Carmen Copper has already expired.

The Peso strengthened this year against the US Dollar resulting to an unrealized foreign exchange gain of Php285 million compared to the unrealized foreign exchange loss last year of Php600 million.

According to Atlas Mining Executive Vice President, Adrian Ramos, "The first half results show that we are starting to realize the benefits of our investments particularly the newly completed plant expansion project and the advance development of the higher-grade ore body. These give us the confidence that we can further expect improving production and operational efficiencies as the full potential of our expansion is attained."