LEPANTO CONSOLIDATED MINING COMPANNY AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

2015

2014

2013

2012

ASSETS
Current Assets
Cash
Receivables - net
Inventories
Advances to suppliers and contractors
Other current assets - net
Total Current Assets

Noncurrent Assets
Proprety, plant and equipment
Available-for-sale financial assets
Investment in and advances to associates
Mine exploration costs
Deferred tax assets - net
Other noncurrent assets
Total Noncurrent Assets

66,387
306,755
520,387
442,810
614,741
1,951,080

385,282
264,622
556,789
426,630
587,172
2,220,495

88,054
109,736
510,317
453,957
551,437
1,713,501

101,837
95,227
662,473
512,670
579,688
1,951,895

6,974,495
477,155
566,831
6,521,173
431,716
71,441
15,042,811

7,134,462
188,158
683,665
6,125,219
474,679
82,420
14,688,603

7,362,170
142,374
559,282
5,890,750
406,115
38,604
14,399,295

7,347,458
168,341
567,731
5,004,255
283,789
30,662
13,402,236

16,993,891

16,909,098

16,112,796

15,354,131

1,422,554
891
1,423,445

1,248,351
111,610
1,341
1,361,302

1,042,241
99,584
613
1,142,438

1,180,250
25,451
6,588
1,212,289

Noncurrent Liabilities
Advances from Far Southeast Services Limited
Long-term borrowings
Liability for mine rehabilitation cost
Retirement benefits liability
Deferred tax liabilities - net
Stock subscription payable
Deposit for future subscriptions
Total Noncurrent Liabilities

5,843,343
47,060
65,095
1,782,137
229,036
107,784
69,200
8,143,655

5,712,516
44,720
53,830
1,941,275
228,040
107,784
69,200
8,157,365

5,587,315
22,198
50,107
1,562,341
223,391
107,784
69,200
7,622,336

4,546,990
89,489
47,996
1,166,252
178,714
107,784
69,200
6,206,425

Total Liabilities

9,567,100

9,518,667

8,764,774

7,418,714

TOTAL ASSETS
LIABILLITIES AND EQUITY
Current Liabilities
Trade and other payables
Short-term borrowings and other interest bearing liabilities
Income tax payable
Total Current Liabilities

Equity attributable to the equity holders of the Parent Company

Capital stock
Additional paid-in capital
Re-measurement loss on retirement benefits liability
Net unrealized loss on AFS financial assets
Deficit
Total Equity attributale to the equity holders of the Parent Company
Non-controlling interests
Total Equity
TOTAL LIABILITIES AND EQUITY

5,134,706
4,336,231
(521,258)
(44,735)
(1,728,477)
7,176,467
250,324
7,426,791

16,993,891

4,520,255
4,336,237
(595,768)
-251,516
(869,496)
7,139,712
250,719
7,390,431
16,909,098

4,344,343
3,552,937
(337,097)
(306,670)
(151,130)
7,102,383
245,639
7,348,022
16,112,796

4,344,343
3,552,937
(86,135)
(296,826)
193,845
7,708,164
227,253
7,935,417
15,354,131

2011

451,204
218,577
609,049
414,200
319,785
2,012,815
7,215,039
145,687
540,459
2,378,037
80,639
32,327
10,392,188

12,405,003

2,937,664
47,007
150
2,984,821
375,935
43,840
483,452
113,284
107,784
1,124,295
4,109,116

4,332,408
3,528,040
367,597
(304,051)
135,192
8,059,186
236,701
8,295,887

12,405,003

2015
Profitability Ratios:
Return on assets (5.06%)
Return on equity (11.57%)
Gross profit margin (42.17%)
Net profit margin (70.67%)
Liguiditv and Solvenci Ratios:
Current ratio 1.37:1
Quick ratio 0.57:1
Solvency ratio (0.09:1)
Financial Leverage Ratios:
Asset to equity ratio 2.29:1
Debt to equity ratio 1.29: I
Interest coverage ratio 7.59:1
2014
-4.22%
-9.65%
-28.49%
-48.12%
1.63:1
0.79: 1
0.00:1
2.29:1
1.29:1
(7.58):1

