Trade Atlas Consolidated Mining and Development Corporation
Target Price: P9.05

For Q1 of 2021, AT’s gross revenues declined by 11.5% y/y to P3.58 billion amid the lower production and shipment of copper and gold. The decline was tempered by the rise in copper and gold prices by 55.3% y/y to $3.93/lb and 14.2% y/y to $1,797/oz. The company was able to manage production costs properly allowing its EBITDA to rise 3.4% y/y to P1.68 billion. It was able to register a core net income of P579 million, up by 412.4% y/y. Meanwhile its net income for the quarter came in at P420 million, a turnaround from the same period last year’s P37 million net loss. (PSE Edge)

Moving forward, the recovery in the global economy may boost demand for AT’s mineral exports which in turn could help sustain its good bottomline performance in the succeeding quarters. Copper prices in the global market are also rallying which in turn is seen to give boost to AT’s revenues from its copper mining operations. Gold prices on the other hand are also trying to regain its momentum after hitting a low of $1,676.91/oz. in March 8, 2021. Still, it is on a downtrend based on its movement from its peak in August 7, 2020, of $2,075.14/oz. Another risk for AT is if its volume of production continues to narrow in the succeeding quarters.

Last week, AT’s share bounced from its 7.85 support, and immediately regained its ground above its 10-day exponential moving average (EMA), after falling from its year-to-date high of 8.85 reached last April 30, 2021. With the share supported by its 10-day EMA, AT may try another climb towards its resistance at 9.05. Its MACD line remains above the signal line implying that there is still bullish momentum. This momentum is seen to be weakening however as the MACD line is already declining and is narrowing its gap with the signal line. We may pick up AT shares once it nears or is at its 10-
day EMA which last week closed at 8.06. Remember to set a cut loss point 5% below your acquisition.

Material in this article is obtained from sources we believe to be reliable, but its reliability or precision cannot be guaranteed. This is for the sole purpose of providing details and does not provide an offer from us to buy or sell securities mentioned in this document.

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