Apex Mining recovers from loss, posts P76-M income in 9 months

MANILA, Philippines - Apex Mining Co. Inc. reported a consolidated net income of P76.4 million in the nine months to September, a reversal of the P361 million loss incurred in the same period reported a year ago.

Revenues grew 51 percent to P1.8 billion driven by higher production output – 30,995 ounces of gold and 164,818 ounces of silver.

Apex Mining president and CEO Walter Brown said this more than offset the decline in average metal prices to $1,192 per ounce gold and $16 per ounce silver this year from the average prices of $1,282 per ounce gold and $20 per ounce silver in 2014.

He said production would have been higher if not for the power outages experienced during the quarter.

“Production would have been better were it not for the operational problems and power outages experienced this quarter,” he said.

Ore milled during the period increased to 226,723 tons from the 167,386 tons in 2014. Ore grade likewise averaged higher at 5.69 grams of gold per ton and 33.96 grams of silver per ton this year, from 4.68 grams of gold per ton and 29.19 grams of silver per ton last year. 

The company’s EBITDA amounted to P522.1 million in the first nine months, significantly higher than the P72.1 million recorded in 2014. 

Apex Mining’s Maco mine in Compostela Valley showed slightly higher mineral resources of 2.56 million tons.

To date this year, the mining firm has spent P1.5 billion for its  Maco mine, which includes exploration and mine development.  This is lower than the P1.9 billion spent last year.

Brown said that the Sangilo mine in Itogon has started to roll again, a significant milestone from about two decades of inactivity since the suspension of its operations in 1996.  

“We are on schedule in achieving our objective to operating at 200 tonnes a day by middle of next year,” he noted.

The resumption of operations of the Sangilo mine is seen as a prelude to the operation likewise of the Suyoc mine in Mankayan, both in the province of Benguet, following the company’s acquisition of Itogon-Suyoc Resources, Inc. in June 2015.