Apex Mining reported that its consolidated net income in the first half of 2016 increased 60 percent on the back of record production in one of its mines and favorable exchange rate during the period.
In a disclosure to the Philippine Stock Exchange, Apex said its consolidated net income in the period totaled P133 million, compared with P82 million in the corresponding period of 2015.
“The higher net earnings were mainly brought about by the new production record established by the Maco mine this period,” Apex said.
The mines output in the second quarter of this year averaged nearly 1,400 tons of ore per day compared with 1,100 tons in the corresponding quarter last year. It is the result of the company striving to lift up output to 1,500 tons a day by the second half of this year.
Its gold production has reached 26,577 ounces, 31 percent higher than the 20,334 ounces produced in 2015. Silver produced was 140,317 ounces, 31 percent higher than the 107,036 ounces produced in 2015.
Revenue amounted to P1.7 billion this year, an increase of 42 percent from the revenue of P1.2 billion last year. The weaker peso, which averaged P46.96 to the US dollar compared with P44.45 to the dollar last year also contributed to the increase in revenue.
“The general weakening of the US dollar against gold and the British vote to exit the
European Union provided the impetus for the gold price to move favorably for gold producers,” said Walter Brown, APEX president and chief executive said.
“While we have seen the gold price rise to $1,375 per ounce as its highest level in the past months or so, it still has yet to break the $1,400 resistance level. As we speak, the gold price stands at $1334.5 per ounce. We would be pleased if the metal price would move up, nevertheless at this level, we expect the Company’s earnings for the year to be significantly higher than the income reported for the whole of last year,” he added.
Silver price has also increased, staying at $19.7 per ounce currently.
The higher milling tonnage increased cash operating cost to P1 billion for the six months period, 30 percent higher than the cash operating cost of P793 million a year ago.