Apex H1 earning up 3-fold to P312 million

MANILA, Philippines — Listed Apex Mining Co. Inc. reported a consolidated net income of P312 million in the first semester, up nearly 300 percent as lower production output was offset by better global prices.

In a regulatory filing, Apex said revenue was 14 percent lower at P2 billion.

But lower operating costs and expenses, mainly on account of the lower milling tonnage, contributed to the growth in earnings during the six-month period.

For the first half, milling throughput decreased to 314,528 metric tons averaging at 1,861 MT per day.

The lower production was due to the restriction on the movement of employees residing outside the Maco mine by the community quarantines in the second quarter, and the strict health protocols implemented by the mine to keep it free from the coronavirus.

While tonnage milled was lower for the period, the recovery rate was established at 86.63 percent from 84.37 percent a year ago.

The higher ore grades averaging 3.53 grams of gold contributed to the slightly better gold sales to 30,988 ounces this year.

Silver sales, however, decreased two percent to 171,602 ounces.

Stronger global metal prices cushioned the negative effect of lower metal outputs.

Metal prices averaged $1,634 per ounce for gold and $17 per ounce for silver.

This compares to the average prices of $1,314 and $16 per ounce for gold and silver, respectively, in 2019.

Meanwhile, the suspension of airport service caused some delays and affected the usual frequency of the mine’s bullion shipments. Of the mine’s production output, only 23,008 ounces of gold and 125,635 ounces of silver were sold during the first half.

The remaining inventory in the mine site was eventually shipped and sold in July that fetched higher prices.

Apex president and chief executive officer Luis Sarmiento said if the price of gold remains strong for the rest of 2020, coupled with the continued production efficiency initiatives, the company should be able to sustain its strong performance as well.