Apex Mining profit jumps 58% in Jan-Mar
Apex Mining Co. Inc. reported on Tuesday that its consolidated net income increased by 58 percent to P119 million in the first three months of 2020 from P75 million in the same period a year ago.
In a disclosure, the listed mining firm said its net income attributable to the parent company rose by 45 percent to P125 million in January to March from P86 million year-on-year.
It attributed the higher earnings to lower operating costs and expenses.
Milling tonnage reached 158,834 tons in the quarter at an average of 1,958 tons a day, down 5 percent from 167,200 tons a year earlier. But its recovery rate inched up to 86.84 percent from 84 percent in 2019.
From January to March, the average ore grade per ton was lower at 3.04 grams per ton of gold, compared with last year’s 3.67 grams.
Gold sales reached 13,916 ounces in the period, 19 percent lower than the 17,215 oz sold the previous year. Silver sold reached 77,852 oz, a 25-percent decrease from 103,345 oz in 2019.
The firm’s consolidated earnings were derived from its share of the administrative costs of wholly owned subsidiaries Itogon-Suyoc Resources Inc. (ISRI), which owns the Sangilo and Suyoc mines in Benguet province; and Monte Oro Resources & Energy Inc. (MORE), which holds a 30-percent participating interest in Service Contract 72, which covers the Sampaguita gas field off northwest Palawan province.
“The Covid-19 (coronavirus disease 2019) related community quarantines imposed in Davao de Oro, where the company’s Maco mine is located, has not significantly affected its operations this period, as the restrictions were put in effect only toward the last 15 days of the quarter,” Apex President and Chief Executive Officer Luis Sarmiento said.
“The target date to commence the commercial operation of the Sangilo mine of ISRI, however, has been moved to July, because of the restrictions imposed in Benguet province and in South Africa, where the locomotive equipment needed by the mine ready for delivery by the manufacturer has been held up. With respect to MORE, there was no progress in the status of Service Contract 72,” he said.
Apex Mining shares grew by 9 centavos or 8.11 percent to close at P1.20 each on Tuesday.