Lepanto suffers P105-M loss on lower gold prices

MANILA, Philippines - Lepanto Consolidated Mining Co. reported yesterday a net loss of P104.7 million in the second quarter of the year on lower gold prices and the appreciation of the peso against the dollar.

The loss negates the P24- million profit recorded in the same period last year.

In a regulatory filing, the company said gold price during the period averaged $1,383 per ounce against $1,605 in the same period in 2012.

The peso-dollar exchange rate during the second quarter of the year, meanwhile, stood at 41.74 compared to 42.76 to a dollar in the same period last year.

Gold production for the quarter also fell to 7,156 ounces compared to 7,174 ounces last year.

This, the company’s consolidated revenues reached P457.7 million, down from t P542.2 million in the same period last year.

Thus, the company reported a net loss of P101.3 million in the first semester against profits of 50.4 million in the same period last year.  Consolidated revenues  totaled P997.8 million versus last year’s Pl.ll billion.

In the second quarter of the year, milling tonnage rose to 142,750 tons from 113,870 tons in the same period last year. Gold recovery, however, was lower at 1.79 grams per ton against  2.22 grams per ton last year.

Operating expenses also rose six percent from P499.8 million to P527.7 last year.

In the first semester, milling tonnage was higher at 274,050 tons against last year’s 236,990 tons. Gold recovery, however, was lower year-on-year at 1.9l grams per ton compared to 2.12 grams per ton last year.

The company said it expects to produce 36,000 ounces of gold and 64,000 ounces of silver this year.

Lepanto has two mineral production and sharing agreements (MPSAs) for tenements in Mankayan, Benguet.

The company’s subsidiaries include Shipside Inc.; Diamond Drilling Corporation of the Philippines; Lepanto Investment and Development Corp.; Diamant Boart Philippines, Inc.; and Far Southeast Gold Resources Inc.

Aside from mining, Lepanto and its subsidiaries are involved in other businesses such as hauling, diamond drilling services, insurance, and manufacture of diamond tools.