Lepanto Mining trims losses

MANILA, Philippines – Listed Lepanto Consolidated Mining Co. trimmed its net loss to P500 million in the first nine months of the year on the back of improved revenues.

Revenues from January to September went up 21 percent to P1.1 billion. Third quarter revenues improved 12 percent to P427 million.

Metal sales grew nearly 30 percent to P1.05 billion due to higher gold production and the depreciation of the peso versus the US dollar.

Gold production rose to 17,213 ounces from 15,007 ounces as a result of higher milled ore.  Silver production slightly decreased to 29,034 ounces from 35,304 ounces with the reduction in silver grade.

On the other hand, cost and expenses  increased 19 percent to P1.5 billion.

Mining cost surged by almost 80 percent to P493 million while milling cost decreased to P146 million due to the lower prices and lesser usage of some milling materials.

Other cost component that increased included labor, major consumables, repairs, maintenance and service.

Lepanto is among the 20 mining firms that have been recommended for suspension following the audit of the Department of Environment and Natural Resources (DENR) on the industry.

The company, which operates in Benguet, is primarily engaged in the exploration and mining of gold, silver, copper, lead, zinc and all kinds of ores, metals, minerals, oil, gas, coal and their related by-products.

It sells its production to Hongkong, Canada, Peru, and China, among others.