Atlas Mining profit surges to P7.57B as copper prices rise, costs fall

ATLAS Consolidated Mining and Development Corp.’s net income surged to P7.57 billion in the third quarter from P218 million a year earlier, amid higher copper prices, lower unit production costs, and increased metal output.

In a regulatory filing on Monday, the listed mining company reported core income of P6.65 billion, up from P97 million in the comparable period last year.

Gross revenues increased by 74% to P22.34 billion from P12.86 billion, while earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 179% to P12.29 billion from P4.41 billion, according to the company’s unaudited financial summary.

Atlas Mining reported that the average invoiced price of copper increased by 41% to $6.15 per pound from $4.37 per pound, while the average gold price rose by 38.51% to $4,494 per ounce from $3,245 per ounce.

Meanwhile, the company’s C1 copper production cost declined by 33% to $1.53 per pound from $2.28 per pound.

The C1 measure covers production, general and administrative, smelting, and related costs, less by-product credits.

At its Carmen Copper operations, copper metal production increased by 16% to 51.65 million pounds from 44.63 million pounds, even as milling volume declined by 3% to 12.39 million dry metric tons (DMT) from 12.82 million DMT.

The average copper ore grade improved to 0.219% from 0.186%, while copper concentrate production rose by 21% to 124,000 DMT from 102,000 DMT.

Gold production increased by 14% to 15,242 ounces from 13,385 ounces.

Copper concentrate shipments reached 124,000 DMT, up by 21%, while copper metal shipments increased by 16% to 50.66 million pounds.

Gold shipments rose by 13% to 13,874 payable ounces.

Cash costs increased by 24% to P10.45 billion from P8.41 billion, according to the company.

Separately, Atlas Mining said its board approved P1.5 billion in cash dividends, equivalent to P0.42 per common share, during its regular meeting on Oct. 16.

The dividends, which the company said would be sourced mainly from cash generated from operations, will be payable on Dec. 10 to shareholders of record as of Nov. 12.

Atlas Mining shares rose by 2.38%, or 44 centavos, to close at P18.94 apiece on Monday. — Alexandria Grace C. Magno