Philex Mining Corp. reported a 56-percent increase in core net income in the third quarter of 2026, while its Silangan mine in Surigao del Norte produced its first copper cathodes and gold-silver doré, marking a milestone in the development of the company's newest mining operation.
In a disclosure to the Philippine Stock Exchange, Philex said core net income reached P537 million in the July-September period, up from P344 million in the same quarter last year.
Reported net income rose 72 percent to P310 million from P180 million, while earnings before interest, taxes, depreciation and amortization (EBITDA) increased 44 percent to P1.13 billion from P784 million.
Operating revenues grew 6 percent to P2.67 billion, supported by higher realized prices for gold and copper.
The average realized gold price increased 24 percent to $4,519 per ounce from $3,642 a year earlier, while the average copper price climbed 49 percent to $6.59 per pound from $4.43.
Operating costs and expenses remained virtually unchanged at P1.96 billion, resulting in a 28-percent increase in operating income to P710 million from P556 million.
However, production volumes declined during the quarter. Philex milled 1.55 million metric tons of ore, down 13 percent from 1.77 million tons a year earlier.
Gold production fell 35 percent to 4,322 ounces, while copper output declined 28 percent to 3.54 million pounds. Compared with the second quarter of 2026, however, gold and copper production increased 8 percent and 5 percent, respectively.
Foreign exchange losses also weighed on earnings, reaching P241 million during the quarter, compared with P184 million in the same period last year. The losses were mainly associated with the restatement of US dollar-denominated loans.
Nine-month earnings improve
For the first nine months of 2026, Philex's core net income increased 56 percent to P749 million from P480 million in the same period last year.
EBITDA rose 37 percent to P1.98 billion, while operating income increased 28 percent to P1 billion from P779 million.
Operating revenues, however, declined 2 percent to P6.17 billion from P6.28 billion.
The increase in realized commodity prices helped offset lower production volumes. Average realized gold prices rose 53 percent to $4,405 per ounce, while copper prices increased 44 percent to $6.15 per pound.
Operating costs and expenses decreased 6 percent to P5.17 billion from P5.5 billion.
Despite the improvement in core earnings, reported net income fell to P110 million from P482 million a year earlier, primarily due to foreign exchange losses of P649 million, compared with P38 million in the first nine months of 2025.
Silangan produces first metal
Philex said its Silangan mine has completed the commissioning phase of its processing plant and produced its first copper cathodes and gold-silver doré.
The company described the facility as the first in the Philippines to use copper leaching technology to process ore into saleable copper metal.
The production of copper cathodes marks the start of a new phase for the project, while the completion of gold-silver doré smelting represents another milestone in its metallurgical operations.
Philex President and Chief Executive Officer Eulalio Austin Jr. said the company had overcome numerous challenges in bringing the project to fruition.
"The realization of the Silangan Mine reflects our commitment to creating a sustainable and lasting legacy for the people of Surigao del Norte and for the country as a whole," Austin said.
Padcal strike settled
Meanwhile, Philex expects operational momentum at its Padcal mine in Benguet to continue through the remainder of 2026, supported by favorable gold and copper prices.
The company said the three-day strike staged by the National Mines and Allied Workers Union (NAMAWU Local 101), representing rank-and-file employees, ended following conciliation and mediation proceedings before the National Conciliation and Mediation Board-Cordillera Administrative Region.
Both parties signed the finalized collective bargaining agreement on Oct. 26.
Philex said Padcal operations were not disrupted during the strike, as employees who did not participate were sufficient to sustain production.
The company expects stronger commodity prices to continue supporting its operating performance through the end of the year.
