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Atlas Mining's FY 2013 core income up 4% to Php2.6B, copper plant expansion operational in March
5 March 2014
Manila, Philippines
Atlas Consolidated Mining and Development Corporation ("Atlas Mining") posted a core income of Php2.62 billion in 2013, realizing a 4% year-on-year growth despite lower realized metal prices. Revenues slid slightly by 7% to Php14.45 billion, but such decrease resulting from lower realized metal prices was tempered by an 8% drop in total operating cash costs from Php9.80 billion to Php9.05 billion.
In 2013, Atlas Mining's wholly-owned subsidiary, Carmen Copper Corporation ("Carmen Copper") registered a total production of 91.51 million pounds of copper metal in concentrate, 2% higher year-on-year, and raised its average daily milling capacity by 4% to 43,010 tonnes per day (tpd). In July, Carmen Copper's ore processing plant achieved a record peak milling capacity of 50,000 tpd from its existing nameplate capacity of 40,000 tpd. Throughput was optimized by the introduction of process efficiency enhancements in the existing plant.
The total volume of copper shipments was maintained at 90.56 million pounds of copper metal in concentrate. Shipments of gold metal in concentrate, on the other hand, grew significantly by 51 % to 19,555 ounces, translating to a 25% increase in gold revenues to Php1.14 billion.
The realized price of copper dropped 9% to an average of US$3.30 per pound, while the realized price of gold registered 17% lower at US$1,385 per ounce.
Atlas Mining posted a net income of Php1.90 billion in 2013, 45% lower year-on-year due mainly to the recognition of an unrealized foreign exchange loss of Php1.02 billion on US dollar-denominated debts. In 2012, the Company reported a net income of Php3.43 billion that is partly attributable to the posting of an unrealized foreign exchange gain of Php593 million. The group's debt obligations are mostly US dollar-denominated to match US dollar revenues. This establishes a natural hedge against foreign exchange fluctuations. Thus, when US dollar debts are settled using US dollar cash reserves of the group, there is no realizable foreign exchange effect. (See attachment for additional information on unrealized foreign exchange gain/loss.)
According to Atlas Mining Executive Vice President, Adrian Ramos, "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."
Last year, Atlas Mining embarked on an aggressive program to expand Carmen Copper's existing 40,000 tpd nameplate capacity by 50% to 60,000 tpd with a capital expenditure of about Php5.4 billion. Carmen Copper installed two (2) units of 19x31 (feet) ball mills, four (4) 300-cubic meter rougher flotation tanks and an auxiliary line for primary crushing.
Early last month, Atlas Mining announced that the initial commissioning of the expansion project yielded positive results. Mr. Ramos said, "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 be even more competitive in the future."
Carmen Copper's expanded processing plant is expected to be fully operational within this month.
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