Apex Mining net income up 281%

Apex Mining Co. Inc. (APX) consolidated net income for the first nine months of 2016 hit P291 million, up 281 percent from P76 million a year ago.

Parent firm net income amounted to P323 million, or up 141 percent year-on-year.

Consolidated net income for the third quarter hit P158 million, a turnaround from a net loss of P5 million a year ago. Parent company net income in the same quarter rose to P166 million from P26 million a year ago.

Its Maco mine continues to improve on its operating throughput, achieving an average milling rate of more than 1,450 tons of ore per day in the third quarter, short of its goal of 1,500 tons per day but 12 percent higher than the first half average of 1,295 tons a day.

Gold production established a new record of 41,123 ounces, up 33 percent from 30,995 ounces a year ago. Silver output was 232,201 ounces, 41 percent higher than a year ago. Ore grades were lower, however, at 4.83 grams of gold per ton and 31.53 grams of silver per ton this year, compared to 5.69 grams of gold per ton and 33.96 grams of silver per ton in 2015.

With gold prices averaging a little higher than $1,300 per ounce in the third quarter, the average nine-month gold price for the Maco production amounted to $1,275 per ounce, slightly higher than the average gold price of $1,192 a year ago. Silver prices averaged 10 percent higher this year at $18 per ounce from the average of $16 per ounce last year. The stronger prices boosted the company’s revenue by 49 percent during the first three quarters to P2.7 billion from P1.8 billion in 2015. The nine-month revenue to date has already surpassed the full year revenue of P2.4 billion in 2015.

Cash operating cost for the three quarters rose to P1.5 billion this year from P1.2 billion in 2015 as a result of the higher milling tonnage, on per ton of ore basis. However, cash operating cost has been lower at $100 per ton this year from $118 per ton last year. Cash operating cost per ounce net of silver credits is also lower at $698 per ounce this year from $772 per ounce last year.