Apex Mining profit up 28% in 2019
Apex Mining Co. Inc. reported a consolidated net income of P306 million last year, a 28-percent increase from the P239 million it booked in 2018.
In a disclosure to the Philippine Stock Exchange on Monday, the mining firm said net income attributable to the parent company also increased by 6 percent to P351 million in 2019 compared to P332 million a year ago.
Revenue hit an all-time high of P5 billion, or 6-percent higher than the previous year’s P4.7 billion.
Apex Mining attributed the record revenue on higher metal prices that averaged $1,389 per ounce for gold and $16.14 per ounce for silver, as against the average prices of $1,260 and $15.49 per ounce for gold and silver, respectively, recorded in 2018.
Mill throughput of the Maco mine improved to 711,788 metric tons (MT) or an average of 2,063 MT per day. Last year’s mill recovery rate also reached a record-high of 85.5 percent as against the 84.8 percent recorded in the previous year.
The company said an increase in milling tonnage increased cash operating cost to P2.7 billion in 2019, a 7-percent expansion from P2.6 billion a year ago. It also led to a 6-percent increase in depletion cost to P562 million, it added.
“We could have produced more gold ounces this year were it not for the lower ore grade which we had to contend with passing through the lower grade zones of the Maco mine in the first half of the year. The higher milling tonnage and recovery rates helped in minimizing the reduction in gold output while at the same time increasing our silver production,” said Apex Mining President and Chief Executive Officer Luis Sarmiento.
Meanwhile, rehabilitation of the Sangilo mine of wholly-owned subsidiary Itogon-Suyoc Resources Inc. (ISRI) remains in progress.
The targeted commencement of commercial operation of the mine, however, has been moved from first quarter this year to the first week of July, due to the effect on the mine’s activities by the community quarantines because of coronavirus disease 2019 pandemic.
Aside from ISRI, Apex Mining’s consolidated accounts also include those of another wholly-owned subsidiary, Monte Oro Resources and Energy Inc., which has a processing plant located in Paracale, Jose Panganiban, Camarines Norte, through Paracale Gold Ltd.