Apex Mining nets P85.8M in 9 months

MANILA, Philippines - Apex Mining Co. Inc, one of the country’s leading gold producers, registered a net income of P85.8 million for the first nine months of 2012, compared to the same period last year when it generated a net loss of P19.5 million.

The increase in net income is a positive development for the Mindanao-based company even as it discloses a lower amount of gold sold for the first nine months of 2012. Apex sales of metals for the period ending Sept. 30 of this year amounted to P1.34 billion which is 12 percent or P0.18 billion  lower compared to P1.52 billion sold during the first nine months of 2011. The drop in revenue is due to lower average gold price and lower volume of sales made during this period.

The average gold price was $1,639 per ounce as of end September 2012 compared to the average gold price of $1,650 per ounce over the same period last year. In terms of volume, the company sold 17,731 oz of gold as of Sept. 30, 2012 as compared to 18,794 oz in the same period last year.

Apex president Baiverth Diabo cited efforts in reducing cost as key contributing factor in the company’s turn-around performance for the first nine months of 2012. The increase in net income even if sales volume is down is attributed to a significant reduction in the costs of metals sold including equipment and costs of direct and indirect materials and supplies. “Apex will try to sustain the momentum for the last quarter of the year as we expand exploration and development activities,” Diabo said.

An indicator of Apex Mining’s positive performance in the industry is the publicly-listed company’s ability to generate cash inflows through new share subscriptions from Monte Oro Resources and Energy Inc, Solar Securities Inc., Vicsal Development  Corp. and Mindanao Gold Ltd. In July this year.

Proceeds of the new subscriptions were used to finance the company’s “Apex 3000 Project” – primarily aimed at giving the company a 300 tons a day milling capacity and allowing the daily mining output to increase in the next three years from the current level’s 800 tons daily.

Apex chairman and chief executive vice president Benoit de Galbert shared: “Project Apex 3000 is proceeding as planned. New equipment for the mining operation are in place while ground works for the new milling plant has started.”

De Galbert likewise pointed out that in an earlier company disclosure this week, exploration activities in the company’s Maco mine area confirm the great potential of its copper-gold porphyry.