Lepanto suffers P24.6M loss in first half

First posted 04:12pm (Mla time) Aug 03, 2006
Xinhua Financial News Service

http://news.inq7.net/archive_article/index.php?ver=1&index=1&story_id=13305

LEPANTO Consolidated Mining Co. said its net loss narrowed to 24.6 million pesos in the first half to June from 172.1 million a year ago, as gains from higher gold prices softened the impact of lower output from a year ago and an interest payment.

Despite remaining in the red over the first six months, Lepanto said it expected to achieve full year net profit of 104 million pesos, recovering from last year's net loss of 410 million.

"The (first half) loss was mainly due to (reduced) gold production and the payment of interest due on the Gold Delivery Agreement with Dresdner Bank AG," the company said in its stock rights offering prospectus filed with the stock exchange.

But this was partly offset by an increase in the average gold price to 592.59 dollar per ounce from last year's average of 426.29.

Lepanto produced a total of 28,153 ounces of gold in the first half compared to 30,760 for the same period last year.

Under its rights offering program, the company will offer shareholders one share at 20 centavos apiece for every eight shares held in the firm as of August 16. The offering will run from September 11 to 20. Net proceeds of about 636 million pesos will be used to repay bank loans and advances from shareholders and to settle employee-related accounts.

Lepanto A shares, restricted to Filipinos, closed down 0.01 peso at 0.27. Its B shares, available to both local and foreign investors, were steady at 0.30.

(One dollar = 51.64 pesos)
Related Site:LEPANTO Consolidated Mining Co.