Atlas Mining third-quarter profit jumps as copper prices rise and costs fall

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Atlas Mining Q3 profit jump

Highlights

Atlas Mining Q3 net income surges to P7.57 billion from P218 million, driven by higher copper prices and 33% lower C1 production cost.
Gross revenues grow 74% to P22.34 billion, average copper price rises 41% to $6.15/lb, and copper concentrate production increases 21% to 124,000 dry metric tons.
Board approves P1.5 billion cash dividends (P0.42 per share), with shares closing 2.38% higher at P18.94 following the earnings and payout news.

Third-quarter earnings and operating drivers

As reported by BusinessWorld, citing a regulatory filing, Atlas Consolidated Mining and Development Corp. says net income reaches P7.57 billion in the third quarter, up from P218 million a year earlier, while core income climbs to P6.65 billion from P97 million in the comparable period.

Gross revenues rise 74% to P22.34 billion from P12.86 billion, and EBITDA increases 179% to P12.29 billion from P4.41 billion, based on the company’s unaudited financial summary. Atlas Mining says the average invoiced copper price increases 41% to $6.15 per pound from $4.37 per pound, while the average gold price rises 38.51% to $4,494 per ounce from $3,245 per ounce.

The company says its C1 copper production cost declines 33% to $1.53 per pound from $2.28 per pound. Atlas defines the C1 measure as covering production, general and administrative, smelting and related costs, less by-product credits.

At Carmen Copper, copper metal production rises 16% to 51.65 million pounds from 44.63 million pounds, even as milling volume slips 3% to 12.39 million dry metric tons from 12.82 million. Average copper ore grade improves to 0.219% from 0.186%, copper concentrate production increases 21% to 124,000 dry metric tons from 102,000, and gold production grows 14% to 15,242 ounces from 13,385 ounces.

Dividend payout and market response

Copper concentrate shipments reach 124,000 dry metric tons, up 21%, while copper metal shipments increase 16% to 50.66 million pounds. Gold shipments rise 13% to 13,874 payable ounces, although cash costs also move higher by 24% to P10.45 billion from P8.41 billion.

Separately, Atlas Mining says its board approves P1.5 billion in cash dividends, equivalent to P0.42 per common share, at its regular meeting on Oct. 16. The dividends, which the company says will be sourced mainly from cash generated from operations, are payable on Dec. 10 to shareholders of record as of Nov. 12.

Shares in Atlas Mining close 2.38% higher, or 44 centavos up, at P18.94 apiece on Monday, reflecting investor response to the stronger quarterly performance and dividend announcement.

Our earlier article on the Philippine stock market rebound amid peso weakness outlined how the PSEi recovered after early losses as investors returned to beaten-down names on bargain hunting. It also noted the peso’s slide to a fresh record low versus the U.S. dollar and highlighted a shift back to net foreign buying, even as overall sentiment stayed cautious due to currency pressure.

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