Philex doubles net income to P2.5B in 1st half

Philex Mining Corp. reported yesterday a net income of P2.5 billion for the first half of the year, more than double its net income of P1.2 billion for the same period in 2006.

Philex also posted a higher second quarter net income of P1.5 billion, a substantial increase from the P596 million recorded in the second quarter of 2006.

Philex officials attributed this to the continued improvement in global metal prices, higher metal production and shipment level and higher tonnage and grade of ore which meant more metals were produced for the period.

“With metal prices going up and our mines increasing its production levels, the company once again posted a strong first half and second quarter financial performance,” Dr. Walter Brown, Philex chairman, said.

Brown projected that if current metals prices — $3.62 per pound for copper and $665 per ounce for gold — and the higher metal production from ore would continue, the company’s whole year bottom line will be even much better.

Philex reported, however, a 41 percent increase in its operating revenue for the six-month period to P6 billion this year from P4.3 billion last year primarily because of higher sales volume combined with higher realized metal prices.

Sold were 23.4 million pounds of copper and 79,456 ounces of gold from 40,162 tons of concentrates shipped this year, compared to 16.5 million pounds of copper and 45,601 ounces of gold from 35,217 tons of concentrates in 2006.

Prices averaged $3.37 per pound for copper and $647 per ounce gold this year, up by eight percent and 12 percent from $3.11 per pound copper and $577 per ounce gold in 2006, respectively.

For the second quarter, Philex’s operating revenue increased to P3.3 billion from P1.8 billion for the same period last year as a result of more metals sold consisting of 11.6 million pounds of copper and 39,971 ounces of gold this quarter from 7.3 million pounds of copper and 20,017 ounces of gold last year.

The 11 percent increase in the price of gold at $655 per ounce from $588 per ounce also contributed to the increase in revenue, although the price of copper decreased to $3.33 per pound this quarter from $3.49 per pound last year, Philex said.