2014 2013
Profitability Ratios:
Return on assets (4.22%) (2.03%)
Return on equity (9.65%) (4.45%)
Gross profit margin (28.49%) (12.96%)
Net profit margin (48.12%) (27.78%)
Liguidi!.J and Solvency Ratios:
Current ratio 1.63:1 1.49: I
Quick ratio 0.48:1 0.17:1
Solvency ratio 0.00:1 0.20:1
Financial Levera2;e Ratios:
Asset to equity ratio 2.29:1 2.19:1
Debt to equity ratio 1.29:1 0.01:1
Interest coverage ratio (7.02):1 0.02:1

2013 (As restated)

Profitability Ratios:
Return on assets (2.03%) 0.77%
Return on equity (4.45%) 1.49%
Gross profit margin (12.96%) (0.20%)
Net profit margin (27.78%) 11.30%
Liguidity and Solvencx Ratios:
Current ratio 1.49:1 1.61:1
Quick ratio 0.17:1 0.16:1
Solvency ratio 0.20:1 0.14:1
Financial Leverage Ratios:
Asset to equity ratio 2.19:1 1.93:1
Debt to equity ratio 0.01:1 0.01:1
Interest coverage ratio 0.02:1 11.55:1

2012 2011
Profitability Ratios:
Return on assets 1.76% 2.05%
Return on equity 2.81% 3.83%
Gross profit margin 11.37% 14.19%
Operating profit margin 18.12% 17.2
Net profit margin 10.69% 14.36%
Liguiditv and Solvency Ratios:
Current ratio 1.61:1 0.60:1
Quick ratio 0.20:1 0.32:1
Solvency ratio 0.15:1 0.13:1
Financial Leverage Ratios:
Asset to equity ratio 1.73:1 1.49:1
Debt ratio 0.42:1 0.39:1
Debt to equity ratio 0.73:1 0.49:1
Interest coverage ratio 11.55:1 7.30:

ssets 1.76% 2.05%

quity 2.81% 3.83%
margin 11.37% 14.19%
rofit margin 18.12% 17.21%
argin 10.69% 14.36%
d Solvency Ratios:
o 1.61:1 0.60:1
0.20:1 0.32:1
io 0.15:1 0.13:1
verage Ratios:
ity ratio 1.73:1 1.49:1
.42:1 0.39:1
ty ratio 0.73:1 0.49:1
erage ratio 11.55:1 7.30:1

LEPANTO CONSOLIDATED MINING COMPANNY AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2015

2014

2013

Revenues

Sale of metals
Service fees and other operating income

Total Revenue

1,149,630

1,431,487

66,486

50,804

1,216,116

1,482,291

2,025,213
90,495
2,115,708

Cost of Sales

(1,528,353)

(1,780,041)

(2,038,855)

Cost of Sales

(200,659)

(124,560)

(173,097)

Operating Expences

(248,916)

(195,063)

(177,942)

Finance Cost

(110,901)

(90,956)

(73 ,324)

(19,417)

16,543

60,876

71,363

15,897

1,322

{20,579}

{13,481)

(4,737)

(841,346)

(689,370)

Foreign echange gains (loss) -net

Other Income
Share in Net Losses of Associates
Loss before Income Tax

(290,049)

Provision for Income tax

Current
Deferred

(6,407)
(11,623)

NET LOSS

(5,023)
(18,893)

(6,479)
(30,061)

(859,376)

(713,286)

(326,589)

(858,981)
(395)
(859,376)

(718,366)
5,080
(713,286)

(344,975)
18,386
(326,589)

Net income (loss) attributable to:

Equity holders of the Parent Company
NCI
Othe Comprehensive Income:
Item that will be reclassified to profit or loss in subsequent periods:
Unrealized gain (loss) on AFS financial assets

206,781

55,154

(9,844)

74,510

(258,671)

(250,962)

(916,803)

(587,395)

Item that will not be reclassified to profit or loss in subsequent periods:

Remeasurement gain (loss) on retirement benefits liability

-Php578,085.00

TOTAL COMPREHENSIVE LOSS

Total comprehensive income (loss) attributable to:
Equity holders of the Parent Company

(577,690)

(921,883)

(605,781)

Non-controlling interes

(395)
(578,085)

5,080
(916,803)

18,386
(587,395)

BASIC/DILUTED LOSS PER SHARE

(0.0180)

(0.0160)

(0.0079)

2012

2,130,468
151,457

2,281,925

2011
1,581,580
189,574
1,771,154

(1,887,257)

(1,433,965)

(190,741)

(65,661)

