Atlas Mining trims Q1 loss to P135 M

Atlas Consolidated Mining and Development Corp. has trimmed its net loss to P135 million in the first quarter, largely due to higher shipment volume.

The loss for the JanuaryMarch 2016 period is almost 80 percent lower than the P637 million loss incurred in the same period last year.

The company attributed the lower net loss to higher revenues of P3.4 billion, up 27 percent as shipment volume increased 38 percent.

Production levels in the company’s wholly- owned Carmen Copper Corp. rose to 30 million pounds spurred by higher head grade, continuous improvement in copper recovery and increased milling tonnage.

Milling tonnage also expanded 20 percent to five million tons as average daily throughput delivered 54,745 tons per day (tpd) during the quarter.

Copper prices remained low this quarter at $2.10 per pound, down 19 percent from $ 2.6 per pound a year ago on lingering concerns about China.

Meanwhile, the average realized gold price was relatively flat at $1,198 per ounce from $1,214 per ounce the previous year.

Atlas has cut its capital expenditures to $ 27 million this year from the original planned spending of $104 million as it decided to reduce mill throughput.

The company reduced mill throughput at the Carmen Copper Mine in Cebu to 40,000 tpd from its nameplate capacity of 60,000 tpd.

Despite the challenging backdrop for Atlas, Atlas remains positive about the long term outlook for copper.

Based on forecasts, the current down cycle is expected to be reversed this year until 2017 and low prices will improve as large producers are closing mines, and global demand continues to grow at a steady pace.