Philex income down in H1

MANILA, Philippines - A slump in world metal prices dragged down the first semester net income of the Pangilinan-led Philex Mining Corp. by six percent.

In a filing with the local bourse yesterday, Philex reported that its net earnings fell to P565 million from P600 million as revenues declined to P4.89 billion from P5.78 billion last year.

The company’s Padcal copper-gold mine in Benguet operated for 178 days in the first half, producing 4.47 million tons of ore. From this, 53, 689 ounces of gold were produced, higher than the 42, 286 ounces produced last year.

Copper output, meanwhile, reached 16.9 million pounds, down from the previous year’s 18.2 million pounds.

Revenue from the sale of copper decreased to P1.87 billion from P2.45 billion as  the average realized prices for gold were lower by 11 percent at $1, 190 per ounce.

Copper prices declined by 16 percent to $2.61 per pound.

These price levels were the lowest recorded in the last five years, Philex said.

Revenues from petroleum, and other sources, which were affected by lower output and volatility in world crude prices, slid to P83.5 million from P197.8 million last year.

“As we navigate through the turbulent global developments, we remain focused on maximizing our operating mine and at the same time setting our sights on the development of the Silangan project. Right now, we are benefitting from our cost-containment measures and are confident that the results of these initiatives will be more pronounced in the longer term”, Philex president and CEO Eulalio B. Austin Jr. said.

Yulo E. Perez, president of Silangan Mindanao and Mining Co. Inc. said the Silangan project is making progress after securing the necessary permits and documents.