Lepanto trims loss to P158 M

MANILA, Philippines — Lepanto Consolidated Mining Co. has trimmed its net loss to P158 million in the first quarter on higher revenues and better production.

In a disclosure to the local bourse, the company said its net loss decreased by 25 percent to P158 million as consolidated revenues jumped 40 percent to P595 million.

Gold production increased to 7,729 ounces from 5,037 ounces, while silver production went up to 27,331 ounces from 18,277 ounces.

Copper production also rose to 844,539 pounds. The firm’s total metal sales grew to P595 million due to  improved metal production.

Silver prices dropped six percent  to $15.83 per ounce, while the average realized gold price also fell to $1,317 per ounce. Copper price, likewise, declined to $2.79 per pound.

Major cost and expenses increased 13 percent to P735 million as tonnage milled went up to 166,354 metric tons from 108,640 MT.

Production tax almost doubled to P24.1 million amid higher production and the doubling of the excise tax.

Capital expenditures for the quarter totaled to P59 million, bulk of which was allotted for machinery and equipment.

The projected metal output for the year is 40,000 ounces of gold, 176,000 ounces of silver and 3.49 million pounds of copper.

Lepanto is completing the upgrade of its mill in Mankayan in Benguet which includes the replacement of its Falcon concentrators and modifications to improve gold and copper recoveries.

While the average milling tonnage has increased by 65 percent to 1,658 MT per day last year, a further increase to 2,500 MT has been programmed for 2019 to produce 11,000 MT of concentrates for a total gold output of 40,000 ounces.

The company is primarily engaged in the exploration and mining of gold, silver, copper, lead, zinc and all kinds of ores, metals, minerals, oil, gas, coal and their related by-products.

It sells its production to Hongkong, Canada, Peru, and China, among others.