Pasig—(PHStocks)—Publicly listed Apex Mining Co., Inc. (APX) is now advancing towards the completion of its expansion project to increase its output. Dubbed as Apex 3000, the project will expand the company’s current processing capacity of 850 tons per day to 3,000 tons per day by the end of 2013. The objective is to gradually increase ore production over the next two years to lower the production cost per ounce.
“The plant construction, started in June 2012, has reached 36% physical completion, while civil works and structures are ready for the equipment installation,” said Apex Mining Chairman Benoit de Galbert. He also mentioned that half of the future mining fleet is now operational and underground mine development is under way to open new production zones.
Apex President Baiverth Diabo attributed this first quarter expansion achievement to the gold mining company’s success in generating cash from operations to continue funding expenditures for the APEX 3000 project. “Although we posted a net loss of P29.2 million in the first quarter of 2013, we managed to pay expansion expenditures amounting to P722 million as we were able to generate cash of P720 million from our operations during the first three months of the year,” Diabo said.
Several factors have contributed to the mining company’s net loss including the appreciation of the Philippine peso and the decrease in the price of gold. Late last year, Typhoon Pablo which devastated parts of Mindanao including the Compostela Valley also affected operating conditions due to landslide and Apex’s priority in helping rebuilding roads and electrical infrastructures affected by the catastrophe.