Philex Mining posts P2.74-billion income in 2009

MANILA, Philippines - Philex Mining Corp., the country’s largest mining company, posted a net profit of P2.74 billion last year, down two percent from P2.8 billion in 2008.

In a disclosure to the Philippine Stock Exchange, Philex said its 2009 income, which translated to P0.562 per share, was the fourth highest in the company’s 54-year history. It registered a record income of P5 billion or P1.69 per share in 2007.

Philex president Jose Ernesto C. Villaluna Jr. attributed the slight profit decline to lower tonnage which dropped 7.86 percent to 8.2 million tons with grades of 0.567 grams of gold per ton and 0.228 percent copper. This compares to 8.9 million tons with grades of 0.643 grams of gold per ton and 0.257 percent copper in 2008.

Villaluna said the impact of lower production was partly offset by higher metal prices averaging $946 per ounce of gold and $2.24 per pound of copper, compared to $788 and $22.22, respectively, in 2008.

Based on the firm’s previous disclosures, Philex shipped an estimated P9.51 billion worth of metals last year. The value of the firm’s monthly shipments had been steadily rising since the start of 2009.

Philex also recognized a non-recurring negative goodwill of P766 million under accounting rules on the acquisition of the shares of the Silangan project in Surigao del Norte from Anglo American Exploration (Philippines) Inc. in February 2009.

The firm earlier reported that the estimated value of its production for the first two months of the year rose nine percent to P1.58 billion from the P1.45 billion estimate in the same period last year.

The Padcal mine in Benguet delivered 644,939 dry metric tons (DMT) of ore resulting in 4,726 DMT of concentrates containing 49.11 grams per DMT of gold, 24.72 percent copper and 52.75 grams per DMT of silver last month.

Production in February 2010 amounted to 7,471 ounces of gold, 2.58 million pounds of copper and 8,015 ounces of silver with a total estimated value of P772 million. The estimated value of gold output is P384 million, P382 million for copper and P6 million for silver.

The estimated value of the month’s production is based on provisional metal prices of $1,110 per ounce of gold, $3.21 per pound of copper and $16.12 per ounce at an exchange rate of P46.258 to $1.

Meanwhile, Philex Mining’s first shipment for March 2010 is estimated to be worth P816 million, a 50 percent jump from the P545 million worth of concentrates in March 2009. Concentrates shipped amounted to 5,067 DMT, just slightly higher than the 5,009 DMT shipped in the same period last year.