Gold upswing boosts Apex earnings

MANILA, Philippines — Razon-led Apex Mining Co. Inc. booked a net income of P3.5 billion in 2023, up by 6 percent from a year ago, thanks to higher production and metal prices.

“Our higher income… is not only due to the higher realized metal prices but also higher ounces delivered even with the disruption in the first quarter,” Apex Mining president and CEO Luis Sarmiento said.

Revenues in the past year climbed by 12.6 percent to P10.7 billion, which the company said was driven by buoyant metal prices. Of these, gold accounted for P10.2 billion and the remaining P448.5 million came from silver.

READ: Gold rallies, stocks ease as rate cut optimism fades

Gold prices averaged $1,962 per ounce during the period, an increase of 9.18 percent while silver rose by 7.94 percent to $23.51 per ounce.

Production cost

Apex Mining sold 106,495 ounces of gold, 5 percent higher than a year earlier, coming from its Maco and Sangilo mine sites in the provinces of Davao de Oro and Benguet. For every ton of ore mined, it was able to extract an average of 4.11 grams of gold.

Maco mine managed to increase its output despite intermittent work stoppages in the first quarter of 2023 caused by an earthquake that affected power supply, coupled with prolonged periods of heavy rainfall that triggered landslides in Davao de Oro.

READ: Apex Mining books record income

Meanwhile, the cost of production rose by 8.18 percent to P5.13 billion due to higher expenses on materials, supplies, overhead, contracted services, and depreciation, among others.

Apex Mining has been anticipating lower sales volume and production as its mining operation in Davao de Oro is running at a limited capacity following a deadly landslide that hit the mining vicinity in February.

“Strategies will be implemented to address production gaps once the rescue, retrieval and clearing operations have been completed,” the company said at that time.