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 a stronger peso.
In a disclosure to the Philippine Stock Exchange, Lepanto said that its net loss in January to June 2013 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 the P1.11 billion recorded during the same period in 2012.
In the second quarter of 2013 alone, the company’s net loss amounted 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 each ounce in April to June 2013 as compared to $1,605 each ounce 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, greatly impacted the company’s financial results.
Gold production also decreased slightly to 7,156 ounces in the second quarter of 2013, from 7,174 ounces a year ago. Milled tons rose from 113, 870 metric tons (MT) to 142,750 MT, but gold grade was lower at 1.79 grams each ton compared to 2.22 grams each ton, which resulted in 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.