Philex output hits P7.01 billion in 9 months

MANILA, Philippines - Philex Mining Corp., the country’s biggest mining firm, said its Padcal copper-gold mine in Benguet churned out P7.01 billion worth of metals in the first nine months of the year, equivalent to 6.1 million tons of ore.

In September alone, Philex produced P810 million worth of ore, 10 percent higher than the P734-million reported in the same month last year. The production comprised a total of 673,037 dry metric tons (DMT) of ore, an increase of 34 percent from the 503,060 tons of ore the previous year.

Philex chief executive officer Walter Brown said the ore output in September 2009 resulted in 5,202 DMT of concentrates containing 55.35 grams per DMT of gold, 23.67 percent copper and 55.66 grams per DMT of silver. This, in turn, led to a gold production of 290,293 grams (9,333 ounces).

Philex also produced as other products 1.23 million kilograms (2.71 million pounds) of copper, and 289,703 grams (9,314 ounces) of silver.

Of the estimated P810 million worth of production in September, P444 million came from gold, P360 million from copper, and P7 million from silver. These were based on provisional metal prices of $998.50 per ounce of gold, $2.78 per pound of copper and $16.45 per ounce of silver at the exchange rate of P47.59 to $1.

The Padcal mine’s projected operating life has been extended by another three years, from the previously declared 2014 to 2017, based on the proved reserves of the mine as of June 30, 2009.

According to Philex, the Padcal mine has reserves of 74 million tons at assumed metal prices of $800 per ounce of gold and $2 per pound of copper and at copper equivalent cut-off of 0.36 percent.

Philex has upgraded its 2009 projected net income to P3 billion from only P1.5 billion. Last year, the mining firm earned P2.8 billion on the back of stronger gold and copper prices.

The higher projection was based on the currently prevailing level of metal prices at around $950 per ounce of gold and $2.50 per pound of copper.

In the first half this year, however, Philex reported a 49-percent drop in net income to P1.1 billion due to lower volumes and the expiration of the Padcal operations’ income tax holiday.