Atlas Mining swings to P3.97-B Q2 profit on higher metal prices

ATLAS Consolidated Mining and Development Corp. swung to a P3.97-billion net income in the second quarter (Q2) from a P249.56-million net loss a year earlier, supported by higher copper and gold prices. Revenues for the three months ended June rose by 124.9% to P8.99 billion from P4 billion a year earlier, according to the company’s quarterly report filed with the Securities and Exchange Commission (SEC). Average copper prices increased by 38% to $5.97 per pound in the second quarter from $4.32 per pound a year earlier, while average gold prices rose to $4,622 per ounce from $3,112 per ounce. Atlas Mining said higher metal prices contributed positively to its revenue performance and profitability. Net costs and expenses increased by 26.8% to P5.24 billion from P4.13 billion a year earlier. Mining and milling costs rose by 21.1% to P4.38 billion from P3.62 billion, while general and administrative expenses increased by 25.7% to P393.49 million from P313.08 million. Mine product taxes nearly tripled to P352.05 million from P118.57 million, while depletion of mining rights rose to P88.01 million from P83.89 million. The company recorded P369.35 million in net other charges during the quarter, reversing P84.86 million in other income a year earlier. Finance charges eased to P144.39 million from P148.81 million. Atlas Mining also booked a P38.73-million foreign exchange loss, reversing a P87.18-million gain a year earlier, and recorded a P34.88-million fair-value loss on derivatives. These were partly offset by a P554.93-million share in the net income of associates, reversing a P23.29-million share in net losses a year earlier. Income before tax reached P4.09 billion, reversing a P206.05-million pretax loss a year earlier. For the first half, Atlas Mining swung to a P4.62-billion net income from a P653.11-million net loss a year earlier. First-half revenues increased by 68% to P13.72 billion from P8.15 billion, while costs and expenses rose to P9.01 billion from P8.60 billion. The company attributed its improved first-half performance partly to continued mine and mill production under the three-year mine redevelopment program of its wholly owned subsidiary Carmen Copper Corp. (CCC). “Atlas Mining, thru its wholly owned subsidiary, Carmen Copper Corp., now on its final year of the 3-year mine redevelopment program that will be completed by the third quarter of 2026, has continued to progressively expose ore sources for mine and mill production that positively contributed to the improved first half financial performance,” the company said. The pit redevelopment project, which began in the third quarter of 2023, is ongoing and is expected to be completed by the end of the third quarter of 2026. CCC also settled $15 million in debt obligations during the first half in accordance with its payment schedule and is due to make another debt payment in November. Atlas Mining’s cash and cash equivalents stood at P3.56 billion as of June 30, up from P1.02 billion at the end of 2025, while short-term investments increased to P3.80 billion from P1.59 billion. Total assets rose to P74.12 billion from P68.37 billion, while total liabilities declined to P21.68 billion from P21.85 billion. — Marron Joshua F. Mendoza