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Weir Minerals Launches Multiflo® Mudflorm Submersible Pump for Large Particle Handling
by Philippine Resources - July 01, 2021
Multiflo® MudfloTM pump and dredge unit before installation in Indonesia
Weir Minerals, global leader in the provision of mill circuit technology, dewatering solutions and services, has launched the new Multiflo® MudfloTM hydraulic submersible slurry pump. Engineered for abrasive applications and large particle handling, the Multiflo® MudfloTM pump features a hydraulically driven wet-end specifically designed to efficiently and safely reprocess and relocate tailings ponds, maintain water retention dams and manage slimes and sludge ponds.
The innovative solution combines the Warman® MGS pump-end, Multiflo® CB32 hydraulic cutters and ESCO® excavation teeth to provide efficient pumping of highly charged and abrasive slurries.
Weir Minerals' unique Ultrachrome® A05 chrome alloy impeller ensures high wear resistance and the specially engineered suction strainer minimises the risk of clogging by preventing large solids & debris from entering the pump. Drawing on decades of Warman® pump design experience, the Multiflo® Mudflo™ pump is capable of pumping between 150 and 1,200m3/h, up to 82m head.
The Multiflo® CB32 hydraulic cutters feature market-leading ESCO® Ultralok® tooth system to prevent premature breakage, avoid tooth loss and protect the integral locking system to ensure the continuous operation of the pump.
Engineered by the Weir Minerals dewatering pump experts in Australia, it is available for global customers from July 2021.
“The Multiflo brand is synonymous with high quality and long-lasting equipment. In designing the Mudflo pump, our dewatering experts drew from the very best Multiflo, Warman and ESCO technology and used advanced hydraulics to create an innovative and cost-effective new solution for mine dredging applications,” Cameron Murphy, Director of Dewatering Weir Minerals APAC said.
Weir Minerals understands that success is built from enduring partnerships based on close collaboration and a mutual commitment to safety and technical excellence.
“It is not uncommon for sites to use a combination of pumps, shovels, excavators and trucks for dredging applications. When one of our long-time partners in Indonesia contacted us about developing a custom solution for the slurry build-up in their sumps, we knew we could provide a better solution,” Geoff Way, Weir Minerals Dewatering Specialist said.
“We’re problem solvers. We considered our customer’s pain points and engineered a new solution to efficiently and safely manage their site processes,” he said.
The Multiflo® MudfloTM pump can also be retrofitted to competitor OEM equipment; the quick-hitch plate attachment ensures convenient installation and removal from hydraulic excavators.
The Multiflo® Mudflo™ pump can be assembled on land, eliminating the safety risks associated with assembling pumps over water. Furthermore, the new hydraulic hose management system reduces the risk of hose entanglement and trip hazards, all the while providing a reliable hose bend radius to ensure smooth oil flow.
The Multiflo® MudfloTM pump will be available globally from July 2021. Discover more at https://info.global.weir/mudflo
Philippine Resources - May 11, 2021
New Report Identifies Major Carbon Reduction Opportunities in Global Mining
New analysis lays out the scale of the mining industry’s energy use and identifies ways it can be reduced using currently available technologies Materials such as copper, lithium and nickel play an essential role in the technologies like electric vehicles and renewables that will help the world meet its decarbonisation targets As demand for these metals increases, the mining industry must itself become more efficient and environmentally sustainable The global mining industry must move away from legacy systems and processes if it is to meet the challenge of decarbonisation, according to a new report released today which calculates mining’s share of global energy consumption and identifies ways the industry can aid the transition to net zero emissions needed to limit temperatures in line with the Paris Agreement. The report, commissioned by the Weir Group plc, analyses mine energy data from over 40 published studies to give a comprehensive understanding of where energy is consumed in mining and minerals processing. It shows that the total amount of power used by the mining industry – which plays an essential role providing the metals used at the heart of the modern economy – is equal to c.3.5% of global energy use. The metals produced by mining are critical for enabling the global transition to low-carbon infrastructure. But without action, energy use in mining itself is set to trend higher in the coming years as demand increases for metals like copper, nickel and zinc. The report suggests there are technologies available today that could make a significant difference to this trend. For example, it highlights that comminution – i.e. crushing and grinding processes – is the single biggest user of energy at mine sites, typically accounting for 25% of mining’s final energy consumption. This is equivalent to the power used by 221 million typical UK homes, or c.1% of total consumption globally. Comminution is therefore a natural target for the most impactful energy savings opportunities. Small improvements in comminution technologies can lead to relatively large savings in both energy consumption and