Apex Mining net income falls 7% to P848M

Apex Mining Co., Inc. on Monday reported an attributable net income of P848 million in the second quarter, down 7.6% from P917 million, amid higher expenses and cost of production.

In a disclosure to the stock exchange, the mining firm said combined revenues in gold and silver reached P3.11 billion, higher by 22.65% than the P2.53 billion in the same quarter last year.

Gold and silver revenues amounted to P2.99 billion and P124.24 million, respectively.

However, general and administrative expenses during the period rose by 45% to P55.98 million from P38.59 million.

Of the total increase, personnel costs and professional fees amounted to P29.15 million, taxes and licenses to P4.82 million, and other administrative expenses to P22.01 million.

The cost of production, likewise, went up by 48.4% to P1.81 billion from P1.22 billion last year.

Materials and supplies totaled P659.29 million or 36% of the total costs.

In the six months ending in June, the company reported an attributable net income of P1.4 billion, down 10.7% from P1.57 billion previously.

Combined revenues from gold and silver increased by 19% to P5.68 billion from P4.77 billion a year earlier. Of the total, gold revenues were at P5.46 billion while silver revenues were at P228.79 million.

The cost of production in the first half increased by 41% to P3.39 billion while general and administrative expenses rose by 58.6% to P118.82 million.

Tons milled in Apex Mining’s Maco mine decreased by 3% to 378,564 tons while its Sangilo mine milled a total of 71,275 tons, up 34%.

“The higher average realized gold price of $1,953 per ounce during the year (versus $1,901 per ounce in 2022) pushed the revenues up by 19% in [the first half] of 2023,” the company said.

“Ore gold grades averaged 1% lower at 3.93 grams per ton compared to the [first half] of 2022 at 3.95 grams of gold per ton,” it added.

Apex Mining is primarily engaged in mining, milling, buying, and selling all kinds of ores including gold, silver, and copper.

At the stock exchange on Monday, its shares fell by six centavos or 2.38% to close at P2.46 apiece. — Sheldeen Joy Talavera