Lepanto Consolidated Mining Co.

September 1, 1999 PSE CIRCULAR FOR BROKERS NO. 2193-99 SUBJECT : Lepanto Consolidated Mining Co . Attached are copies of the amendments to Lepanto Consolidated Mining Co.'s ("LC") SEC Form 11-A/Annual Report for the fiscal year ended December 31, 1998 incorporating by reference into its audited financial statements the following: 1. Breakdown of Company's Receivables-Others, as Annex "B"; 2. Breakdown of Company's Accounts Payable and Accrued Expenses, as Annex "C"; and 3. Breakdown of Costs and Expenses, as Annex "D". For your information. (SGD.) ATTY. RUBEN L. ALMADRO Officer-in-Charge ANNEX B LEPANTO CONSOLIDATED MINING COMPANY ACCOUNTS RECEIVABLE-OTHERS DECEMBER 31, 1999 VS 1998 VALUE-ADDED TAX P133,105,000 P121,195,000 SUBSIDIARIES/AFFILIATES 68,475,000 51,741,000 CONTRACTORS 70,460,000 26,000,000 MISCELLANEOUS DEPOSITS 6,000,000 5,000,000 MISCELLANEOUS RECEIVABLES 1,500,000 300,000 P279,540,000 P204,236,000 ========== ========== ANNEX C LEPANTO CONSOLIDATED MINING COMPANY ACCOUNTS PAYABLE AND ACCRUED EXPENSES DECEMBER 31, 1998 TRADE CREDITORS P185,131,000 CONTRACTORS/NON-TRADE CREDITORS 123,542,000 ACCRUED PENSION 33,151,000 SUBSIDIARIES 22,279,000 ACCRUED PAYROLL 17,128,000 ACCRUED PRODUCTION TAX 8,736,000 ACCRUED EXPENSES 1,880,000 WITHHOLDING TAXES/SSS/PAG-IBIG FUND 1,933,000 ACCRUED INTEREST 777,000 VALUE-ADDED TAX PAYABLE 568,000 P395,125,000 ========== ANNEX D LEPANTO CONSOLIDATED MINING COMPANY COST AND EXPENSES DECEMBER 31, 1998 VS. 1997 1998 1997 Mining P246,591,199 P128,196,182 Milling 183,079,254 107,271,899 Smelting, refining & other related charges 1,649,698 230,342,330 Depreciation 129,820,767 39,881,288 Depletion 120,763,584 54,191,098 Production Tax 34,503,311 22,857,804 Overhead 228,611,242 131,937,978 Administration 126,257,107 62,288,848 Interest, net 101,526,257 93,075,373 1,172,802,419 870,042,800 Decrease / (Increase) in Inventories 179,496,483 225,848,988 Total Cost & Expenses P1,352,298,902 P1,095,891,788 ============ ===========