Atlas Mining swings to profit in Q1 on higher metal prices

ATLAS Consolidated Mining and Development Corp. reported a net income of P645 million for the first quarter (Q1), reversing a net loss of P404 million a year earlier, as higher gold and copper prices offset lower output.

In a disclosure on Tuesday, the listed miner said revenues rose 11% to P4.51 billion.

The company said cash costs in the first quarter increased 25% to P3.08 billion from P2.32 billion a year earlier.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) more than doubled to P2.17 billion from P976 million last year.

“This higher income was mainly due to higher revenue resulting from higher metal prices as well as higher copper grades and strict implementation of production efficiencies through prudent application of cash for operations spending by its wholly-owned subsidiary Carmen Copper Corp.,” the company said.

Atlas Mining said its unit Carmen Copper Corp. produced 26,000 dry metric tons (DMT) of copper concentrate, down 19% from 32,000 DMT a year earlier.

Gold production also declined 46% to 2,370 ounces from 4,369 ounces previously.

Higher metal prices, however, offset the decline in copper and gold output.

The average price of copper rose 34% to $5.77 per pound from $4.31 previously.

Gold prices averaged $4,895 per ounce, 68% higher than $2,906 a year earlier. — Vonn Andrei E. Villamiel