Philex output in Padcal down 8.4%

MANILA, Philippines - Philex Mining Corp., the country’s top gold producer, said it generated P3.7 billion worth of ore in the first quarter of the year, down 8.41 percent from the P4.04 billion output of its Padcal mine in the same period in 2011.

Based on its disclosure to the Philippine Stock Exchange, Philex said production increased four percent to 2.36 million dry metric tons of ore from 2.27 million DMT a year earlier.

Philex president Eulalio B. Austin Jr. said that in March 2012, the Padcal mine delivered 795,682 DMT of ore, resulting in 5,725 DMT of concentrates containing 51.6 grams of gold per DMT, 24.6 percent copper and 52.63 grams of silver per DMT. This translated to a production of 9,498 ounces of gold, 3.1 million pounds of copper and 9,688 ounces of silver.

Provisional metal prices for the month was $1,662 per ounce of gold, $3.85 per pound of copper and $32.43 per ounce of silver.

At the exchange rate of P42.92 to $1, output is equivalent to P677 million worth of gold, P513 million in copper and P13 million of silver.

“Philex Mining will continue to lead and will focus on exploring additional revenue streams to maximize the opportunities presented by the world’s growing requirements for gold and copper,” said Philex chairman Manuel V. Pangilinan.

Although declining grades of ore are expected from the Padcal mine, Pangilinan said the extension of the mine life to 2020 increases reserves to 806,000 ounces of gold and 333 million pounds of copper for the next nine years.

“This synchronizes well with our expanding portfolio of assets with the expected commencement of the Silangan project in 2016,” Pangilinan said.