Philex returns to profitability, posts P409-M income in 2005

Philex Mining Corp., the third- largest Philippine mining company by market value, said it returned to a profit last year on higher production and metal prices.

Net income reached P409 million, compared with a P15.8-million loss in 2004, Philex said in a statement to the stock exchange. The company said 2005 profit may be as high as P490 million because of new accounting rules.

Earnings will probably be higher this year as it opens a portion of a mine in the northern province of Benguet, the statement said.

Last year’s profit is the highest since Philex, a gold and copper producer, earned a P1.38- billion net income in 1996.

Philex said sales grew 44 percent last year to P4.54 billion.

Philex earlier obtained an $8.5-million loan facility from a syndicate of local banks to finance the underground development of its Padcal mine in Benguet province.

Among these banks are Bank of Commerce, Philippine National Bank and International Exchange Bank.

The projected capital cost for the development of the Padcal mine amounts to P210 million in 2006.

The Padcal mine, the country’s only remaining copper-gold operation, has been in continuous production for the past 46 years. The development of the next mining level would extend the Padcal mine life up to 2011.

Throughout its long operating history, the Padcal mine has generated $2.6 billion in exports and P8.9 billion in tax revenues for the government.

Philex primarily produces copper concentrates containing copper, gold and silver and gold bullion. Its copper concentrates are either exported to Nippon Mining Co. Ltd. and smelted in the Saganoseki Smelter in Kyushu Island, Japan.