November 18, 2013

AT posts 21% hike in 9M13 core earnings

Atlas Consolidated Mining and Devt Corp (AT, Not rated) announced 9M13 core net income of P2.1b, up 21% YoY despite a 3% YoY decline in revenues to P11b due to lower realized copper metal prices. Reported net income is 20% lower YoY at P1.6b given the unrealized forex losses of P699 vs. the P434m in unrealized forex gains registered in the same period last year. Its wholly-owned Carmen Copper Corp registered total output of 68.9m pounds (+3% YoY) of copper metal concentrate and 15,188 ounces of gold (+50%).

 Our take: Taking out the unrealized forex losses, we thought the earnings growth was remarkable. We also take note of AT’s cash costs which declined 10% YoY to P6.45b. Output is also being ramped up with average daily milling capacity rising to almost 45,000 tonnes per day in 3Q13 vs the 43,462 tonnes per day for the year. As such, copper and gold shipment volumes rose by 23% and 108%, YoY during the quarter .– WealthSec