Atlas’ losses
ATLAS Consolidated Mining and Development Corporation (“Atlas Mining”) reported a net loss of P637 million, as revenues contracted by 28 percent to P2.6 billion for the first quarter of 2015. The decline in revenues is attributed mainly to lower realized metal prices.
The sharp decline in copper prices starting in January resulted to $2.60/lb average realized copper price, 18 percent lower year-on-year from $3.19/lb in the first quarter 2014. Likewise, the average realized gold price dropped six percent to $1,214/oz from $1,290/oz the previous year. The lower realized metal prices accounted for around 74 percent of the decline in revenues.
Copper production of Atlas Mining’s whollyowned subsidiary Carmen Copper Corporation (“Carmen Copper”) decreased by eight percent to 22.4 million pounds of copper metal in concentrate due to unusually heavy rainfall, pit slope ground movement, necessary maintenance activities and the continuing process optimization of the expanded processing plant. These factors reduced average daily throughput to 45,960 tons per day (tpd) from 47,743 tpd for the same period last year. The realized copper grade was also lower by nine percent at 0.285 percent as mining operations were temporarily shifted to higher benches with lower grade ore.
Total volume of copper concentrate shipments dropped by five percent to 38,400 dry metric tons (dmt) during the quarter. Copper metal content decreased by five percent to 22.4 million pounds of copper metal in concentrate, while gold content was up 14 percent to 5,758 ounces. The impact of lower volume shipped represented around 14 percent of the decline in revenues.
According to Atlas Mining president Adrian Ramos, “Our results were severely impacted by low copper prices, which we were not yet able to mitigate through higher production levels as we are currently focusing on key process enhancements and maintenance of our plant and mining equipment. As earlier reported, Carmen Copper further strengthened its management with the appointment of Enrico Nera as EVP-operations & COO effective April this year. We are confident that the process enhancements, sustained maintenance activities and stronger management will result in attaining consistently higher production levels and contributing to reducing operating cost in coming months.”