Gold producer reports $1-M gain; sets expansion plans in PH
Amid the heat from the Department of Environment and Natural Resources (DENR), a Nevada-based gold producer expects higher trajectory for its business as it expands its global footprint with the expected acquisition of a productive asset in northern Philippines.
WGE Holdings Corp., which has been operating for less than a year, Thursday reported that its revenue had reached $1 million in the quarter ending June—more than three times the $279,000 recorded in the preceding seven months of maiden operation.
The company currently operates two gold projects in Sulawesi, Indonesia, which were both recently acquired.
“I am very pleased to be able to report an inaugural profit for our recently acquired gold production operation,” WGE Holdings chair Herbert Adamczyk said in a statement.
“As we continue the process of increasing output at our existing facilities and bringing new production on stream, we anticipate continued healthy increases in revenue and profit for the remainder of the year,” Adamczyk said.
He was referring to “an existing deep-shaft mine in a 50-hectare property in northern Philippines with estimated recoverable reserves of one million ounces.”
The official expressed confidence about a continued rise in the price of gold, particularly amid uncertainties in the global economy.
“We believe that a firm gold price, combined with our scheduled acquisitions of producing facilities in Indonesia and the Philippines, will provide a healthy return to our shareholders over the reminder of the quarter and during the next two years,” Adamczyk said.
Adamczyk said in July that the new acquisition was part of the company’s expansion program through a two-pronged investment strategy to support growth in Southeast Asia—growing its gold operations and making strategic investments in building products like cement, rebar and roofing materials.
“These initiatives will allow us to capitalize on historically high levels of building and infrastructure investments in both Indonesia and the Philippines, as both countries accelerate construction and urbanization programs to support high levels of economic growth,” Adamczyk said.
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