Apex net income shrinks in Q1

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Listed Apex Mining Co. on Tuesday said it is hopeful to realize a much higher net income for the entire year on improved metal prices even though it posted a lower net income in the first quarter of the year.

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In a report, the miner said that for the first three months of the year, its consolidated net
income narrowed by 61 percent to P39 million from the P100 million realized during last year’s same period.

The mining company attributed the lower net earnings to the increasing depreciation expense of its equipment as well as lower foreign exchange gains during the period.

Nevertheless, its revenues for the period was a record high at 17 percent, rising to P775 million from the P665 million generated during the similar quarter last year.

Cash operating income of its gold-rich Maco mine in Compostela Valley was likewise up by 24 percent to P248 million versus the P205 million posted last year.

Walter Brown, Apex’ President and Chief Executive Officer, said that despite earning much less in the first quarter, the mining firm is optimistic about realizing a much higher net income for the entire year on better production of gold and silver because of the improved prices of metals in the world market.

“We are encouraged by the recent positive movements in metal prices with gold reaching a high of $1,304 per ounce before settling at $1,273 per ounce as we make this report. The price of silver has similarly moved, reaching a high of $18 per ounce settling currently at $17 per ounce,” Brown said.

For the period, the mining firm was able to produce 12,779 ounces of gold or about 362 kilograms, 11 percent higher and the highest recorded quarterly production for the company to date.

In silver production, Apex produced some 61,085 ounces or 1,763 kilograms, 18 percent higher year-on-year.

“Should this uptrend [in prices]continue and as we attain our goal of operating at 1,500 tons a day towards the middle of this year, we are confident that the company will be reporting significant net earnings growth for the whole year period of 2016” he added.

In 2015, Apex swung back to net profit after incurring a net loss from a year before, mainly because of its record output of gold and silver metals in its Compostela Valley operations.

Its consolidated net income last year reached P71 million, a reverse from the consolidated net loss of P389.9 million reported from a year earlier.

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