Lepanto trims losses in H1

MANILA, Philippines — Listed Lepanto Consolidated Mining Co. has trimmed its net loss by 14 percent to P352 million in the first semester of the year on higher revenues and better production.

In a disclosure to the local bourse, the company said metal sales went up to P1.1 billion as gold production increased to 11,845 ounces from 9,194 ounces.

Silver production went up to 49,764 ounces from 37,494 ounces, while copper production also increased to 1.52 million pounds from last year’s 1.36 million pounds.

Lepanto said silver prices dropped to $15.41 per ounce, while copper price decreased to $2.79 per pound. The average realized gold, however, slightly improved to $1,310 per ounce.

Major cost and expenses increased by 10 percent to P1.48 billion due to higher tonnage mined and milled. Milling cost, depletion and depreciation, and overhead cost also shot up.

Production tax was up by 13 percent to P44.8 million amid higher production and the effect of the excise tax.

Capital expenditures for the semester reached P177.4 million, bulk of which was allotted for machinery and equipment.

The company’s projected metal output for the year is 29,000 ounces of gold, 100,000 ounces of silver and 2.9 million pounds of copper.

Lepanto said various improvements have been and are continually being introduced in the copper flotation plant with two new crushers expected to be installed in the fourth quarter.

Lepanto is completing the upgrade of its mill in Mankayan in Benguet which includes the replacement of its Falcon concentrators and modifications to improve gold and copper recoveries.