Atlas Mining earnings drop in 2022

Atlas Consolidated Mining and Development Corporation, an affiliate of the SM Group, reported a 17 percent drop in net income to P3.2 billion last year from the P3.9 billion it earned in 2021.
In a disclosure to the Philippine Stock Exchange, the fim said its lower profit “was mainly due to the unprecedented spikes in fuel and energy prices that resulted in higher operating and production costs.”
Also contributing to the declines was the “lower production levels brought about by significant heavy rainfall volumes experienced by its wholly-owned operating mine, Carmen Copper Corporation.”
Copper metal price last year stood at $4.02 per pound, lower by 6 percent from $4.26 a pound in 2021 but gold price increased from $1,802 an ounce in 2021 to $1,804 per ounce in 2022.
Earnings before interest, tax, depreciation and amortization (EBITDA) was P5.4 billion for 2022, 45 percent lower compared to P9.7 billion in 2021.
CCC was also able to pay its loan obligations amounting to $97.6 million coming from internally generated cash, Atlas said.
In its third quarter report, Atlas said earnings and revenues were lower on the back of a reduction in copper metal production mainly due to inclement weather experienced during the first four months of 2022 and in the third quarter.
For 2021 Atlas Mining posted a record a record net income of P3.86 billion, 31 times the P118 million it earned in 2020.
The firm said stable production, resilient operation and higher metal prices sustained its turnaround performance.
Metal prices remained high throughout the year, pushing average copper price for 2021 higher by 53 percent to $4.26 per pound and gold price from $1,777 an ounce to $1,802 per ounce compared to 2020.
Atlas Mining's wholly-owned subsidiary, Carmen Copper Corporation, reported higher copper production and shipments in the second half compared to the first half of 2021 due to improvements in copper head grades and recovery.