(208,468)

(196,566)

(59,422)

(108,291)

243,922

(10,492)

9,450

263,656

(431)

194,868

188,978

414,703

(13,545)
(57,028)

(3,563)
(50,805)

118,405

360,335

58,653
59,752
118,405

367,045
(6,710)
360,335

7,225

50,007

(453,732)

365,024

(328,102)

775,366

(387,854)

782,108

59,752
(328,102)

(6,742)
775,366

0.0014

0.0078

LEPANTO CONSOLIDATED MINING COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
Attributable to Equity: Holders of the Parent Company:
Capital Stock
Issued

Balances at January 1, 2015

Subscribed

5,129,325

Additional Paid-in
Capital

Sub-total

(609,070)

Issuance/subscription of shares

614,451

Net loss

Other comprehensive income (loss)

Total comprehensive income (loss)

4,520,255
614,451

Remeasurement loss
on retirement

4,336,237

Net Unrealized loss

on AFS Financial
Assets

(595,768)

(251,516)

(6)

###

###

###

###

74,510

206,781

###

74,510

206,781

Retained earning
(Deficit)

(869,496)
(858,981)
(858,981)

Balances at December 31, 2015

5,129,325

5,381

5,134,706

4,336,231

(521,258)

(44,735)

(1,728,477)

Balances at January 1, 2014

4,339,079

5,264

4,344,343

3,552,937

(337,097)

(306,670)

(151,130)

Issuance/subscription of shares

790,246

(6,143,342)

175,912

783,300

###

###

Net loss

###

(718,366)

Other comprehensive income (loss)

###

(258,671)

55,154

Total comprehensive income (loss)

###

(258,671)

55,154

(718,366)

Balances at December 31, 2014

5,129,325

(6,138,078)

4,520,255

4,336,237

(595,768)

(251,516)

(869,496)

Balances at January 1, 2013

4,339,079

5,264

4,344,343

3,552,937

(86,135)

(296,826)

193,845

Net loss

###

###

(344,975)

Other comprehensive income (loss)

###

(250,962)

(9,844)

Total comprehensive income (loss)

###

(250,962)

(9,844)

(344,975)

Balances at December 31, 2013

4,339,079

5,264

4,344,343

3,552,937

(337,097)

(306,670)

(151,130)

Balances at January 1, 2012

4,329,953

2,455

4,332,408

3,528,040

367,597

(304,051)

135,192

11,935

Issuance/subscription of shares

24,897

###

Net loss

9,126
-

2,809
-

###

###

Other comprehensive income (loss)

###

(453,732)

7,225

58,653
-

Total comprehensive income (loss)

(453,732)

Reclassification adjustments

###

Balances at December 31, 2012

Balances at January 1, 2011

Issuance/subscription of shares

4,339,079
3,305,557
1,024,396

5,264
9,947
(7,492)

7,225
-

58,653
###

3,099,205

374,822

(245,398)

194,944

3,315,504

1,495,928

2,573

(354,090)

(231,853)

1,016,904

2,030,239

###

###

###

Other comprehensive income (loss)

###

365,024

50,039

Total comprehensive income (loss)

365,024

50,039

Acquisition of NCI

4,329,953

2,455

4,344,343

Net loss

Balances at December 31, 2011

59,752

4,332,408

1,873
3,528,040

367,597

###
(304,051)

367,045
367,045
135,192

NCI

TOTAL

250,719

7,390,431

614,445

(395)

(859,376)

281,291

(395)

(578,085)

250,324

7,426,791

245,639

7,348,022

5,080
5,080

959,212
(713,286)
(203,517)
(916,803)

250,719

7,390,431

227,253

7,935,417

18,386
18,386

(326,589)
(260,806)
(587,395)

245,639

7,348,022

236,701

8,295,887

59,752
-

36,832
118,405
(446,507)

59,752

(328,102)

(69,200)

(69,200)

227,253

245,995

4,474,057

3,047,143

7,935,417

(6,710)

360,335

(32)

415,031

(6,742)

775,366

(2,552)

(679)

