Razon-led Apex Mining Co., Inc. posted a 94 percent jump in consolidated net income in the first quarter of the year, overcoming weaker production and lower gold sales volumes as soaring gold prices lifted earnings.

The listed mining firm said Thursday net income climbed to P2.82 billion in the January-to-March period from P1.45 billion a year earlier, or P1.37 billion higher than its earnings in the first quarter of 2025.

The strong performance came despite a 20 percent decline in gold sold during the quarter.

Apex Mining sold 20,354 ounces of gold in the first three months, lower than the 25,362 ounces sold in the same period last year. 

However, the average realized gold price surged to $4,909 per ounce from $2,953 per ounce in the comparable period in 2025, cushioning the impact of softer output.

Ore gold grade at the company’s Maco mine also declined, averaging 2.43 grams per tonne in the first quarter, compared with 3.16 gpt in the same period last year.

Apex Mining President and CEO Luis R. Sarmiento said the lower ore grade was due to lean zones encountered during mining operations.

“Once completed, this tunnel will provide access to deeper ore blocks while improving water and ventilation systems, thereby enhancing the working environment and safety of our miners as we work in the lower levels where higher-grade deposits are expected to be located,” Sarmiento said, referring to the Tagbaros Drain and Ventilation Tunnel project.

The company is preparing for higher capital expenditures over the next few years as it pushes ahead with the expansion of the Maco mine and the development of the copper project under its subsidiary Asia-Alliance.

Apex Mining said the Asia-Alliance copper project is expected to require approximately $300 million in capital expenditures, including plant development and construction costs, before commercial operations begin. The amount is expected to be disbursed evenly over the next three years.

Meanwhile, the upgrade of the Maco mine’s capacity from 3,000 tonnes per day to 3,500 TPD is ongoing and is estimated to cost around PHP100 million. Apex Mining said the amount is already part of its regular capital expenditure program.

Despite geopolitical tensions arising from the ongoing Unite States-Iran conflict, Sarmiento said the company’s operations remain resilient, noting that fuel accounts for only around four percent to five percent of total production costs.

“We also continue to identify and develop reliable alternative sources of fuel to mitigate the potential impact of the volatility in oil prices and supply on our operations,” Sarmiento added.