Atlas Consolidated Mining and Development Corp. recorded a P118-million net income last year due to improved production and higher metal prices.

The listed mining firm disclosed in a regulatory filing on Monday that its net income for 2020 is a reversal from the P565-million net loss it had the year earlier.

Revenues last year reached P18.32 billion, a 7% increase from P17.13 billion in 2019, while its earnings before interest, tax, depreciation, and amortization (EBITDA) rose 45.8% year on year to P8.92 billion.

“The improvement in the bottom line is attributed to the sustained stability of operation and production, the significant increase in gold volume, the increase in metal prices in the second half and the decrease in operating costs,” Atlas Mining said in the disclosure.

Gold output of the company’s Cebu-based wholly owned subsidiary, Carmen Copper Corp., reached 47,857 ounces for 2020, a 26.7% increase from 37,786 ounces in 2019.

Carmen Copper also produced 107.09 million pounds of copper metal in 2020, a drop of 0.1% from the 107.24 million pounds it had the year earlier.

“Milling tonnage increased by 5% from 17.57 million tons to 18.37 million tons. On the other hand, copper grades decreased by 5% from 0.319% to 0.304%; while gold grade significantly improved by 31% from 6.24 grams per dry metric tons (DMT) to 8.17 grams per DMT,” Atlas Mining said in the disclosure.

“Copper metal content of concentrate shipped decreased by 4% to 106.07 million pounds, while gold content increased by 23% to 43,480 ounces due to higher gold grade,” it added.

According to Atlas Mining, the average realized copper price for 2020 rose 2.6% to $2.79 per pound, while the average realized gold price also improved 27.5% to $1,777 per ounce.

The company added that cash costs also fell 14.3% year on year to P9.51 billion due to decreases in waste stripping, fuel, power, explosives, and maintenance parts.

Adrian Paulino S. Ramos, Atlas Mining president, said the company had been able to post growth in earnings due to improving metal prices and on the operational improvements it attained over the years.

“We are confident that these improvements will serve as an effective hedge against any downturn in the commodities market. We will continue to focus on operational stability and safety, cost efficiencies, and sustainability,” Mr. Ramos said in the disclosure.

On Monday, shares of Atlas Mining at the stock exchange improved 0.80% or five centavos to finish at P6.29 apiece. — Revin Mikhael D. Ochave

Source: BusinessWorld