greenhouse gas emissions. For example, a 5% incremental improvement in energy efficiency across comminution could result in greenhouse gas emissions reductions of more than 30m tonnes of CO2-e. The replacement of traditional comminution equipment with new grinding technology also reduces indirect emissions in the mining value chain, for example by removing the need for the manufacture of emission-intensive steel grinding balls. Of the remaining energy consumption by the mining industry, diesel in varied forms of mobile equipment accounts for 46%, electricity in mining (ventilation) 15% and “other electricity” 14%. Other significant opportunities identified by the report for reducing mining’s energy consumption include optimisation, big data and artificial intelligence. In addition, if zero emissions energy sources are deployed for mining equipment – e.g., renewable energy, energy storage and alternative fuels – then the industry may well be able to achieve zero emissions, leaving a relatively small role for offsets and carbon credits to play. The report comes as the mining industry is under ever-greater pressure to produce essential minerals that support some of the biggest global structural trends, from population growth to urbanisation and decarbonisation. Copper, nickel, steel and lithium are core components of electricity transmission and storage, electric vehicles and renewable energy infrastructure. The move to a decarbonised economy will result in increased primary consumption of these mined commodities, even after factoring for recycling, so it is important that mining itself becomes more sustainable. Download the independent Mining Energy Consumption 2021 report here: www.energysavingsinmining.com Commenting, Weir Group Chief Executive Jon Stanton said: “The mining industry is central to economic development globally, with critical minerals enabling the low-carbon transition required in the rest of the economy. But the environment in which it will operate in future will be very different from the past, requiring comprehensive change and investment. In short: mining needs to become more sustainable and efficient if it is to provide essential resources the world needs for decarbonisation while reducing its own environmental impact.This report is an important contribution to that debate which we hope will spark thoughtful conversations around the world on the way forward.” Alison Keogh, Chief Executive of the Coalition for Energy Efficient Comminution, said: “This report highlights both a challenge and an opportunity to revitalize cross-industry discussion and actions on decarbonisation and ESG solutions. We invite industry leaders to actively contribute and collaborate through mining-vendor-research partnerships and share knowledge. Together, we can accelerate improved energy, emissions and water footprint across industry faster.” Ricardo Garib, Weir Minerals Divisional President commented: “Weir Minerals is focused on making mining more efficient and sustainable by leading technology change in the industry. Our Enduron HPGRs are increasingly replacing conventional milling systems in comminution (crushing, screening and grinding) circuits because of their substantially lower energy consumption, finer rock reduction requiring less water downstream and potential for significant total cost of ownership reductions.” Stuart Hayton, Managing Director of Weir Minerals Netherlands, where the Enduron® HPGRs are designed and manufactured, added: “Not only do Enduron HPGRs require as much as 40% less energy than traditional alternatives, their wearable components last much longer and the maintenance time required to replace worn out parts is significantly lower. The estimated carbon saving of each Enduron HPGR in operation is equivalent to taking more than 3,600 petrol fuelled cars off the roads each year.” Notes: The report quantifies energy use in five commodities: copper, gold, iron ore, nickel and lithium. Bringing together mine energy use data from more than 40 published studies (each of which references dozens more studies) from 2007 to 2020 into a single narrative, the report aims to build a more comprehensive understanding of energy use in the mining industry. Using the current production rates of the commodities in question, and the energy intensities for each of the commodities, a total of 1,68 EJ/a (1,680,000,000,000,000,000 joules per year) has been calculated. This is approximately 0.5% of total final energy consumption globally. Published information indicates that the entire mining industry consumes approximately 12 EJ per year – or 3.5% of total final energy consumption globally. Assuming that present trends continue, there will be 250m electric vehicles on the road by 2030. To meet this demand, production of cobalt, lithium, graphite and nickel will need to be scaled up significantly. Current projections show that the current rate of decarbonisation globally is far below what is required to meet the goals of the Paris Agreement. A sustained decarbonisation rate of up to 7% per year, year on year should be sufficient to achieve the goal of a temperature increase of well below 2°C by 2100. For the mining industry, there are multiple ways to achieve decarbonisation including energy efficiency and fuel/energy switching. Many of these opportunities are starting to be explored by both the mining companies and the mining services providers, who see decarbonisation and energy reduction as a key way to reduce exposure to the risks of climate change.
