Philex earnings down 29% on reduced output
LOWER metal output caused listed Philex Mining Corp.’s net income to plunge to P391 million in the first six months of the year.
The Pangilinan-led mining company told the Philippine Stock Exchange (PSE) on Thursday that the amount was a 29-percent decrease from P551.656 million in January to June 2018.
Net revenues dropped by 27 percent to P3.88 billion from P4.269 billion a year ago.
The firm’s Padcal mine milled 3.805 million tons in the first half, a 13.3-percent slide from 4.388 million tons in the same period last year.
Gold output dropped to 23,675 ounces from 34,583 ounces, while copper output fell to 12.007 million pounds from 14.149 million pounds in the previous year.
Philex attributed the production decrease to the “programmed maintenance and other unscheduled repair works of aging mining equipment, as well as uncontrollable power interruptions that resulted in [fewer] operating days.”
During the six-month period, the average realized price for gold rose slightly to $1,316 per ounce from $1,314 per ounce last year, while that for copper dipped to $2.75 per pound from $3.11 per pound in 2018.
Total production costs slightly decreased to P2.114 billion from P2.118 billion on the back of lower supplies and utilities expenses.
General and administrative expenses slid by 13 percent to P134 million from P154 million.
Depletion, depreciation and amortization went down by 15 percent to P686 million from P808 million.
Philex also told the PSE that the definitive feasibility study for the first phase of its Silangan project in Mindanao has been completed. This project is expected to replace the company’s Padcal copper-gold mine in Benguet province, whose mine life is seen to end by December 2022.
The Silangan mine is a large-scale, high-grade copper-gold development in Surigao del Norte province. It is composed of three ore deposits — Boyongan, Bayugo and Kalayaan — with the latter being held by Philex through a joint venture with Manila Mining Corp.
Based on the study, the project would be developed in phases. The first involved Boyongan, which will be developed within two and a half years. It is expected to begin commercial operations by the second half of 2022.
Boyongan would also be developed in phases, with the first having an initial estimated mine life of 22 years, Philex said, adding that for “this initial stage, Silangan is expected to yield high grade mineable ore grades of 0.63 percent for copper and 1.20 grams per ton for gold.”
The second phase involved Bayugo, which will be put under a preliminary feasibility study for underground sublevel cave mining within this year. This deposit is expected to be mine-ready as early as the fifth year of Boyongan’s commercial operations.
“The remaining substantial mineral resource and inventory, including Kalayaan and the remnants of Boyongan, will be subjected to future studies,” Philex said.
Shares of Philex climbed by 32 centavos or 9.36 percent to end at P3.74 each on Thursday.