236,701

8,295,887

LEPANTO CONSOLIDATED MINING COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
2015
CASH FLOWS FROM OPERATING ACTIVITIES
Loss before income tax
Adjustment for:
Depletion, depreciation and ammortization
Finance costs
Share in net losses of associates
Movement in retirement benefit liability
Unrealized foreign exchnge losses- net
Gain on disposal of property plant and quipment and other investments
Gain on disposal of investment in associates
Interest income
Loss on sale of AFS financial assets
Dividend income
Other income
Gain on change in estimate
Operating income (loss) befire working capital
Decrease (increase) in:
Receivables
Inventories
Advcances to supplier and contractors
Other current asset
Increase (decrease) in trade and other payables
Net cash flows from operations
Interest received
Income tax paid
Net cash flows from operations
CASH FLOWS FROM INVESTING ACTIVITIES
Additions to:
Property, plant and equipment
Mine exploration cost
Investment in associates
AFS investments
Advances to an associate:
Extension of advances
Collection of advances
Proceeds from disposal of:
Property, plant and equipment

(841,346)
708,741
110,901
20,579
(135,170)
(5,824)
(2,699)
(1,427)
(503)
(146,748)

2014
(689,370)
734,467
90,956
13,481
(45,969)
1,255
(32)
(360)
2,638
(75)
(13,916)
93,075

2013
(290,049)
761,656
73,324
4,737
(10,076)
(14,310)
(108)
(248)
(200)
524,726

2012
377,821
744,979
35,796
505
(154,305)
61,397
(2,678)
(3,423)
1,060,092

(43,126)
36,402
3,254
(27,569)
241,763
63,976
503
(6,857)
57,622

(154,872)
(46,472)
27,327
(35,735)
234,821
118,144
360
(4,295)
114,209

(14,509)
152,156
58,713
28,251
(58,928)
690,409
248
(12,454)
678,203

123,350
(53,424)
(98,470)
(259,903)
(1,753,502)
(981,857)
3,423
(7,472)
(985,906)

(543,818)
(393,431)
-

(495,801)
(229,993)
(136,605)
-

(812,754)
(886,495)
(11,250)
-

(865,870)
(2,626,218)
(13,668)
-

2,281

(2,035)
-

1,731
-

1,964

4,132

5,991

10,325

13,590

Investment in associates
Decrease (increase) in other non current assets
Dividends received
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Changes in advances from FSE
Proceeds from issuance of share
Availment of additional loans
Payments of:
Borrowings
Interest income
Dividens
Net cash flows from financing activities

12,285
10,979
(907,572)

(43,816)
75
(902,184)

(7,942)
200
(1,706,185)

1,662
(3,488,540)

130,827
614,445
-

125,201
959,212
64,250

1,040,325
25,000

4,171,055
36,832
-

(109,201)
(105,016)
531,055

(30,190)
(33,259)
(11)
1,085,203

(25,451)
(25,675)
1,014,199

(47,007)
(35,796)
(5)
4,125,079

(13,783)
101,837

(349,367)
451,204

385,282

88,054

101,837

NET INCREASE (DECREASE) IN CASH

CASH AT BEGINNING OF YEAR

(318,895)
385,282

CASH AT END OF YEAR

66,387

297,228
88,054

2011

263,138
304,294
41,760
(195,475)
(81,428)
18,227
(37,774)
(23,051)
(24)
(44,732)
244,935

(15,237)
(140,423)
(292,226)
(120,566)
477,128
153,611
23,051
(9,801)
166,861

(953,504)
(1,553,295)
(8,256)
(17,016)
(783)
51,294

(13,678)
24
(2,495,214)

192,197
3,047,143
(417,555)
(69,231)
(19)
2,752,535

424,182
27,022

451,204

KEY INDICATOR PERFMANCE

FORMULA

FOR THE YEAR ENDED DE

2015
2014

1. Liquidity Ratios
Current ratio
Quick ratio
Solvency ratio

Current asset
Current liabilities
(Current asset - Inventory Prepayments)
Current liabilities
Total assets
Total liabilities

2. Financial Leverage Ratios

Debt ratio
Debt-to-Equity ratio
Interest coverage
Asset-to-Equity

Total debt
Total assets
Total debt
total stockholder's equity
EBIT
Interest Charges
Total assets
Total stockholde's equity

3. Profitability ratio
Gross profit margin
Net profit margin
Return on assets
Return on Equity
Price/Earnings ratio

Gross profit
Sales
Net profit
Sales
Net income
Total assets
Net income
Total stockholder's equity
Price per share
Earnings per common share

#DIV/0!

THE YEAR ENDED DECEMBER 31

2013
2012
2011