Philex Mining Corporation, added Php136 million core net income and Php 564 million EBITDA in 4Q2024 to the Php610 million core net income and Php1.418 billion EBITDA of the first nine months ended September 30, 2024. Full year 2024 reached core income at Php746 million and EBITDA at Php1.981 billion. Gold and copper prices were at relative higher levels throughout the year, compared with 2023, while foreign exchange rate continued to improve through 4Q2024.
Operating revenues increased to Php8.183 billion in 2024 from Php7.726 billion in 2023. Operating revenues in 4Q2024 at Php2.084 billion were also higher compared with Php1.768 billion in 4Q2023. However, operating costs and expenses inched up by 9% to Php7.299 billion for the year 2024 as a result of elevated prices of materials and supplies.
Realized Gold prices reached $2,419 per ounce in the fourth quarter, while Copper peaked at $4.57 per pound in the third quarter before settling to an average $4.32 per pound for the remainder of the year.
Tonnage milled for 4Q2024 was at 1.767 million tonnes, higher than the 1.628 million tonnes in 4Q2023. Total tonnage milled in 2024 reached 6.809 million tonnes, slightly lower than the 6.853 million tonnes for 2023. Gold ore grades declined by 16% towards the end of the year and Copper ore grades reduced by 7% as we continue to mine the peripherals of the ore body. Gold output in 4Q2024 reached 7,136 ounces, adding to the 23,566 ounces for the three quarters ended September 2024, ending the year with 30,702 ounces-lower by 19% than the 37,784 ounces gold output for 2023. Copper output for 4Q2024 was 5.027 million pounds;the full year Copper output was at 19.780 million pounds, lower than the 21.298 million pounds output for 2023.
The performance in 2024 allowed the Board to declare a cash dividend of 2 centavos (Php0.02) per common share aggregating to Php116 million, to shareholders on record as of March 12, 2025, which will be paid on March 24, 2025.
THE SILANGAN PROJECT AND OUTLOOK
The development of the Silangan Project in Surigao del Norte registered a major milestone with the underground main access decline reaching the Santa Barbara 1 ore body ( formerly Boyongan ore body), and marking 7.5 million uninterrupted manhours without LTA ( Loss Time Accident) as of January 18, 2025. Major components of long lead equipment packages for the Process Plant such as SAG Mill, Atmospheric Leach Feed Thickeners and HAB Feeder and Primary Sizers were delivered on site ready for installation. All the equipment packages had been awarded and are in different stages of manufacturing by various mining industry suppliers located in several countries. The construction of the Tailings Storage Facility (TSF) is in full swing passing the 50% completion mark. Underground production tunnels and the TSF are on track to be completed by 3Q2025, while the Process Plant will be ready for commissioning in 4Q2025.
“In 2025, we will navigate the challenges of operating an old yet viable mine like Padcal and commissioning a new mine like Silangan,” according to Eulalio B. Austin Jr., Philex president and CEO. “Padcal still has the potential, and we are looking at pulling out all the stops, so to speak, to ensure its survival in its projected 2028 mine life and even beyond.”
“For Silangan, we will protect the showstoppers to avoid any further delay in the commissioning of the project, and we are thankful to our shareholders, lenders, suppliers, consultants, and the national and local government units for their confidence and continued support to make Silangan Project operational by 1Q2026, marking a new era for Philex and the Philippine mining industry” Austin added. “It is imperative that Silangan be ushered into production before the expected mine life of Padcal comes to a close.”
