MANILA – Atlas Consolidated Mining and Development Corp. reported a significant drop in its net income in 2014 due to lower metal prices and higher depreciation, financing, and income tax charges.
Atlas Mining said last year’s consolidated net income plunged to P397 million from the P1.9 billion posted in 2013.
The firm attributed the drop to “the collective effect of lower prices, increased depreciation, higher financing charges, and the higher income tax provision in 2014 following the expiration of the income tax holiday incentive of Carmen Copper in October 2013.”
"2014 challenged Atlas Mining to manage the constraints on the optimization of its expanded processing plant and the effects of uncontrollable events such as the drop in world copper prices and unusual weather phenomena. This year, to reinforce our resilience, the Atlas Mining team will focus on maximizing efficiencies to reduce operating costs, and on enhancing risk mitigation systems,” Atlas Mining executive vice president Adrian Ramos said in a statement.
Atlas Mining’s revenues in 2014 increased by 12 percent to P16 billion driven by higher production and shipment volumes.
It added that despite lower realized metal prices, copper revenues grew by 10 percent to P13.7 billion as concentrate shipments grew by 14 percent in 2014. Copper accounts for 85 percent of total revenues.
Gold revenues also grew by 17 percent to P1.3 billion.
Total operating cash costs likewise increased by 23 percent to P11.2 billion due to higher production and shipment levels.
Total cost also increased by 16 percent from $2.44/lb to $2.83/lb because of higher depreciation from new assets and higher financing charges.
“The cost efficiencies will be realized as Carmen Copper continues to optimize its expanded plant,” the firm said.