Listed miner Lepanto Consolidated Mining Co. on Tuesday reported a massive net loss in the first half of the year as a result of lower gold prices and stronger peso.
In a disclosure to the Philippine Stock Exchange, Lepanto said its net loss in January to June 2013 has amounted to P101.30 million, as compared to a net income of P50.40 million a year ago. Consolidated revenues for the first half of 2013 totaled P997.8 million, from P1.11 billion during the same period in 2012.
In the second quarter of 2013 alone, the company’s net loss amount to P104.74 million, from a net income of P23.98 million in the previous year, while consolidated revenues amounted to P457.7 million in 2013 from P542.2 million in 2012.
Lepanto attributed the quarterly loss to the lower gold prices, averaging $1,383.52 per ounce in April to June 2013 as compared to $1,605 per ounces in 2012. Also, the appreciation of the peso against the dollar, which averaged at $41.74/$1 in second quarter of 2013 from $42.76/$1 in 2012, has greatly impacted the company’s results.
Gold production also decreased slightly to 7,156 ounces in the second quarter of 2013, from 7,174 a year ago. Milled tons rose from 113, 870 MT to 142,750 MT, but gold grade was lower at 1.79g/t compared to 2.22g/t, which resulted to a slightly lower gold production.
Despite the decrease in average gold grade, gold production in the first half of 2013 increased to 14,752 ounces from 14,283 ounces last year, on the account of increased tonnage of 274,050 MT from 236,990 MT. JAMES KONSTANTIN GALVEZ