Gold price surge boosts record Apex Mining profit

MANILA, Philippines — Razon-led Apex Mining Co. Inc. earned over P4 billion in 2024, driven by higher gold output and prices.

In a regulatory filing, Apex Mining said its net income rose by more than a fifth to a record-high P4.33 billion, from P3.5 billion a year earlier.

The mining firm’s revenues expanded by a quarter year-on-year to P13.37 billion from P10.7 billion because of double-digit rate increase in the sales of gold and silver.

Majority of the company’s top line came from gold sales that reached P12.81 billion last year. The amount was nearly 25 percent higher than the P10.25 billion recorded in 2023.

Furthermore, Apex Mining said its revenues from silver sales rose by 26 percent to P567.09 million from P448.51 million.

Meanwhile, the miner’s cost of production expanded by a quarter on an annual basis to P6.44 billion from P5.13 billion.

“We were tested by the landslide that happened in February 2024. But despite being on limited operations for five months to help the landslide victims and their families and to support the province’s disaster management and rehabilitation, our team was able to catch up and meet our targets,” Apex Mining president and CEO Luis Sarmiento said.

The company’s Maco mine produced 899,022 metric tons (MT) last year, 9.2 percent higher than the 823,427 MT recorded in 2023. However, the mine’s average ore grade dropped to 3.61 grams per MT from 4.11 grams per MT.

Likewise, Apex Mining’s Sangilo mine registered an uptick in its production but also saw a decline in its average ore grade.

The mine’s output reached 148,021 MT, about seven percent over the 138,361 MT recorded in 2023. Grade wise, the mine had an average of 3.1 grams per MT compared to 3.32 grams per MT in 2023.

The company saw its average realized gold price expand by 24 percent to $2,436 per ounce from $1,962 per ounce.

Meanwhile, its average realized silver price grew by almost 22 percent to $28.63 per ounce from $23.51 per ounce.

Sales wise, Apex Mining sold 104,107 ounces of gold, down two percent year-on-year and 350,151 ounces of silver, up by one percent, last year.

Apex Mining also noted that the depreciation of the peso against the US dollar also contributed to its record profit. The miner had an average foreign exchange rate of P57.45 last year compared to the P55.67 in 2023.

The mining firm earned P478 million more in 2024 because of the weaker currency.

Furthermore, the company said its total estimated ore reserve increased by 72 percent to 9.9 million MT from an earlier estimate of 5.75 million MT. This means that the firm’s Maco mine can sustain production until 2032 at a rate of 3,000 MT per day.