Lepanto posts net loss in H1

MANILA, Philippines — Listed Lepanto Consolidated Mining Co. reported that its net loss widened by 21 percent to P457 million in the first semester from a year ago amid lower revenues and production.

Lepanto said net loss from January to June increased by a double digit rate of 21 as metal sales went down to P683 million due to the suspension of copper concentrate production and the impact of the community quarantine.

Gold production decreased to 2,744 ounces from 11,845 ounces, while silver production went down to 10,827 ounces from 49,764 ounces.

Copper production also declined to 618,422 pounds from last year’s 1.64 million pounds.

Early this year, Lepanto decided to refocus on gold and silver production amid rising prices of the two metals.

Lepanto said silver prices were higher at $17.41 per ounce, up 13 percent, while gold price increased to $1,631 per ounce. The average copper price, however, slightly went down to $2.71 per pound.

Major cost and expenses decreased by 25 percent to P1.11 billion due to lower tonnage mined and milled. Milling cost, depletion and depreciation and overhead cost also went down.

Capital expenditures for the three-month period totaled to P122 million, the bulk of which was allotted for exploration and machinery and equipment.

Amid the continued optimism on the prices of precious metals, Lepanto is prioritizing the development of the remaining reserve from its Victoria mine to increase its contribution to production and work on a drilling program to delineate its extension.

Its carbon-in-pulp plant is also undergoing rehabilitation to raise overall gold recovery and reduce operating costs.