Lepanto incurs net loss of P214 M in Q1

Lepanto Consolidated Mining Co. has increased its net loss to P214 million in the first quarter of the year amid lower revenues and production.

Lepanto said net loss for the January to March period increased by 36 percent to P214.4 million as metal sales went down to P422 million.

Gold production decreased to 2,744 ounces from 6,693 ounces, while silver production went down to 10,827 ounces from 27,201 ounces.

Copper production also declined to 618,422 pounds from last year’s 844,539 pounds.

Lepanto said silver prices were higher at $17.44 per ounce, up by 10 percent, while gold price increased to $1,559 per ounce. The average copper price, however, slightly went down to $2.71 per pound.

Major cost and expenses decreased by 13 percent to P644 million due to lower tonnage mined and milled. Milling cost, depletion and depreciation, and overhead cost also went down.

Capital expenditures for the threemonth period amounted to P62.4 million, the bulk of which was allotted for machinery and equipment.

Lepanto said no further copper production is expected for the rest of the year.

Amid the favorable gold price, Lepanto is focusing on gold production from its Teresa and Victoria deposits as exploration drilling continues.

Its carbon-in-pulp plant is also undergoing rehabilitation to raise overall gold recovery and reduce operating costs.

The company, which operates in Benguet, is primarily engaged in the exploration and mining of gold, silver, copper, lead, zinc and all kinds of ores, metals, minerals, oil, gas, coal and their related by-products.

The mining firm sells its output to Hong Kong, Canada, Peru and China, among others.