Lepanto profits soar amid surge in output, gold prices
Listed mining firm Lepanto Consolidated Mining Co.’s net earnings soared by as much as 4,000 percent in the January to May period. This was thanks to higher production levels and elevated gold prices.
In a stock exchange disclosure on Tuesday, Lepanto said its mining output surged by 23 percent to 10,151 ounces.
Gold prices reached $3,035 per ounce, representing a 39.1-percent increase.
The rocketing of the net income offset the 9-percent rise in expenses during the five-month period.
As a result, the company’s revenues ballooned by almost 66 percent to P1.865 billion.
Lepanto, which operates a mine site in Benguet province, said it is searching for local partners to develop the Far Southeast project in the Cordillera region. However, it did not respond to an inquiry whether there are ongoing talks with potential investors.
“We have the Far Southeast Project that has an inferred mineral resource of 19.8 million ounces of gold and 4.6 million metric tons of copper. Lepanto intends to find a partner to develop this project,” a company officer told the Inquirer in an email.
Lepanto owns 60 percent of Far Southeast Gold Resources Inc. (FSGRI), a joint venture with South Africa-based mining company Gold Fields Switzerland Holding AG with resources in Mankayan. FSGRI is not yet operating.
Meanwhile, Lepanto will explore options to extend the Victoria and Teresa deposits located in Mankayan town in Benguet.
“All efforts on equipment acquisition and upgrades are focused on improving productivity and metal recoveries. Presently, there are five active drill rigs drilling for both grade control and exploration, with encouraging results,” it added.
Engaged in the production of gold/silver dore and gold/copper concentrates, Lepanto has four wholly-owned subsidiaries.
These include Diamond Drilling Corp. of the Philippines, Diamant Manufacturing and Trading Corp., Lepanto Investment and Development Corp. and Shipside Inc.
