Lepanto Mining bares higher gold output

Lepanto Consolidated Mining Co. (LCMC) is looking forward to a better performance this year as its core gold production site continues to have a higher output in the second half, the company informed the Philippine Stock Exchange.

LCMC reported that gold production in the Victoria project in Mankayan, Benguet for the second half of this year has been consistently high, averaging 15,300 ounces per month, as compared with the 11,500 oz/month average during the first semester.

In October alone, LCMC‘s shipments of bullion and concentrate consisted of 19,060 oz. of gold, 91,700 oz. of silver and 358,000 lbs. of copper with a total cost of P315 million. As a result, the company posted a net income of P95.5 million exclusive of extraordinary items during the period.

In the past quarter, gold production at Victoria surged 10 percent to 46,998 oz. from 42,652 oz. in the same period last year, on the back of a record 15,880 oz. output in September.

Silver production also went up 62 percent to 187,760 oz. while copper output reached 638,140 lbs. up 13 percent from the previous year.

One of the country’s top mining firms, Lepanto Mining is also one of the world’s lowest-cost gold producers, its average cash production cost for the third quarter improved to a lower $131/oz. of gold, from $153/oz. in the same period the past year.

Still, despite a record gold haul and improving output, LCMC’s financial results have not been at par compared with the previous year. The company’s earnings declined by 48 percent in the first nine months of 2001.

Company data showed its net income before extraordinary items reached only P228.673 million from January to September, failing to match the P441.673 million mark a year ago despite a 10 percent improvement in its third quarter earnings.

The drop in earnings was attributed to the slack in production since early this year, as metal prices in the international market remained depressed. However, LCMC said production is expected to improve gradually as the development works necessary for the employment of new mining methods i.e. bulk and dip down mining, and increase of ore deliveries to 3,000 tons per day, are completed.

Aside from mining, Lepanto, controlled by the family of Philippine Stock Exchange chairman Felipe Yap, has diversified into other fields such as diamond drilling, insurance, real estate development, ceramic tiles manufacturing and port operations.