Philippine Resources - May 24, 2021
Weir Minerals announces major order of Enduron® HPGR with IAMGOLD
Weir Minerals is proud to announce another major order of Enduron® HPGR in Gold application with our valued Customer IAMGOLD. An Enduron® HPGR with rolls measuring 2.4 m x 2.4 m (length : diameter) will be installed at IAMGOLD's Côté Gold Project. This will be the largest HPGR in Canada and the largest in the world in a gold hard rock application. Weir Minerals’ Enduron® HPGR unique design is perfectly suited to IAMGOLD’s Côté Gold operations to achieve industry-leading particle size reduction and with the lowest total operating costs. Enduron® HPGR is the market proven HPGR with the mechanical design to support efficient and durable skewing thanks to its unique bearing arrangement and control philosophy Enduron® HPGR has a unique roll diameter-width ratio which maximizes throughput at the desired product grind Enduron® HPGR self-adjusting cheek plates provide equal sealing distance as flanges at minimum costs Enduron® HPGR is the market leader in large format, high tonnage hard rock HPGR Tim Lundquist, HPGR Regional Sales Manager North America: “Our Enduron® HPGR design will create energy savings of up to 40% compared to an equivalent SABC comminution circuit, while also significantly reducing the need for downstream grinding media. This power and grinding media savings will optimize total ownership cost and also account for a significant reduction in carbon emissions”. Weir Minerals prides itself in being close to its customers at all times. Our Weir Minerals Canada team and purpose-built facilities will be providing full HPGR service for the Côté Gold operations. For more information about Enduron® HPGR please visit enduronhpgr.weir
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Philippine Resources - August 03, 2021
OceanaGold Provides Didipio Update and Q2 2021 Financial Results
OceanaGold Corporation reported its financial and operational results for the quarter ended June 30, 2021. Michael Holmes, President and CEO of OceanaGold said, “I am very pleased with the operational and financial performance of the business in the second quarter 2021. Haile delivered a record quarter of gold production and is well on-track to deliver on the full year production guidance. Waihi plant upgrades were completed, and we 2 commenced continuous milling late in the second quarter which is a tremendous outcome as we continue to ramp-up underground operations.” “Based on year-to-date performance we have refined our expectations for the full year. We currently expect consolidated production of 350,000 to 370,000 gold ounces at AISC of $1,200 to $1,250 per gold ounce sold at cash costs of $825 to $875 per ounce sold. Strong first half performance at Haile has put us firmly on track to deliver ahead of 160,000 gold ounces for the full year at moderately higher AISC, largely driven by an increased proportion of mining costs capitalised as pre-strip plus higher than expected mining costs incurred. On the other hand, a softer first half at Macraes is driving production to the lower end of guidance of 155,000 to 165,000 gold ounces for the full year at consequently higher AISC. Waihi is firmly on-track and production guidance remains unchanged but at improved costs. We expect to provide updated consolidated guidance in-line with the staged restart of Didipio over the coming weeks.” “Renewal of the FTAA at Didipio was one of our key priorities this year, and I’m extremely proud to say we delivered. The staged restart of the asset is underway with the current focus on the rehire and training of our skilled Philippine workforce. We expect to restart processing well prior to year-end, initially sourcing mill feed from existing stockpiles at site. Our expectation is to also transport and sell approximately 18,500 gold ounces and 3,500 tonnes of copper in concentrate on site by early fourth quarter. The rehire and retraining of the workforce, as well as the ongoing risks associated with the COVID-19 pandemic, could impact the timeline associated with returning to full underground production of 1.6Mtpa, which could take up to 12 months. Operations In the first half of the year, the Company produced 177,039 ounces of gold, a 27% increase over the same period in 2020 due to record production at Haile in the second quarter, resumption of campaign processing at Waihi, and limited impacts from COVID-19. Second quarter gold production of 93,848 ounces of gold reflects record production at Haile of 57,240 ounces. Consolidated AISC of $1,227 per ounce sold YTD and $1,226 per ounce sold in the second quarter were relatively flat over the prior year and previous quarter. Cash costs for the first half of the year of $734 per gold ounce and $764 per ounce in the second quarter, decreased 22% and 11%, respectively. The improvement in cash costs primarily reflects lower operating costs at Haile from productivity improvements made year-over-year