Apex posts H1 profit of P81.7M

APEX Mining Co. said it had managed to turn around its operations in the first semester, posting a net income of P81.7 million from a P279-million loss in the same period in 2014.

Revenue jumped 72 percent to P1.18 billion due to higher production of gold and silver.

Apex produced 20,334 ounces of gold and 107,036 ounces of silver, or an increase of 78 percent and 66 percent, respectively.

In a statement, Apex said the increased output more than compensated for the downtrend in metal prices.

Also, the company said higher metal volume pressed down cash cost per ounce by 35 percent year-on-year.

Ebitda (Earnings before interest, taxes, depreciation and amortization) was P343 million in the first half this year, recovering from negative P79.2 million a year ago.

Of the P1.9 billion earmarked for capital expenditure this year, Apex has spent P690.2 million as of June.

“The P2.25-billion loan granted by BDO has enabled us to procure the necessary capital equipment to push forward our mine development activities towards our goal of milling at the rate of least 1,500 tons per day this year,” Apex president and chief executive Walter W. Brown said.

“Hopefully by the fourth quarter, we would be reaching this important milestone in our thrust to elevate the Maco mine’s operating capability to deliver 4,000 ounces of gold a month,” Brown added.

Apex is also looking to output from Itogon Suyoc Resources Inc. (Isri), which has mining claims in both Itogon and Suyoc in Benguet, with existing mill and production facilities in Sangilo.