Apex Mining Co. Inc. said Friday it drew down P2.5 billion from a seven-year term loan facility with the Philippine National Bank.
Apex said in a disclosure to the stock exchange it would use proceeds from the loan to immediately prepay the company’s outstanding short-term loan of P2.25 billion from BDO Unibank, Inc.
“This effectively converts part of the company’s short-term bank loan obligations into long-term, thereby improving the company’s financial position,” the mining firm said.
Apex Mining to date has other outstanding short-term bank loans with Union Bank of the Philippines amounting to $8 million (P407 million) and with Rizal Commercial Banking Corp. totaling P405 million.
Apex registered a consolidated net income of P305 million in the third quarter of the year, up five percent from P291 million year-on-year on higher mineral production.
Revenues reached a record P3 billion during the period, up 11 percent from P2.7 billion on year, as the Maco mine in Compostela Valley topped it previous record in milling throughput to 428,146 tons, or a daily average of 1,659 tons.
Apex is rehabilitating the Sangilo mine of Itogon-Suyoc Resources Inc., a wholly-owned subsidiary of the company.
The mine while under rehabilitation runs its old mill, producing an the average of about 60 tons daily, or 1,284 ounces of incidental gold valued at P82 million in the first nine months of 2017.
The Sangilo mine has an initial milestone target of 200 tons per day production before hitting 400 tons a day and eventually reaching the installed capacity of 1,900 tons daily within the next five years.