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12 November 2014

PHILIPPINE STOCK EXCHANGE, INC.


3F Philippine Stock Exchange Plaza
Ayala Triangle, Ayala Avenue
Makati City, 1226 PH

Attention

MS. JANET A. ENCARNACION


Head, Disclosure Department

Subject

3Q14 unaudited Financial and Operating Results

Dear Madam,
Please see attached press release on the unaudited financial and operations results of Atlas
Consolidated Mining and Development Corporation for the third quarter of 2014.

Very truly yours,

CARMEN-ROSE A. BASALLO-ESTAMPADOR
Compliance Officer

PRESS RELEASE

Atlas Minings revenues up 15% to Php12.6Bn as production


continues to improve with expanded processing capacity
12 November 2014
Manila, Philippines

Atlas Consolidated Mining and Development Corporation (Atlas Mining) reported revenues of
Php12.6 billion during the first nine months of the year, 15% higher versus the same period last year,
driven mainly by the increase in revenues from copper, gold and nickel. Revenues increased despite
lower realized copper and gold prices as sales volume remained resilient with copper, gold and nickel
output accelerating by 12%, 18% and 41%, respectively.
Atlas Minings wholly-owned subsidiary, Carmen Copper Corporation (Carmen Copper), sustained
its production ramp-up after the commissioning of the expanded processing plant in March this year
with a 3rd quarter production of 27.9 million pounds of copper metal in concentrate. This brings
year-to-date production to 81.4 million pounds of copper metal in concentrate which translates into
an 18% increase from the same period last year. As it continues to improve the process flow of its
expanded plant, Carmen Copper registered its highest average daily milling throughput in July at
57,000 tonnes per day reaching its expanded nameplate milling capacity of 60,000 tonnes per day for
the most part of the month of July. The unusually higher levels of rainfall during the 3rd quarter
required a change in the mine plan sometime in August that moved most mining operations to the
higher benches as a safety precautionary measure. With the change in the mine plan which affected
the grades and ore output, management decided to also catch up with regular maintenance work
including those scheduled for the first quarter of 2015.
With improved production, total volume of copper shipments increased by 15% to 78.10 million
pounds of copper metal in concentrate, while gold content was up by 25%. However, the revenue
impact of increased shipment volume was tempered by the lower realized prices of copper and gold.
Copper prices were down 5%, hovering at an average of US$3.16 per pound, while gold dropped by
10% to US$1,290 per ounce. Had the copper and gold prices remained at last years level, additional
revenues of about Php630 million should have been realized this year.
Due to the higher level of production and shipments, total operating cash costs rose by 25% to
Php8.09 billion. Nevertheless, operating efficiency was sustained as average cash cost per pound of
copper increased by only 13% from US$1.66/lb to US$1.86/lb, which is attributable mostly to higher
smelting fees and higher accounting charges for waste stripping to align with the average waste-toore ratio over the life of the mine. Total cost also increased by 10% from US$2.42/lb to US$2.67/lb
with higher depreciation and financing charges in 2014.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by only 3% to
Php4.7 billion as the decreases in copper and gold prices offset the increases in shipment volume.
Atlas Minings performance in the first three quarters got a boost from its nickel subsidiary Berong
Nickel Corporation (BNC), which grew its net income sixteen-fold to Php471 million. BNCs
production volume spiked, growing almost double to 1.1 million wet metric tons, while shipments
surged 74% resulting in a significant increase in revenues to P2.0 billion.

While EBITDA was sustained on account of increasing volume, net income narrowed to Php841
million in the first nine months due to higher depreciation and financing charges, and higher income
tax provision this year on account of the expiration of the income tax holiday incentive of Carmen
Copper in October 2013. Financing charges increased this year as a portion of the financing costs
was capitalized during the construction phase of the expansion project last year.
According to Atlas Mining Executive Vice President, Mr. Adrian Ramos, We are confident that we
have positioned the company for a solid performance in 2015 and the coming years with the
completion and commissioning of Carmen Coppers processing plant and the transition to the highergrade-orebody. We commissioned the processing plant in March and have finally confirmed its
nameplate capacity of 60,000 tons per day in July. Pre-stripping of the Carmen open pit mine which
contains higher-grade-ore has advanced to a stage that will enable 100% ore feed from the Carmen
orebody by January 2015. For the rest of the year, we have decided to focus on addressing process
flow efficiency enhancements and to perform key regular maintenance work in our thrust to achieve
the optimal throughput needed to further increase earnings and bring down cash costs next year.
While this will affect our net income guidance this year, Atlas Mining is well prepared for 2015 where
we expect to realize the full benefits of the expansion projects.

ATLAS CONSOLIDATED MINING AND DEVELOPMENT CORPORATION


UNAUDITED FINANCIAL AND OPERATING HIGHLIGHTS
YEAR-TO-DATE SEPTEMBER 2014
ATLAS MINING SUMMARY OF FINANCIAL RESULTS
Year-on-Year (In Million Pesos)

YTD SEP 2013

YTD SEP 2014

Change

10,977

12,590

+15%

Total Cash Cost

6,449

8,078

+25%

EBITDA

4,528

4,658

+3%

Net Income

1,626

841

-48%

Core Income*

2,102

1,011

-52%

Revenues

*Net income after tax adjusted for non-recurring items such as foreign exchange and mark-to-market
adjustments.
CARMEN COPPER SUMMARY OF OPERATIONS
Year-on-Year

YTD SEP 2013

YTD SEP 2014

11,865
43,462
0.322%
117
68.86
15,188

13,452
49,273
.324%
137
81.34
19,969

+13%
+13%
+1%
+17%
+18%
+31%

24.50
116
68.19
14,164

27.5
132
78.10
17,676

+12%
+14%
+15%
+25%

YTD SEP 2013

YTD SEP 2014

Change

C1 cash cost

1.66

1.86

+13%

C2 cash cost
C3 cash cost

2.09
2.42

2.34
2.67

+12%
+10%

Production
Milling Tonnage (000 dmt)
Daily Milling Average (dmt per day)
Ore Grade
Copper Concentrate (000 dmt)
Copper Metal Gross (in million lbs)
Gold (ounces)
Shipment
Number of Shipments
Copper Concentrate (000 dmt)
Copper Metal Gross (in million lbs)
Gold (payable ounces)

Change

CARMEN COPPER SUMMARY OF COSTS


Year-on-Year (US$/lb Cu)

C1 = Production cost, G&A, smelting and related charges less by-product credits, C2 = C1 +
depreciation and depletion costs, C3 = C2 + mine product tax and royalties, financing charges net of
interest income, hedging cost and other charges
METAL PRICES (AVERAGE INVOICED PRICE)
Year-on-Year
Copper (US$/lb)
Gold (US$/ounce)

For further information, please contact:


Joanne M. Villanueva
Investor Relations
+632 5849788 local 135
jmvillanueva@atlasphilippines.com

YTD SEP 2013

YTD SEP 2014

Change

3.32

3.16

-5%

1,431

1,290

-10%