Haile, USA Haile delivered a record second quarter of 57,240 gold ounces resulting in 101,581 gold ounces produced in the first half of the year. AISC and cash costs improved significantly, benefitting from higher gold sales and lower overall cash costs from productivity improvements. AISC and cash costs for the second quarter were $922 and $615 per ounce, a decrease of 7% and 22%, respectively, quarter-on-quarter. YTD AISC and cash costs were $953 per ounce and $684 per ounce, respectively, down approximately 36% over the prior year period. Unit mining and milling cost decreased quarter-on-quarter, and increased 9% and 36%, respectively, YTD over the prior year period. Second quarter decreases reflect lower maintenance activities on the mining fleet and higher mill feed following milling disruptions from the first quarter; YTD increases are attributable to higher maintenance costs and an unplanned mill disruption from blocked crusher chutes in the first quarter that have since been resolved. The decrease in site G&A quarter-on-quarter reflects the increase mill feed and lower costs during the period. Confirmed COVID-19 cases at site increased from 111 at the end of the first quarter to 120 by the end of the second quarter, a decrease in positive cases from 48 in the first quarter to nine in the second quarter. Looking ahead, the Company expects to transition to ore mining of lower grades at Ledbetter Phase 1 and commence stripping of Ledbetter Phase 2, resulting in materially lower production and higher AISC in the second half of this year. The Company has refined its full year production guidance for Haile to 160,000 to 170,000 gold ounces at site AISC of $1,100 to $1,150 per ounce sold, including cash costs of $850 to $900 per ounce sold. The higher AISC and cash costs reflect higher mining costs incurred plus incremental sustaining capital expenditures related to open pit pre-stripping. Waihi, New Zealand Waihi produced 3,939 gold ounces in the second quarter and 8,276 gold ounces YTD. Second quarter activities at Waihi primarily focussed on the development of Martha Underground and replacement of the semi-autogenous grinding (“SAG”) mill. Approximately 2,665 metres of underground development were completed during the second quarter and 5,210 metres YTD. Sustained milling recommenced in late June following the successful replacement of Waihi’s SAG mill. AISC and cash costs for the second quarter were $1,223 and $1,215 per ounce sold, respectively, and increased quarter-on-quarter with higher operating costs associated with limited early production, partly offset by moderately higher gold sales. YTD AISC and cash costs were $1,099 per ounce and $976 per ounce, respectively, increases over the prior year period with the ramp-up of production at Martha Underground as expected. Unit mining costs were relatively unchanged quarter-on-quarter with mining of narrow vein ore at Correnso and early production from Martha Underground in both quarters. YTD mining costs reflect early production from Martha Underground relative to the prior year. Processing cost and site G&A increases in the second quarter reflect the planned shutdown for replacement of the SAG mill and resultant lower mill feed. Lower site G&A YTD over the prior year reflects normal operations relative to 2020 which included impacts from COVID-19-related shutdowns. Full year 2021 production guidance at Waihi remains unchanged while cost guidance has improved. The Company expects to produce 35,000 to 45,000 ounces at lower gold cash cost of $900 to $950 per ounce and site AISC of $1,300 to $1,350 per ounce sold. The Company anticipates ramp-up of production over the course of the second half with the highest quarter of production for the year expected in the fourth quarter. Macraes, New Zealand Macraes produced 32,669 gold ounces in the second quarter and 67,182 gold ounces in the first half of 2021. Lower than expected production in the second quarter reflects geotechnical impacts at the Coronation North open pit that slowed mining rates reducing access to higher grade ore zones, as well as a delayed re-start from the planned shut during the quarter to address out-of-scope maintenance requirements Second quarter AISC and cash costs were $1,524 and $897 per ounces sold, respectively. YTD AISC and cash costs were $1,428 and $857 per ounce sold, respectively. Cash costs increased approximately 10% quarter-onquarter and YTD over the prior year period, reflecting the lower ounces, a net drawdown in inventory and additional contractor costs to fill workforce vacancies. Similar increases in AISC also reflect the higher sustaining capital spend related to increased pre-stripping at Deepdell North and waste movements in the quarter and first half. Unit mining costs were 6% and 28% higher quarter-on-quarter and YTD over the prior year period, respectively, as a result of reduced trucking productivity from inclement weather which saturated haul