Lepanto profit doubles on higher metal prices

MANILA, Philippines — Lepanto Consolidated Mining Co.’s net income more than doubled to P1.59 billion in the first semester of 2026 despite mixed metal production, buoyed by higher gold and silver prices.

In a disclosure on Tuesday, the Felipe Yap-led listed gold producer said first-half revenues climbed by 47 percent to P3.24 billion.

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Elevated metal prices bolstered Lepanto’s earnings. The average realized gold prices surged by 51.8 percent to $4,684.40 per ounce while silver more than doubled to $80.66 per ounce.

During the period, the company’s metal production declined, with gold dropping by 7 percent to 10,931 ounces and silver by 9.2 percent to 21,518 ounces.

Cost of sales increased by about 20 percent to P1.47 billion, mainly because of higher mining costs, overhead and production sales.

Cost of services went up by 9.6 percent to P34 million primarily because of higher materials and supplies costs, equipment repairs and maintenance, along with increased security personnel expenses.

READ: Lepanto mining rides soaring gold prices

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Meanwhile, operating expenses reached P151 million, up 17 percent, on account of higher doubtful accounts provisions, contracted services, security costs, travel expenses and depreciation.

“We continue to produce from the Victoria and Teresa orebodies. Efforts to further improve productivity and metal recoveries through equipment upgrades or rehabilitation continue,” the firm said.

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“There are five active rigs drilling for both grade control and exploration with encouraging results,” it added.

Last month, Lepanto and its subsidiary Far Southeast Gold Resources Inc. (FSGRI) signed a 25-year memorandum of agreement with the indigenous communities of Mankayan Ancestral Domain.

The agreement grants the free and prior informed consent (FPIC) for the renewal of Mineral Production Sharing Agreement (MPSA) No. 001-90-CAR covering the mining project of Lepanto and FSGRI in the town of Mankayan.

It will be submitted to the National Commission on Indigenous Peoples, one of the requirements for Lepanto’s MPSA renewal.

The deal outlines a monthly royalty equivalent to 1 percent of gross output and a one-time payment of P110 million for various projects, including the construction of an IP building, to the host communities. /pai