Apex Mining Co. Inc. (APX) reported a 94-percent increase in consolidated net income for the first quarter of 2026, driven by significantly higher gold prices despite lower sales volumes and weaker ore grades.
In a disclosure, the listed mining company said consolidated net income reached P2.82 billion in the January-to-March period, up by P1.37 billion from P1.45 billion recorded in the same quarter last year.
Gold sales volume during the quarter fell by 20 percent to 20,354 ounces from 25,362 ounces a year earlier. However, the average realized gold price surged to $4,909 per ounce from $2,953 per ounce in the first quarter of 2025, supporting the company’s earnings performance.
Ore gold grade at the Maco Mine in Davao de Oro also declined during the quarter, averaging 2.43 grams per tonne compared to 3.16 grams per tonne in the same period last year.
Apex Mining President and Chief Executive Officer Luis Sarmiento said the lower average grade was due to lean zones encountered during mining operations.
“Once completed, this tunnel will provide access to deeper ore blocks while improving water and ventilation systems, thereby enhancing the working environment and safety of our miners as we work in the lower levels where higher-grade deposits are expected to be located,” Sarmiento said, referring to the ongoing construction of the Tagbaros Drain and Ventilation Tunnel.
The company said it expects to incur significant capital expenditures over the next few years, mainly to increase production capacity at the Maco Mine and develop the copper project of Asia-Alliance Mining Resources Corp.
Apex Mining said the copper project under Asia-Alliance is estimated to require around $300 million in capital expenditures, including plant development and construction costs, with spending expected to be distributed evenly over the next three years before commercial operations begin.
Meanwhile, the ongoing expansion of the Maco Mine from 3,000 tonnes per day to 3,500 tonnes per day is expected to cost approximately P100 million and forms part of the company’s regular capital expenditure program.
According to Apex Mining, strong cash inflows, a solid asset base, and good credit relationships with local banks provide flexibility to fund these projects.
Sarmiento also said the company remains operationally stable despite the ongoing US-Iran conflict, noting that fuel costs account for only around 4 percent to 5 percent of total production costs.
“We also continue to identify and develop reliable alternative sources of fuel to mitigate the potential impact of the volatility in oil prices and supply on our operations,” he said.
Apex Mining operates the Maco Gold Mine in Davao de Oro, while its wholly owned subsidiary Itogon-Suyoc Resources operates the Sangilo Mine in Benguet.
