Apex Mining swings to net loss in 9 months

MANILA, Philippines — Listed Apex Mining Co. Inc. swung to a P136 million net loss in the first three quarters compared to the P991 million profit reported in the same period last year.

Apex ecognized a provision for impairment of some subsidiary companies’ assets amounting to P1.1 billion.

This was the result of the latest management assessment on the recoverability of property and equipment, intangible assets and deferred mining exploration costs of foreign projects in West Africa and Mongolia, and local projects in Camarines Norte and in Metro Manila.

The National Mineral Agency has revoked the tenement license of the Gori Hills project in West Africa, owned by Monte Oro Mining Co. Ltd.

On the other hand, tenement applications for the Camarines Norte project were affected by the freeze on issuance of new mining licenses by the government while the build-operate-transfer contract with the Department of Environment and Natural Resources (DENR) for waste management has yet to be implemented.

“Apex deems it prudent to provide for the impairment of these non-moving subsidiary companies’ assets during this pandemic year. The implementation, redevelopment or sale of these impaired assets in the future will provide upside opportunities to the company going forward,” it said.

Meanwhile, revenue from January to September was nine percent higher at P5 billion.

Milling throughput increased to 514,008 metric tons, averaging at 2,107 MT per day as compared to 491,269 MT in 2020.

Year-on-year, the lower ore grades averaging 3.45 grams of gold were neutralized by better prices. Metal prices averaged $1,786 per ounce for gold and $24 per ounce for silver.