Apex Mining net income jumps 68% to P5.39B

MANILA, Philippines — Publicly-listed Apex Mining Co. Inc. posted a 68-percent jump in net income to P5.39 billion in the first semester on higher metal prices.

The listed mining company under the Razon Group posted higher earnings despite lower metal grades and sales during the period.

READ: Apex Mining budgets $300M for 3-year expansion plan

Article continues after this advertisement

In a disclosure on Wednesday, Apex Mining said higher metal prices drove a 35-percent increase in revenues to P12.84 billion.

Realized gold prices rose 49 percent to $4,656 per ounce, while silver prices surged 134 percent to $77.67 per ounce.

Apex Mining also benefited from the Philippine peso’s depreciation against the US dollar, resulting in a favorable exchange rate variance.

The mining firm sold 43,215 ounces of gold, down 16 percent, while silver sales fell 22 percent to 154,946 ounces.

Article continues after this advertisement

Lower mill grades for both metals also weighed on operations as the company mined leaner areas while moving toward deeper, higher-grade zones.

Tonnes milled at the Maco mine rose 18 percent to 542,697 tons, while subsidiary Itogon-Suyoc Resources Inc. (ISRI) milled 83,373 tons, up 17 percent.

Article continues after this advertisement

The Maco mine in Davao de Oro has enough reserves and resources to operate until 2034, assuming a steady production rate of 3,000 tons per day (tpd).

READ: Apex Mining seeks amended permit for Sangilo expansion

Apex Mining is modifying the mine’s existing crushing and grinding infrastructure to raise capacity to 3,500 tpd. It is also continuing exploration and development activities aimed primarily at expanding resources and reserves.

ISRI is securing the remaining pre-operation permits after obtaining a certificate precondition for its Application for Production Sharing Agreement No. 103, covering a 434-hectare tenement in Itogon, Benguet.

Meanwhile, another unit, Asia Alliance Mining Resources Corp. (AAMRC), completed the initial verification of the remaining resources at the previously operated Amacan copper pit.

“The results will be disclosed once the report is finalized. It has engaged the host and neighboring communities as part of obtaining their Free and Prior Informed Consent (FPIC), prior to the operation of the copper and gold mine,” Apex Mining said.

Apex Mining president and CEO Luis Sarmiento affirmed the company’s commitment to the welfare of its host communities and local government units amid business volatility.

“Through the ups and downs of our business, we remain committed to the welfare of our host communities and LGUs as well as our partner IPs,” Sarmiento said. /pai