Philex output up 7% in October

MANILA, Philippines - Philex Mining Corp., the country’s largest miner, reported that its Padcal copper-gold mine in Benguet produced 6.84 million tons of ore during the first 10 months of the year with an estimated value of P7.9 billion.

In October alone, Philex churned in P890 million worth of gold, silver and copper ore. This represents a seven-percent improvement from the P833 million reported in the same month last year.

Of the P890 million, P467 million is from gold, P415 million from copper, and P8 million from silver.

This is based on higher provisional metal prices of $1,042.25 per ounce of gold, $2.98 per pound of copper and $16.57 per ounce silver at the exchange rate of P47.73 to $1.00.

Philex vice president for finance Renato Migrino said the Padcal mine delivered 742,806 dry metric tons (DMT) of ore.

The October ore output resulted in 5,324 DMT of concentrates containing 54.82 grams per DMT of gold, 24.92 percent copper and 55.67 grams per DMT of silver.

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.

Amid higher gold and copper prices, Philex has revised upward its projected net income for the year to P3 billion or double the profit reported in 2008. The higher projection is based on the currently prevailing level of metal prices at around $950 per ounce gold and $2.50 per pound copper.