Apex Mining profit shines in H1 as gold prices surge

MANILA, Philippines — Razon-led Apex Mining Co. grew its earnings by more than a third in the first half on the back of a better topline buoyed by favorable metal prices and higher production volume, particularly for gold.

The miner said its attributable net income in the first half reached P1.89 billion, about five percent more than the P1.4 billion it posted in the same period last year.

Gross revenue during the reference period rose by nearly 22 percent year-on-year to P6.94 billion from P5.69 billion.

Gross expenditure, on the other hand, fell by 14 percent on an annual basis to P4.256 billion from P3.729 billion.

“The growth drivers are the surge in realized gold price, gold ounces sold and the depreciation of the peso against the dollar,” the company said in a regulatory filing.

Apex Mining said its gold production in the first half increased by four percent to 52,993 ounces from last year’s 50,796 ounces. Its silver output inched up to 176,838 ounces from 175,569 ounces recorded in the first half of 2023.

The company noted that its realized gold prices grew by 16 percent on an annual basis to $2,264 per ounce in the first half from $1,953 per ounce last year. Realized silver prices increased by 13 percent to $26.86 from $23.68.

The miner milled 426,396 metric tons (MT) of ore in the first half with gold recovery rate dipping to 85.8 percent from last year’s 87.34 percent following limited operations caused by the landslide near its mine site last February.

Apex Mining president and CEO Luis Sarmiento said the mine can sustain its performance this year “barring” any major obstacles in the remaining months of the year.

“Our acquisition of the Asia Alliance Mining Resources Corp.  gives us future gold resources as the extensions of existing mine veins spill over to the adjacent tenement, giving our exploration team new ground to drill and validate,” Sarmiento said.