Atacama Minerals Corp. (TSX-V:AAM) suffered a drop in earnings last year despite recording stronger sales growth.
Revenue for the Vancouver-based iodine producer, which operates in Chile, increased to US$25.2 million in 2007 from US$18.8 million in 2006. Higher sales and iodine prices contributed to the higher revenue. Despite that 34% increase, however, Atacama's income dropped 21%, to US$1.9 million from US$2.4 million in 2006.
Atacama attributes the drop to a 60% jump in the cost of goods and higher costs for fuel, sulphur, sulphuric acid and other operating supplies.
A 9% drop in value of the U.S. dollar compared with the Chilean peso added to labour and supply costs, which are bought locally with pesos.
Atacama's share price range during the week: between $0.95 and $0.87; 52-week high: $1.59; 52-week low: $0.68.