Apex Mining profit jumps 33% on high metal prices

The Razon Group’s Apex Mining Co. Inc. got a boost from rising metal prices, with its net income increasing by 33 percent in the nine-month period ending September.

Apex Mining reported to the local bourse that net income attributable to equity holders of the parent company surged to P3.07 billion from P2.31 billion a year ago. Revenues from the sale of gold and silver rose by 24 percent to P10.84 billion from P8.73 billion.

Apex Mining president and CEO Luis Sarmiento said the listed firm’s “good performance” was attributed to “higher tonnes milled and the surge in gold prices.”

Its Maco mine site in Davao de Oro and subsidiary Itogon-Suyoc Resources Inc.’s (Isri) Sangilo mine site in Benguet sold 78,105 ounces of gold, up by 1 percent from 77,652 ounces. Silver sold dipped by 3 percent to 257,169 ounces from 265,217 ounces.

The realized price of gold climbed by 22 percent to $2,359 per ounce from $1,939 while that of silver increased by 18 percent to $27.72 per ounce from $23.46 per ounce. During the period, the weighted average foreign exchange rate was P56.95 against the greenback.

Despite a landslide in Maco town in Davao de Oro in February, the company said its mine milled 657,975 tonnes of ore, inching up by 10 percent from 597,443 tonnes. Isri Sangilo mine milled 110,303 tonnes from 104,270 tonnes.

Consolidated cost of production rose by 18 percent to P5.89 billion mainly because of higher tonnage processed, which led to increased usage of materials and electricity, alongside higher depreciation and depletion costs.

Good numbers

Barring any more natural calamities that could affect operations, Sarmiento said he was upbeat about the firm’s performance for the remainder of this year.

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“Cliché as it may sound, our good numbers redound to wins for our host communities, too,” he added.

Apex Mining said its unit Asia Alliance Mining Resources Corp. was on track with drilling and exploration works in its Amacan and Hijo projects in Davao de Oro.

The company acquired the two projects through an agreement with the Philippine Mining Development Corp., a government corporation tasked to develop idle mining assets.