February 10, 2014

AT to start operations on expanded processing plant in March

In a report to the Exchange, Atlas Mining (AT, NOT RATED) disclosed that its wholly-owned subsidiary yielded positive results on the performance testing of its newly acquired equipment.

Half of the newly installed process circuit was run continuously without hitch for 60 hours while commissioning work on the remaining half of the process will start soon. The expansion project will increase the milling capacity of the existing plant by 50% or to 60,000 tonnes per day from 40,000 tonnes per day.

Our Take: This bodes well for Atlas which should be able to capture more value from ore processing instead of just shipping unprocessed ore. Higher margins arising from the expanded capacity as well as the weaker peso should help cushion the impact of weak metal prices and provide a boost to cash flows and earnings– WealthSec