SM Investments shifts capital away from mining as Atlas exit nears

Conglomerate looks to renewable energy and logistics to offset revenue impact.

As SM Investments Corp. (SMIC) prepares to exit the mining industry through its planned divestment from Atlas Consolidated Mining and Development Corporation by 2027, the conglomerate is cashing out of a profitable but strategically out-of-place investment and redirecting its portfolio toward businesses that fit better with the group’s broader ecosystem.

The decision comes even as Atlas is enjoying a strong run, with its revenue and profits surging on higher copper prices and improved ore grades. For SMIC, however, the issue is less about Atlas’ performance and more about where mining fits in the conglomerate’s long-term portfolio.

Exiting the mining industry would inevitably bring down profits for the SM parent company amid significant gains from Atlas over the past six months, SMIC president and chief executive officer Frederic DyBuncio admitted. But the company sees an opportunity to monetize its stake while copper prices are strong and redirect capital toward businesses it considers more closely aligned with its portfolio, particularly renewable energy and logistics.

Atlas made ₱13 billion in revenue from January to June 2026, growing 64% from the same period last year. Net income was listed at ₱4.6 billion, up 807% from the year prior. SMIC attributed the jump to higher ore grades as a result of pit redevelopment and higher market prices for copper.

“The intention for SMIC is to completely move out from the mining sector. And we want to move the shareholding we have in Atlas into one of our other listed entities [under the Sy family] that will bring it into Dominion Holdings. Our plan is to do that sometime next year,” DyBuncio said at a media briefing on August 12.

The Sy family now owns 54.48% of Atlas, with stakes divided between SMIC and listed investment firm Dominion Holdings Inc.

The latter disclosed to the Philippine Stock Exchange last August 10 that it had acquired a 20.43% stake from Anglo Philippines Holdings Corp. DHI signed a deed of assignment for the acquisition of subscription rights to 727.2 million Atlas shares, valued at ₱857 million.

Meanwhile, SMIC owns 34.5% of Atlas, with 17.06% held through direct shares and 16.99% through brokerage accounts.

Though the gradual transfer to DHI is seen to bring down total revenue for SMIC upon completion in 2027, DyBuncio said the company aims to make up for the shortfall through its investments in logistics provider 2GO and various renewable energy firms.

“We’re really growing our logistics business and the renewable business. For renewables, we actually have now six concessions which we’re trying to develop,” said DyBuncio.

The shift in investment priorities for one of the country’s largest conglomerates could further strengthen the case for the emerging renewable energy industry, while positioning logistics as another growing business sector in the country.

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