Apex Mining profit grows nearly 4-fold in 9 months

By Iris Gonzales (The Philippine Star) | Updated November 11, 2016 - 12:00am
http://www.philstar.com/business/2016/11/11/1642445/apex-mining-profit-grows-nearly-4-fold-9-months

MANILA, Philippines - Apex Mining Co. Inc. reported a consolidated net income of P291 million in the nine months to September this year.

This is 281 percent higher than the P76 million reported a year ago, Apex said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.

The parent company alone recorded a net income of P323 million during the nine-month period, 141 percent higher year on year.

Third quarter consolidated net income rose to P158 million, a marked turnaround from a net loss of P5 million in the same quarter last year. Parent company’s net income for the third quarter increased to P166 million from P26 million a year ago.

The company attributed its strong performance to the continued improvement of its Maco mine operations and higher output.

The mine continues to improve its operating throughput, achieving the average milling rate of more than 1,450 tons of ore per day in the third quarter.

This is 12 percent higher than the first half average of 1,295 tons per day although still short of its objective of 1,500 tons per day.

Gold production established a new record level of 41,123 ounces, higher by 33 percent than the gold output of 30,995 ounces a year ago while silver output was 232,201 ounces, 41 percent higher than last year.

Ore grades were lower at 4.83 grams of gold per ton and 31.53 grams of silver per ton this year, compared to the ore grades of 5.69 grams of gold per ton and 33.96 grams of silver per ton in 2015.

With gold prices averaging a little higher than $1,300 per ounce in the third quarter, the average nine month gold price for the Maco production amounted to $1,275 per ounce, slightly higher than the average gold price of $1,192 a year ago, Apex said.

Similarly, silver prices averaged 10 percent higher this year at $18 per ounce from the average of $16 per ounce last year.

The stronger prices boosted Apex’s revenue by 49 percent to P2.7 billion, already exceeding the full year revenue of P2.4 billion last year.

Moving forward, the company is optimistic about its growth prospects.

Apex president and CEO Walter W. Brown said Apex has successfully hurdled the recently conducted audit of the Maco mine by the Department of Environment and Natural Resources (DENR).

The mine has been allowed to continue with its operations as recommended by the multi-agency team that conducted the audit,” Brown said.

“We are also pleased that the mine has likewise obtained its ISO 14001:2015 certification on environmental management system from Certification International, which certification shall be valid for three years until September 2019.

These accomplishments reaffirm the company’s Maco mine compliance with pertinent environmental laws and regulations, and that the company is a responsible miner contributing not only to the common good of the people in Mindanao where it operates but to the entire country as well,” he said.