Atlas Mining Recovers and Earns P118 Million in 2020
by March 31, 2021
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Atlas Consolidated Mining and Development Corporation (Atlas Mining) recovered and reported a net income of P118 million in 2020, compared to a net loss of P565 million in 2019.
According to the firm, this is because of the continued stabilization of Atlas Mining's operation and production, as well as the substantial increase in gold output, the increase in metal prices in the second half, and the reduction in operational costs.
Carmen Copper Company, Atlas Mining's wholly-owned subsidiary, announced copper metal output of 107.24 million pounds in 2019 and 107.09 million pounds in 2020 during the time. It increased its gold supply by 27%, from 37,786 ounces to 47,857 ounces.
Higher tonnage milled and higher realized gold grades contributed to the rise in gold production.
From 17.57 million tonnes to 18.37 million tonnes, milling tonnage rose by 5%. Copper grades, on the other hand, declined by 5% from 0.319 per cent to 0.304 per cent, while gold grades rose by 31% from 6.24 grams/dmt to 8.17 grams/dmt.
Because of the higher gold grade, the copper metal content of the concentrate exported declined by 4% to 106.07 million pounds, while the gold content rose by 23% to 43,480 ounces.
Copper price rose by 6% to $2.79/lb in the last quarter, compared to the nine-month realized average price of USD2.64/lb, continuing the upward trend that began in June 2020.
The price of gold increased by 3% in the last year, to USD1,777/oz, compared to a nine-month average of USD1,730.
Year on year, the average realized copper price increased by 2% to USD2.79/lb in 2020, up from USD2.72/lb in 2019. Meanwhile, the average realized gold price increased by 27% to USD1,777/oz in 2020, up from USD1,394 in 2019.
Increased productivity, increased by-product credits from gold attributed to higher gold demand and higher gold prices, and reduced operating costs culminated in a 34 per cent reduction in average cost per pound from USD1.38/lb in 2019 to USD0.90/lb in 2020.
From P11.09 billion in 2019 to P9.51 billion in 2020, cash expenses decreased by 14%.
Large reductions in waste stripping, diesel, electricity, weapons, and repair parts contributed to the drop in cash costs.
Core profits for the year increased by 510 per cent, from P422 million in 2019 to P2.576 billion in 2020.
As a result, the cash raised from operations increased, allowing Atlas Mining to repay $80 million in loans this year, in addition to $52.7 million in 2019.
“We are confident as well 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,” Atlas Mining President Adrian Ramos said.