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ATLAS Consolidated Mining and Development Corp. told
the Philippine Stock Exchange that it incurred losses during the
first quarter due to lower nickel sales from its subsidiary, Berong
Nickel Corp. (BNC).
In its report, Atlas said it
registered a net loss of P225 million, or P169 million higher than a
year ago as consolidated revenues plunged 188 percent to P92
million. The company blamed the “excessive rainfall [at] BNC’s
mine site” for the lower nickel ore mined, which resulted in the
drop in the sales volume.
Operating expenses rose 16
percent to P276 million due to the increased activities connected to
the rehabilitation at Atlas’ copper subsidiary, Carmen Copper
Corp. (CCC). In addition, unrealized foreign exchange losses of P42
million were also incurred as the peso weakened from 41.28 to the
dollar at end-December to 41.868 at end-March.
Atlas also saw its accounts
receivables jump 91 percent to P168.5 million due to unpaid nickel
ore deliveries. Inventories went up 31 percent to P202.2 million as
BNC stockpiled beneficiated nickel silicate ore while its
subsidiaries procured supplies and materials. Prepayments and other
current assets rose by 3.2 times to P1.18 billion due to the
additional recognition of input tax receivables and deposits to
suppliers and advances to service contractors.
Trade and other payables were
trimmed by 13.7 percent to P1.266 billion because of the payments
CCC made to its creditors and suppliers. Advances from related
parties rose 16.4 percent due to additional non-interest bearing
cash advances extended for administrative and operating expenses of
subsidiaries.
Long-term debt declined by 1.42
percent due to the restatement of foreign currency denominated loans
at a lower exchange rate than previously recorded. Atlas’ current
ratio improved to 2.345:1 at end-March from 2.835:1 at end-December.
The company’s other
majority-owned subsidiaries like CCC, Aquatlas Inc., Ulugan
Resources Holdings Inc., Atlas Exploration Inc. and Amosite Holdings
Inc. have yet to operate.
Two months ago, CCC signed a
power supply agreement with the National Power Corp. (Napocor) to
supply electricity to its mine in Don Andres Soriano, Toledo City
from 2008 to 2011. For three years, Napocor will supply CCC about 40
megawatts from the excess power generated by the Leyte geothermal
power plants of Philippine National Oil Co.-Energy Development Corp.
This is after the National Transmission Corp. (Transco) raises the
capacity of its Leyte-Cebu submarine cables, which are currently
limited to 360 megawatts.
At present, CCC is rehabilitating
its copper mine in Toledo City. The mine is expected to have an
output of 42,000 metric tons per day and would be exporting its
first shipment of copper concentrate by the third quarter of this
year. Expected average annual copper production from Toledo is
47,000 tons, along with gold, silver, iron ore magnetite and pyrite
by-products.
 --Likha
C. Cuevas-Miel
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