Razon-led Apex Mining Co. Inc. expanded its earnings by 68 percent in the first six months of the year to more than ₱5 billion, as higher metal prices offset weaker output and increased production costs.

Based on its financial report on Wednesday, Aug. 12, the net income of the listed mining firm rose to ₱5.39 billion from January to June from ₱3.20 billion in the same period last year.

Apex Mining attributed the increase to revenues, which grew by 35 percent to ₱12.84 billion from ₱9.50 billion on the back of strong average realized prices for both gold and silver.

Gold prices soared by nearly half to $4,656 per ounce in the first half from last year’s $3,121 per ounce, while silver prices more than doubled to $77.67 per ounce from $33.18 per ounce.

Higher metal prices more than made up for the decline in gold sales volumes, which dropped 16 percent to 43,215 ounces from 51,436 ounces. Silver sales also slipped 22 percent to 154,946 ounces from 197,925 ounces.

The metals were sourced from Apex Mining’s Maco mine in Davao de Oro and its Sangilo mine in Benguet, operated by wholly owned subsidiary Itogon-Suyoc Resources Inc.

Operating costs for the mines reached ₱4.83 billion during the six-month period, up 14 percent from ₱4.23 billion a year ago, driven by the processing of higher ore tonnage, which consumed more power and materials.

“Through the ups and downs of our business, we remain committed to the welfare of our host communities and LGUs (local government units) as well as our partner IPs (Indigenous Peoples),” said Apex Mining President and Chief Executive Officer Luis Sarmiento.

The company paid ₱536.59 million in total excise taxes to the government by the end of June, a 48-percent increase year-on-year from ₱363.42 million.

IP surface rights royalties, IP royalties, taxes, licenses, and permits rose 43 percent to ₱103.89 million, while total expenses for the social development and management program reached 1.5 percent of the preceding year’s operating costs.

Apex Mining is currently upgrading the crushing and grinding infrastructure at its Maco processing plant to expand capacity to 3,500 tons per day (tpd) while ongoing exploration and development work seeks to boost existing resources.

Assuming a steady production rate of around 3,000 tpd, the Maco mine holds enough reserves and resources to operate until 2034.