Listed firm Atlas Consolidated Mining and Development Corp. on Thursday said its core income dropped by more than a 10th in the first half of the year because of lower realized metal prices.
In a statement, Atlas said its core income reached P1.17 billion in January to June 2013, or 11 percent lower compared to P1.31 billion a year ago.
The company managed to limit the drop in revenues during the first half of 2013 by 14 percent to P7.05 billion, because of the 18-percent drop in total cash costs amounting to P4.31 billion compared to last year’s at P5.26 billion.
For the first half of 2013, Atlas net income reached P750 million, or 52-percent decline from 2012 level due mainly to unrealized foreign exchange losses on dollar-denominated debt.
Without the unrealized foreign exchange losses, net income would have registered at P1.35 billion, the company noted.
“As we recognize the challenges of weaker global commodity prices, we remain focused in our strategy to continually reduce costs, increase production and improve further our operational efficiency,” said Adrian Ramos, Atlas executive vice president.
Atlas’s wholly owned subsidiary, Carmen Copper Corp. (CCC), registered total production of 44 million pounds of copper metal in concentrate for the first half of 2013, 2 percent from last year’s level due to lower ore grade.
“The lower ore grade is a temporary dip in the average grade level as a result of the ongoing development of the Carmen Pit,” Atlas said.
However, Atlas said the daily average milling capacity at Carmen increased by 4 percent year-on-year to 43,000 tons a day as a result of process improvements.
Carmen Copper registered a shipment volume of 43.5 million pounds of gross copper metal in concentrate, 6 percent lower from a year ago. The shipment volume in the first half of 2012 totaled 46.5 million pounds inclusive of inventory carry-over from the second half of 2011.
Meanwhile, gold shipments grew 23 percent year-on-year to 8,457 ounces as a result of higher grade.
Realized copper and gold prices registered lower by 8 percent and 9 percent, respectively. Copper price averaged at $3.37 each pound, while gold price averaged at $1,497 an ounce.