Atlas Cons. Mining and Dev’t Corp. (PSE: AT)

Business Profile

Atlas Consolidated mining and Development Corporation (AT, the “Company”) was incorporated on March 9, 1935. The Company’s copper mining operations which started in 1955 are located in Toledo City, Cebu.

In 1993, a strong typhoon damaged AT’s mining facilities forcing it to shut down in early 1994. In September 2007, Carmen Copper Corporation (CCC), started rehabilitation of AT’s mine assets. In July 2008, AT’s mining operations commenced.

Below is AT’s corporate structure:
AT3

Below is the detail of the Company’s Mineral Production Sharing Agreements (MPSA):

AT4

AT generates majority of its revenues through its wholly owned subsidiary, CCC. CCC exports 100% of its copper production to smelters in China and South Korea pursuant to offtake agreements with MRI Trading AG (MRI). Selling prices of CCC’s copper exports are entered into price fixing arrangements based on the average of the prices quoted at the London Metal Exchange over a stipulated quotation period, unless MRI exercises its option to fix the price by agreement with CCC.

On a press release in November 15, 2012, [1] AT’s Executive Vice-President, Mr. Adrian Ramos was quoted saying that the increase of throughput from 40,000 tonnes to 60,000 tonnes of copper ore per day will be attained by the second quarter of 2013.

Comments:

AT’s attraction are mainly from its planned increase in production, immunity to any hikes in mining taxes due to its young MPSAs,  transition into mining of high grade ore,[2] and the favorable prospects of the copper commodity.

Copper prices have been rising again due to China buying more of the metal.

AT5

Other data:

AT2

AT1

Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell.

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One thought on “Atlas Cons. Mining and Dev’t Corp. (PSE: AT)

  1. Pingback: Learning from Tycoons, Mike Ferrer, Stock thoughts: EDC, AT, MER, VITA | Fundamental Enthusiast

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