roads, flooded active open pit mining areas, and rendered the underground inaccessible for a two-week period in the first quarter. Mining efforts were subsequently re-directed to increased waste mining and pre-stripping at Deepdell North open pit through the first half. Processing unit costs also increased over comparable periods, reflecting the one-off mill motor outage in the first quarter and extended mill shutdown during the second quarter. Due to the lower-than-expected production in the first half, the Company expects Macraes full year production to be in the lower end of the guidance range of 155,000 to 165,000 gold ounces at cash costs of $800 to $850 per ounce and increased site AISC to $1,200 to $1,250 per ounce sold over the full year, primarily driven by increased sustaining capital spend related to pre-stripping at Deepdell North and additional underground development. Production is still expected to increase in the third quarter and be higher overall in the fourth quarter of 2021. Didipio, Philippines There was no production from Didipio in the second quarter and first half due to the suspension of operations. The Company expensed $5.5 million in the second quarter and $10.0 million YTD of holding costs as part of consolidated Corporate General and Administration, which relates to maintaining Didipio in a state of operational standby. Subsequent to second quarter end, the Government of the Philippines renewed the Didipio FTAA for a further 25 years. The Company’s primary focus is the safe and responsible start-up of operations, which includes recruitment and training of the workforce and the transport of approximately 15,000 tonnes of copper-gold concentrate produced prior to the shutdown of operations. The Company expects to progressively ramp-up to full underground mining rates of 1.6 Mtpa within the next twelve months, depending on workforce rehiring and recruitment efforts. Ore from the underground will incrementally and steadily offset mill feed from stockpiled ore of which there is currently 19 million tonnes. Since March 2020, 72 positive COVID-19 cases have been managed at Didipio, 63 of which occurred in the second quarter of 2021. The Company experienced a significant increase in COVID-19-positive cases early in the second quarter, consistent with the spread of COVID-19 in the local and surrounding communities. The site continues to follow strict health and safety protocols to prevent the ongoing transmission of the virus at site. Financial In the first half of the year, the Company generated $331.5 million in revenue, a 42% increase from the prior year period due to record production at Haile, improved average gold price and early production at Waihi with the development of Martha Underground. Quarter-on-quarter revenue increased 23% with record production from Haile, partly offset by lower sales from Macraes where production was impacted by geotechnical issues that rendered higher grade ore zones of the open pit inaccessible. First half adjusted EBITDA (excluding Didipio carrying costs) of $161.9 million nearly tripled year-on-year, reflecting improved revenues on higher gold prices and record production at Haile at improved cash costs, as compared to the first half of 2020 which included impacts related to COVID-19 shutdowns. Quarter-on-quarter adjusted EBITDA of $95.4 million increased 43%, benefitting from record production at Haile at improved operating costs, partly offset by lower sales from Macraes. Adjusted net profit was $36.9 million or $0.05 per share on a fully diluted basis in the second quarter and $58.7 million or $0.08 per share on a fully diluted basis YTD. The quarter-on-quarter and year-over-year increases were mainly a function of the higher revenue from increased sales volumes. The increases were partly offset by income tax expense of $15.8 million in the second quarter and $21.5 million YTD due to the operational profits in the USA and New Zealand. Additionally, there were no potential tax benefits recognised associated with the costs incurred to maintain Didipio in a state of operational readiness. Operating cash flows YTD were $83.4 million, a decrease year-over-year given the $79.0 million received from the gold presale in the first quarter of 2020. Excluding working capital adjustments, fully-diluted cash flow per share was $0.22 YTD and $0.13 for the second quarter. First half investing cash flows of $152.8 million were significantly higher than the prior year period, primarily due to higher growth capital expenditures at Haile related to the expansion of waste storage facilities, increased prestripping at Macraes and the ongoing development of Martha Underground at Waihi. As at June 30, 2021, the Company’s cash balance stood at $92.3 million, and net debt increased quarter-onquarter to $224.8 million, mainly reflecting the lower cash balance. The Company’s total debt facilities stood at $250 million of which $50 million remains undrawn as at 30 June 2021.
