SM Investments Corp. (SMIC) is reviewing its stake in Atlas Consolidated Mining and Development Corp. as part of an ongoing assessment of whether the mining firm still fits within the conglomerate’s investment portfolio.
Speaking at a briefing on March 2, as reported by the Manila Bulletin, SMIC President and Chief Executive Officer Frederic C. DyBuncio said the company’s board has been discussing the possibility of reducing its exposure to Atlas or even potentially removing it from the group’s portfolio.
“That’s something which we have been discussing at the board level—whether we want to take out Atlas from the portfolio or not,” DyBuncio told reporters.
In a clarification filed with the Philippine Stock Exchange, however, SMIC said it is only evaluating its options and that no firm discussions or decisions regarding a divestment have taken place.
The company noted that it is considering reducing its stake in or exiting Atlas, but emphasized that discussions remain preliminary.
DyBuncio explained that Atlas Mining is viewed as an “outlier” within the SM group, whose businesses are typically built around synergies across retail, banking, and property.
Because the mining operations do not integrate into that broader ecosystem, the board has been studying whether the investment still aligns with the conglomerate’s long-term strategy.
The review comes as Atlas Mining faces weaker financial performance.
For the first nine months of 2025, the company reported an 81% decline in consolidated net income to PHP 218 million from PHP 1.13 billion in the same period the previous year.
Gross revenues also fell 17% to PHP 12.86 billion despite higher metal prices, while EBITDA declined to PHP 4.41 billion from PHP 5.13 billion a year earlier.
Operational challenges have largely been linked to a three-year redevelopment program at Carmen Copper Corp., Atlas’s main subsidiary, which is expected to run until mid-2026 and has temporarily constrained production.
Atlas’s results were further affected by losses from its associate Berong Nickel Corp., where the company recorded a PHP 53.39 million share in losses during the period.
As SMIC continues to evaluate the role of Atlas within its portfolio, any eventual reduction or exit could reshape ownership in one of the Philippines’ major copper mining companies.
The key question now is whether the conglomerate will ultimately divest the asset or maintain its stake while Atlas works through its redevelopment program.
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