Apex makes financial turnaround

MANILA, Philippines - Listed mining firm Apex Mining Co. Inc.  reported a consolidated net income of P81.7 million in the first half, reversing the net loss of P279 million in the same period last year amid declining metal prices.

The turnaround was due to higher revenues owing to higher gold and silver output.  First semester revenues surged to P1.17 billion from only P685.35 million a year ago.

However, in the second quarter alone, the company incurred a net loss of P18.56 million, lower than the P135.53 million net loss incurred in the April to June 2014 period.  Revenues increased to P511.36 million from P422.18 million.

“While average metal prices were lower at $1,215 per ounce gold and $17 per ounce silver this year, increased production output to 20,334 ounces gold and 107,036 ounces silver more than compensated for the unfavorable downtrend in metal prices,” Apex Mining said in its quarterly report.

During the first half, Apex Mining focused on development activities for the Maco mine in Compostela Valley to improve the mine’s operating capability.

The company secured a P2.25 billion loan from BDO to procure the necessary capital equipment to push forward mine development activities, said Walter W. Brown, president and CEO of Apex Mining.

The loan proceeds would help the company achieve its goal of milling at the rate of least 1,500 tons per day this year.

“Hopefully by the fourth quarter, we would be reaching this important milestone in our thrust to elevate the Maco mine’s operating capability to deliver 4,000 ounces of gold a month,” Brown said.

Last June, Apex Mining acquired 98 percent of Itogon-Suyoc Resources Inc. for P182.7 million.

Apex Mining has infused P238 million in new equity in Itogon-Suyoc to pay down its debt and to reopen its Sangilo mine.

“We should be producing at 75 tons a day from this mine by yearend, and at 200 tons a day by next year. This will further boost the company’s production output and provide additional buffer to counter the declining trend in metal prices,” Brown said.

Apex has set aside P1.9 billion in capital expenditures this year, of which P690.2 million has already been spent.