Philippine Resources - August 02, 2021
Lawmaker Renews Call for Mining Tax Regime, Trust Fund During National Confab of Mining Stakeholders
Albay Rep. Joey Sarte Salceda has called for the passage of the proposed fiscal regime for the mining industry, saying the industry is a potential job creator in the post-COVID future. Salceda, chairman of the House committee on ways and means, emphasized the natural wealth potential of the Philippines, but observed "key deficiencies in the country’s extractive industry governance framework," some of which can be resolved by a “coherent tax regime.” “The country is the fifth most mineral-rich country in the world for gold, nickel, copper, and chromite. It is also home to the largest copper-gold deposit in the world. Estimates suggest that up to 840 billion dollars of untapped mineral wealth is in Philippine soil,” Salceda said in his keynote speech during the Extractive Industry Transparency Initiative (PH-EITI) National Conference on Thursday. “This is not to mention the 17.1 billion barrels of oil deposits that China’s Ministry of Geology and Mineral Resources estimates to be in the Spratlys, or the 190 trillion cubic feet of natural gas that the US Energy Information Administration believes to be in the area. “These resources, if extracted and managed properly, could make the Philippines one of the richest countries in the world,” Salceda added. Salceda noted that although the issuance of Executive Order 130, amending Section 4 of Executive Order No. 79 s. 2012, lifted the moratorium imposed by the latter on new mining agreements, the Executive Order still has areas for improvement. “First, neither Congress nor the Department of Finance, the country’s fiscal policymakers and fiscal administrators respectively, are given a specific role in this process by the new EO,” Salceda said. Salceda also observed that the EO delegates some powers that are not supported by law, including the power of the Department of Environment and Natural Resources (DENR) to negotiate tax agreements with miners. Salceda also said it is the DOF that has the experience in financial management and should therefore negotiate revenue sharing agreements on the government’s behalf. Salceda, however, emphasized the high potential of the mining sector post-pandemic. “As the world shifts towards electric-powered transport, and as the digital economy continues its ascent, the global economy will require more minerals, especially nickel and copper, which we abound in. Nickel prices are once again in 5-year high levels. So is copper and cobalt, elements needed for e-vehicle batteries,” Salceda said. “Regardless of the grade of minerals we produce, demand is high across the board. It can only mean well for our mining industry’s bottom lines in the medium-term,” Salceda added. Salceda stressed the revenue-generating potential of the industry if a tax regime is enacted. “The tax revenues are also crucial for economic recovery. The proposed regime will generate P7.2 billion in incremental revenues on the first year and P37.9 billion over the next 5 years. These are closed-group estimates. “They are probably conservative, as more mining agreements are made and as mineral prices continue to boom. So, these revenues will play an important role in helping stabilize our fiscal situation,” Salceda said. The industry could create well-paying jobs post-pandemic but stressed the need for a mining trust fund supported by tax revenues from mining as a “rainy day fund” for when mineral prices are low. “Of course, that’s [high prices] not forever. Manufacturers will find ways to reduce metallic content when the metals get too expensive. When that happens, prices will inevitably fall. We must be ready. The tax regime is not everything, but it’s a necessary step we cannot skip,” Salceda said.
