| Listed mining companies post smaller losses in first quarter |
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| Wednesday, 26 May 2010 08:00 | |||
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THREE LISTED mining companies reported smaller losses for the first quarter of 2010 due to foreign exchange gains and decreased operating expenses, disclosures to the Philippine Stock Exchange showed.
The miner said it gained P43.1 million from currency movements during the quarter, as compared to a loss of P29.4 million last year. The company posted higher operating costs and expenses, at P64 million, from last year's P55 million. Operating revenues meanwhile increased to P48 million from January to March from P32 million in the same period last year due to higher sales of gold from the firm's Acupan Contract Mining Project. The company said it expects an improvement in its cash flow as the Acupan Contract Mining Project continues to improve gold production, while the Irisan Lime Project continues to operate with a steady market for quicklime. Meanwhile, Benguet's Sta. Cruz Nickel Project continues to take advantage of the rise in nickel prices, with assured markets for three years for low grade nickel and high grade iron ores. Benguet told the bourse it had signed off-take agreements with the Consunji-led DMCI Mining Corp. and Sino Phil (Surigao) Group Ltd. United Paragon Mining Corp., meanwhile, posted a smaller net loss of P10.46 million in the first quarter from last year's P12.84 million, also due to foreign exchange gains as the peso appreciated versus the dollar from January to March. General and administrative expenses increased by 26% to P3.4 million for the quarter, from P2.7 million in the same period last year. The increase in expenses was attributed to the renewal of the environmental compliance certificate of the company's Longos mine located in Camarines Norte. The miner is working for the completion of its mineral production sharing agreement with the Mines and Geosciences Bureau to be able to continue drilling at San Mauricio in Jose Panganiban town, also in Camarines Norte. The miner submitted documents for the mineral production sharing agreement in 2005, but they were returned by the government agency under the Environment department in December 2009 due to various deficiencies. Meanwhile, Dizon Copper-Silver Mines, Inc. reported a loss of P1.61 million for the first quarter, smaller than the P2.28-million loss last year due to a decrease in the company’s operating expenses for the January to March period. Total mine site and administrative expenses decreased by 41% to P1.84 million in the first quarter of 2010, from P2.59 million in the same period last year. The company said continued implementation of cost-cutting measures contributed to the reduction in expenses. The miner has no active mine, and operations in its Zambales mineral claim remain suspended since 1997. -- Kathleen A. Martin Source: Business World, May 26, 2010
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