Apex Mining net income up 401%

MANILA, Philippines — Listed Apex Mining Co. Inc. reported a 401 percent increase in its consolidated net income last year to P1.5 billion, driven by higher gold prices.

In a disclosure to the Philippine Stock Exchange, Apex Mining said revenues increased by 27 percent to P6.3 billion.

The higher ore grades, averaging 3.61 grams of gold per ton, contributed to the higher gold sales of 66,576 ounces in 2020.

In contrast, silver sales slightly decreased to 365,212 ounces from 369,616 ounces in 2019.

Apex said higher gold sales were further boosted by the higher average realized price of $1,798 per ounce compared to the $1,389 per ounce in 2019.

“We were able to optimize the high prices of gold with higher ore grades and higher recovery,” Apex Mining president and COO Luis Sarmiento said.

Milling throughput declined to 664,363 tons, with an average of 1,949 tons per day, from the 711,787 tons in 2019 at an average of 2,063 tons per day.

Apex said the decrease in the tonnage mill kept the cash operating costs at a lower level of P2.6 billion compared to P2.8 billion in 2019.

Cash income from operations was P3.4 billion, 74 percent higher than 2019.

The company’s continuing investments, amounting to P1.6 billion in 2020, brought non-cash charges for depreciation and amortization to P674 million.

“These investments were in relation to the continuing development of the mines in preparation for higher grade and larger tonnage operations,” Apex said.

Depletion cost was 38 percent lower at P349 million, due to lower milling tonnage and higher ore reserves.