Apex Mining earnings up 28% to P306 million in 2019

MANILA, Philippines — Apex Mining Co. Inc. reported a consolidated net income of P306 million in 2019, up 28 percent from the P239 million recorded in 2018 amid higher production output and better global prices.

In a regulatory filing, Apex said revenue was six percent higher at P5 billion in 2019,  a new record revenue for the firm.

For the whole of 2019, milling throughput increased to 711,788 metric tons, averaging at 2,063 MT per day compared to 609,604 MT, averaging at 1,789 MT per day in 2018.

Recoveries were also at 85.5 percent for gold and 75.5 percent for silver, both higher than last year’s 84.8 percent and 71.7 percent, respectively.

Year-on-year, the lower ore grades averaging 3.19 grams of gold and 20.47 grams of silver per MT contributed to the reduced gold sales to 64,763 ounces this year from 66,053 ounces.

Silver sales, however, increased by 22 percent to 369,616 ounces from 303,385 ounces.

Further, metal prices averaging $1,389 per ounce for gold and $16.14 per ounce for silver were the highest in recent years.

This compares to the average prices of $1,260 and $15.49 per ounce for gold and silver, respectively, in 2018.

“The higher milling tonnage and recovery rates helped in minimizing the reduction in gold output while at the same time increasing our silver production,” Apex Mining president and CEO Luis Sarmiento said.

“The strengthening of the metal prices toward the latter part of the year, with gold breaking above $1,500 per ounce and silver reaching $17 per ounce, somewhat offset our lower production,” he said.

The continuing investments in capital expenditures, which last year amounted to P1.7 billion, increased non-cash charges for depreciation and amortization to P691 million, 23 percent higher.

These investments were in relation to the continuing development of the mines in preparation for higher grade and larger tonnage operations.