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BY Likha C. Cuevas-Miel Reporter
DESPITE record gold prices,
Lepanto Consolidated Mining Co. said it incurred more losses on
lower production compounded by the strong peso, which cut revenues.
Based on its preliminary
information statement submitted to the Securities and Exchange
Commission, the mining company said it suffered operational losses
of P216.1 million, almost 12 times more than the previous year.
Lepanto blamed the hemorrhage on lower gold production brought about
by lower tonnage milled year on year and lower grades.
The firm also said the stronger
peso against the dollar eroded its revenues, adding the local
currency averaged 51.19 vis-à-vis the greenback in 2006 then
appreciated to an average of 46.19 last year. However, the impact of
the stronger currency was cushioned by the increase in average gold
prices from $606.24 per ounce to $697.71.
Last year, Lepanto produced
48,871 ounces of gold, or 6,183 ounces less than the previous year.
This included gold content of copper concentrate amounting to 3,839
ounces and 11,194 ounces, respectively. Overall grade for 2007
slipped to 3.01 grams per ton from 3.16 in 2006.
Sales of metals were 5 percent
lower at P1.715 billion while costs and expenses rose P13 million on
the back of collective bargaining provisions and P7 million due to a
power rate increase.
Smelting and other expenses
related to copper were P47 million less than the previous year due
to the suspension of copper floatation and the absence of inventory
last year.
Lepanto also cut its financing
costs, as it reduced its loan balance after repaying some banks.
Interest expenses were 21.4 percent lower at P166.6 million while
foreign exchange gains went up by 60.2 percent to P227.9 million due
to the 16-percent appreciation of the peso.
Long term borrowings went down by
P392.2 million as Lepanto settled P230.9-million worth of debts.
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