Apex Mining Q3 profit up 64% as gold prices rise

APEX Mining Co., Inc. said net profit rose 64.43% year on year in the third quarter, driven by higher gold prices.

In a regulatory filing, Apex said net profit came in at P2.15 billion during the quarter, as revenue from gold surged 52.85% year on year to P5.75 billion. Silver revenue rose 68.85% to P230.8 million.

In the third quarter, Apex Mining sold 27,316 ounces of gold at a realized price of $3,668, reflecting a 9% increase in volume and a 44% increase in value.

Silver sold for the quarter totaled 92,969 ounces at a realized price of $43.2, up 16% in volume and 46% in value.

In the first nine months, net profit rose 77.65% to P5.45 billion a year earlier.

“While the surging metal prices and strong position of the dollar versus the peso bolstered the financial performance of Apex Mining, the cost management initiatives that are being implemented across the mine sites are also creating a stronger foundation for the company to fortify its operations,” Apex Mining President and Chief Executive Officer Luis R. Sarmiento said in a statement.

The gold and silver sold by Apex Mining were extracted from its Maco Mine in Davao de Oro and Sangilo Mine in Itogon, Benguet.

In the third quarter, Apex Mining milled 244,973 tons of ore at the Maco Mine, up 6% from a year earlier.

Gold recovery in the third quarter was 88.44% compared to 84.15% a year earlier. However, ore gold grades averaged, at 3.29 grams per ton, down 9% from a year earlier.

At the Sangilo Mine, operated by Itogon-Suyoc Resources, Inc. (ISRI), total milled ore amounted to 107,335 tons in the first nine months, against 110,303 tons a year earlier. Sangilo reported a gold ore grade of 3.34 grams per ton and a gold recovery rate of 86.29% in the same period.

Apex Mining said in its disclosure that the Maco Mine has sufficient reserves to continue at the targeted production rate of 3,000 tons per day until 2034.

The company is upgrading its Maco processing plant to increase its capacity to 3,500 tons per day and is continuing exploration and development activities.

Apex also said the ISRI Sangilo Mine is currently working on the remaining pre-operation permits for a 434-hectare tenement in Itogon, Benguet.

The company added that the company’s acquisition of Asia Alliance Mining Resources Corp. could expand its gold resources.

On Tuesday, Apex Mining shares closed 6 centavos, or 0.59%, higher at P10.30. — Vonn Andrei E. Villamiel