The Company boosted its ownership in Atlas Consolidated Mining & Development Corporation from 11.67% to 13.12% with the acquisition of additional shares arising from the conversion of its US$11.5 million loan into Atlas equity.

Atlas subsidiary, Carmen Copper Corporation (CCC), shipped a total of 98,206 dry metric tons (dmt) of copper concentrate to China and Korea and posted a net income of P670 million in 2010, a turnaround from 2009’s net loss of P1,662 million. Assuming stable copper prices, CCC’s improvements in production, milling capacity and power cost are expected to contribute towards enhancing CCC’s performance for the ensuing years.

Another Atlas subsidiary, Berong Nickel Corporation (BNC), remained under Care & Maintenance and its mining operations temporarily discontinued due to low nickel prices and demand in 2010. However, last March 2011, BNC stockholders approved the resumption of direct ore shipping operations due to improved nickel prices.

The Company owns 25.62% of United Paragon Mining Corporation (UPMC) which holds highly prospective gold
mining properties in the Bicol area. UPMC posted a net loss of P35.5 million in 2010 as its mining and milling operations remain suspended. Nevertheless, UPMC continues to seek funding for the re-opening and rehabilitation of its mine from prospective local and foreign investors.

In Oil Exploration, the Company continues to hold participating interests in highly prospective areas in the Philippines including: (a) Service Contract 6A (Octon), where the Operator is actively seeking farminees into the block; (b) Service Contract No. 53 (Onshore Mindoro), where the interpretation of onshore seismic data and reprocessing of offshore seismic data continue; and (c) Service Contract No. 14 (Tara), where the farmin of Peak Oil, Blade Petroleum and Venturoil into the block has been submitted to the Department of Energy (DOE) for approval. The Company also owns a 1.68% interest in The Philodrill Corporation, a major player in the local oil exploration sector, which posted a net income of P557 million in 2010.

The Company owns 15.79% of North Triangle Depot Commercial Corporation (NTDCC), which owns and operates the TriNoma commercial center in Quezon City. For 2010, NTDCC posted an audited net income of P215.9 million.

The Company continues to maintain a 15.79% equity in Metro Rail Transit Development Corporation (MRT Devco), which owns development rights in the MRT 3 System.

Shang Properties, Inc. (SPI), where the Company maintains 4.5% equity, registered a net income of P1.0 billion for 2010. SPI continues construction of One Shangri-La Place, a high-rise mixed use residential and commercial development project in the bustling Ortigas Center, where about 75% of the units have been sold, and has commenced civil works in Shangri-La at the Fort. SPI recently completed and sold out The St. Francis Shangri-La Place, a two-tower residential condominium project.

In line with the new Administration’s Public-Private Partnership mandate, the Company continues to explore suitable investments in infrastructure.

The Company is exploring participation in a proposed bulk water/power supply project to be spearheaded by an Atlas subsidiary, AquAtlas, Inc. The project seeks to utilize the existing Malubog Dam in the Toledo mine site of Atlas.

The Company’s 18.6% equity in Metro Rail Transit Holdings, Inc. (MRTHI) remains the subject of an ongoing acquisition offer from Metro Pacifi c Investments Corp. (MPIC). MRTHI owns 84.9% of Metro Rail Transit Holdings II, which owns 100% of Metro Rail Transit Corp. (MRTC), the owner of the MRT 3 System.