Philippine Resources - August 02, 2021
Philex Delivers PHP1.149B Core Net Income in 1H2021, An Increase of 186% Compared with 1H2020
Photo Credit: Redjie Melvic Cawis Philex Mining Corporation announced that the Company achieved another new high in its revenues and core net income for 2Q2021. Philex recorded a Core Net Income of Php610 million for the 2nd quarter. In addition to the Php540 million core net income it already recorded in 1Q2021, Philex registered a new high core net income for the first half of the year at Php1.149 billion. Satisfactory execution of the mining plan resulted in sustained level of metal output, and optimum operating cost and expenses delivered the higher core net income for the quarter and year-todate ended June 30, 2021. The Company reported a Net Income of Php600 million for 2Q2021 versus the reported Net Income of Php322 million for the same period in 2020, an 86% increase. Production and Revenues The Company milled slightly lower tonnage than the first quarter of 2021 resulting in slightly lower copper output for 2Q2021. Despite the slightly lower copper output, the Company generated higher revenues for 2Q2021 at Php2.377 billion, higher by 21% over the same period in 2020. This brings 1H2021 revenues to Php4.747 billion, ahead by 29% over the same period in 2020, with revenues only at Php3.680 billion. The higher revenues are due mainly to the sustained higher realized metal prices for both Gold and Copper at $1,807 per ounce and $4.21 per pound, respectively. The satisfactory execution of the mining plan and mill operations resulted in the production of 13,612 ounces of Gold and 6.435 million pounds of Copper for 2Q2021, bringing the 1H2021 total metal output at 27,025 ounces of Gold and 13.205 million pounds of Copper. Operating Costs and Expenses Core and Net Income Operating costs and expenses for 2Q2021 at Php1.593 billion are higher than those of 2Q2020 at Php1.552 billion due to slightly higher production expenses and higher excise taxes and royalties attributable to higher revenues. The slight increase was tempered by lower non-cash production costs in 2Q2021 amounting to Php271 million compared with non-cash production costs in 2Q2020 amounting to Php330 million. This brings the 1H2021 operating costs and expenses to P3.240 billion, higher by Php136 million compared with 1H2020. The increase is attributable to increasing production cost brought about by the effects of the pandemic to the supply chain, including logistics and Covid-19 response undertaken by the Company. Reported Net Income for 2Q2021 increased by 86% to Php600 million from Php322 million in 2Q2020 This brings the Company’s 1H2021 reported Net Income to Php1.159 billion from Php425 million of 1H2020. Core Net Income for 2Q2021 reached Php610 million to close the 1H2021 Core Net Income at Php1.149 billion, higher by 186% versus the Core Net Income of Php402 million in 1H2020. The Company generated EBITDA of Php1.016 billion for the 2Q2021 versus Php708 million in 2Q2020, a 44% increase. This brings the 1H2021 EBITDA to Php2.027 billion versus Php1.127 billion in 1H2020, an increase of 80% COVID 2019 Despite our strict implementation of the IATF-DOH mandated health protocols, the Company was not spared by the spread of the Covid19 virus. Several employees and their dependents were infected by the virus but the infection was immediately contained, preventing widespread transmission, and ensuring the continued operation of both the mine and mill plant. The Company adopted and implemented regular surveillance and contact tracing activities to further strengthen its defense against any transmission to its employees and their dependents. Silangan Project The Board of Directors of Philex has approved the In-Phase development of Silangan and the Company will be appointing a financial advisor to assist in the fund raising that will commence as soon as practicable. With the In-Phase development of Silangan, the capital expenditure requirement will be made in stages, and can be funded from a variety of potential resources including internally-generated cash and potentially through equity and debt from investors and creditors. The Company is confident that Silangan development will start by Q22022 with the target of commencing commercial operations in January 2025. “We will be working with our financial advisor to immediately implement the fund raising activity for the InPhase development of Silangan. We believe that the recent government pronouncements related to the mining industry will increase the level of interest and confidence of investors and lenders to mining companies. The launch of Silangan will be very timely.”, emphasized Eulalio B Austin, Jr, Philex President and CEO. “The global outlook for metal prices continue to be positive and Philex is poised to benefit as we emphasize on excellent execution of plans in light of the current volatile environment brought about by this pandemic. In the next couple of months, we set to launch our Silangan Project under an In-Phase Development approach. Silangan will be an exciting project for Philex.”, concluded Manuel V. Pangilinan, Philex Chairman. Article Courtesy of The Philippine Stock Exchange