Lepanto Consolidated hits the ceiling after bullish net income guidance

Lepanto Consolidated [LC 0.13 ?49.4%; 1570% avgVol] [link], a mining and oil exploration company, put out an “interim” report on its year-to-date net income, as disclosed to its shareholders at its shareholders’ meeting. According to LC, as of the end of May 2025, it has recorded P659 million in net income so far in FY25, up 4,018% y/y from just P16 million from the same January-to-May period last year. LC attributed the massive spike in profitability to a 23% surge in gold produced (8,258 ounces to 10,151 ounces) and a 39% increase in the price received during gold sales activity ($2,182 to $3,035). LC’s shares gained steam through yesterday’s trading session, hitting the ceiling at around 11 AM.

MB BOTTOM-LINE:  It’s been a dreadful market for a long time, so if there are any new traders out there who haven’t seen a “ceiling” move before, let me explain that quickly. The PSE has a hard limit on how much a stock can increase or decrease in value in one day. For increases, the limit is set at the previous closing price plus 50%. For decreases, it’s the previous closing price minus 30%. The ceiling is just a limit, though, so hitting it doesn’t impact the ability of traders to transact at the limit price, or any price lower than the limit price; it just prevents trades from completing at a price higher than the ceiling limit. Getting to LC’s situation specifically, it’s interesting because they had already disclosed their Q1 results in May which were fantastic, with P390 million in net income (up from a net loss of P17 million in Q1/24, and up from the P29 million in net income it made the previous quarter). But this disclosure says that they’ve made an additional P269 million in net income in just the two months that have followed that breakout Q1 report. They’re taking in an average of P134.5 million in net income per month so far in Q2, up from their P130.0 million/month from Q1. That’s amazing.