Atlas Consolidated Mining and Development Corporation (Atlas Mining) reported a net loss of PHP 231 million for 2024, a sharp reversal from its PHP 1.12 billion profit in 2023, driven by lower copper production and rising costs at its Carmen Copper operations. Amid these financial challenges, the company’s Board of Directors has suspended plans to dissolve two wholly owned subsidiaries, AquAtlas, Inc. and Atlas Exploration, Inc., as it reassesses their financial obligations and strategic roles.
In a disclosure with the Philippine Stock Exchange, Atlas Mining said its revenues fell 6% to PHP 18.76 billion from PHP 19.91 billion in 2023, while earnings before interest, taxes, depreciation, and amortization (EBITDA) dropped 21% to PHP 5.31 billion from PHP 6.70 billion. Core income swung from a PHP 865 million profit to an PHP 820 million loss, marking a 195% decline year-on-year.
The downturn stems largely from operational setbacks at Carmen Copper, the company’s flagship mining asset in Toledo City, Cebu. Despite an 8% increase in milling tonnage to 18.18 million dry metric tons (dmt) and a daily milling average of 49,668 dmt, ore grades plummeted 22% to 0.205% from 0.265%. This led to a 17% drop in copper metal production to 70.19 million pounds and an 8% decline in gold output to 24,545 ounces.
Copper concentrate production remained steady at 152,000 dmt, but shipments reflected the lower metal content, with copper sold falling 17% to 69.28 million pounds and payable gold ounces decreasing 10% to 22,736 ounces.
Rising costs compounded the issue. Cash costs (C1) increased 18% to USD 2.48 per pound of copper from USD 2.11, while fully loaded costs (C3), including depreciation, taxes, and financing charges, rose 22% to USD 4.13 per pound from USD 3.39. Cash costs alone climbed 2% to PHP 13.42 billion from PHP 13.17 billion, despite higher milling volumes.
Higher metal prices offered some relief but couldn’t stem the losses. Average copper prices rose 7% to USD 4.14 per pound from USD 3.85, and gold prices surged 21% to USD 2,358 per ounce from USD 1,949. However, these gains were insufficient to offset the operational and cost pressures.
In a separate resolution, the board halted the dissolution process for AquAtlas, Inc. and Atlas Exploration, Inc., both 100% owned subsidiaries. AquAtlas manages the Malubog Dam, a vital water resource for Carmen Copper’s industrial needs and Toledo City’s domestic supply, with a surplus capacity of 100,000 cubic meters per day. Atlas Exploration focuses on mineral exploration to enhance the company’s resource base, holding significant mineral rights in Cebu and other regions. The SEC filing noted that the suspension aims to allow a review of the subsidiaries’ “remaining financial obligations,” though specifics were not disclosed.
The company stated that its audited financial results for 2024 will be released later. With 3.56 billion common shares outstanding at a par value of PHP 1.00, Atlas Mining remains a key player in the Philippines’ mining sector, but its latest figures underscore the challenges of maintaining profitability amid declining ore quality and cost inflation. The decision to pause subsidiary closures signals a cautious approach as the company navigates its next steps.
