APEX Mining Co. Inc. posted a 68-percent increase in consolidated net income in the first half as surging gold and silver prices more than offset declines in metal sales by volume.
In a statement on Wednesday, the company said consolidated net income reached P5.39 billion in January to June, up from P3.20 billion a year earlier.
Apex Mining said the earnings growth came despite declines in both gold and silver sales. It said gold sales fell 16 percent to 43,215 ounces in the first half from 51,436 ounces a year earlier, while silver sales dropped 22 percent to 154,946 ounces from 197,925 ounces.
The lower volumes were more than offset, however, by higher realized metal prices. Realized gold prices jumped 49 percent to $4,656 per ounce from $3,121, while realized silver prices more than doubled to $77.67 per ounce from $33.18.
Apex Mining said its Maco mine in Davao de Oro recorded lower mill grades in the first half, with gold grade averaging 2.46 grams per tonne from 3.26 grams per tonne a year earlier, and silver grade at 10.89 grams per tonne from 14.72 grams per tonne previously.
The company attributed the lower grades to mining in lean-zone areas.
For the second quarter alone, consolidated net income reached P2.57 billion, up from P1.71 billion a year earlier.
Apex Mining posted second-quarter net income of P2.07 billion from P1.56 billion the year before. Subsidiary Itogon-Suyoc Resources Inc. reported net income of P504.41 million, up from P171.93 million.
The company said consolidated excise taxes paid rose 48 percent to P536.59 million in the first half from P363.42 million a year earlier.
Payments for Indigenous peoples' surface rights royalty, IP royalty, and taxes, licenses and permits also increased by P103.89 million, or 43 percent, during the period.
Apex Mining President and CEO Luis Sarmiento said the company remained committed to the welfare of its host communities, local government units and partner Indigenous peoples.
Meanwhile, Apex Mining said the Maco mine had enough reserves and resources to operate until 2034, assuming a steady production rate of 3,000 tonnes per day.
The company said it was modifying facilities at the Maco processing plant to raise capacity to 3,500 tonnes per day, while exploration and development activities continue to expand its resources and reserves.
Shares of the company slipped P0.10, or 0.66 percent, to close at P14.96 each on Wednesday.
