MANILA, Philippines – Listed Atlas Consolidated Mining and Development Corp. yesterday reported a 20-percent year-on-year decrease in its net income in the first nine months of the year on unrealized foreign exchange losses on its dollar-denominated debts.
In a regulatory filing, the company reported a net income of P1.63 billion in the first three quarters of the year against P2.04 billion in the comparative period last year.
Atlas said it had unrealized foreign exchange losses of P698.57 million on dollar-denominated debts in the period ending September that resulted from the depreciation of the peso against the dollar during the period. In the same period last year, it has an unrealized foreign exchange gain of P434.47 million as the peso appreciated against the dollar.
Atlas said that without the unrealized foreign exchange loss, the net income for the period would have reached P2.32 billion ending September.
The company’s core income, however, rose 21 percent year-on-year in September to P2.10 billion from the previous P1.74 billion.
Revenues for the period fell three percent year-on-year to P10. 98 billion from the previous P11.36 billion on lower realized copper prices.
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Copper prices averaged at $3.32 per pound during the first three quarters while gold pirces averaged at $1, 431 per ounce, down by eight percent and 13 percent respectively.
Cash costs, however, fell 10 percent to P6. 45 billion from P7.19 billion in the same period last year.
Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose nine percent to P4.53 billion from P4.17 billion.
In the first three quarters of the year, its wholly-owned subsidiary Carmen Copper Corp. (CCC) in Cebu registered a total production of 68.86 million pounds of copper metal concentrate, up by three percent year-on-year.
Gold production increased 50 percent year-on-year to 15,188 ounces.
Average milling capacity in the Toledo mine rose five percent to 43,462 tons per day because of process improvements. As a result, CCC shipped a total of 68.19 million pounds of copper concentrate and 14, 164 ounces of gold, representing increases of three percent and 48 percent year-on-year, respectively.
For the third quarter alone, CCC produced 24.82 million pounds of copper concentrate, up by 14 percent year-on-year. Gold production rose 97 percent to 6,053 ounces. The average milling capacity during the period rose by eight percent from the same period last year to 44, 997 tons per day.
Copper and gold shipment volume rose by 23 percent and 109 percent during the quarter with deliveries of 24.67 million pounds of copper concentrate and 5, 708 ounces of gold.
“The latest result of our operations clearly indicate that we are on the right track in optimizing production and reducing costs,” said Atlas mining executive vice president Adrian Ramos.
“With more efficient operations in place, we are prepared to grow our capacity further as we approach the completion of our expansion project that will generate a target throughput of at least 60,000 tons per day,” he added.