Philex profit grows double digits in H1

MANILA, Philippines — Philex Mining Corp. booked a double-digit growth in earnings as its net income went up by 20.7 percent to P1.4 billion in the first half of the year from P1.16 billion in the same period last year.

The company also reported a 16 percent in core net income to P1.33 billion from January to June this year compared to P1.15 billion in the same period last year.

For the second quarter alone, its earning grew by 18 percent to P709 million from P600 million, while core net income inched up by 7.7 percent to P657 million from P610 million.

The company attributed the income growth to its continued optimization of operating costs and expenses.

Despite lower production, first semester revenues rose by 6.8 percent to P5.43 billion from P5.08 billion due to higher copper and gold ore grades. Meanwhile, second quarter revenues increased by 6.1 percent to P2.71 billion due to higher realized gold prices.

Philex said second quarter operating cost and expenses increased by 4.3 percent to P1.66 billion from P1.593 billion due to slightly higher production expenses particularly on materials and supplies prices brought about by inflation, and higher excise taxes and royalties attributable to higher revenues.

This brought the first semester figure to inch up by 2.4 percent from P3.24 billion to P3.32 billion.

The company said the increasing production cost was brought about by the continuing effects of the COVID-19 pandemic, as well as the Russian invasion of Ukraine, which had a severe impact on the import prices of materials and supplies, especially fuel and power which are critical to business operations.

Philex expects a strong performance this year for the company and the mining industry as the new government under President Marcos has set better prospects for a revived and revitalized mining industry.

The Marcos administration has regarded the mining industry to be one of the major contributors to accelerated economic recovery.

The Department of Finance (DOF) has also stated that the government wants to push the revival of the local mining industry to support the country’s economic rehabilitation.

“With government policies supportive of the mining industry, we are confident that investor interest in the Silangan project will be given a boost,” Philex president and CEO Eulalio Austin Jr. said.

“While we do not expect global uncertainty to wane because of the continuing threat of COVID-19 and the emerging variants, not to mention the Russian invasion of Ukraine that has disrupted the global supply chain and raised concerns on food and energy security, we are optimistic that 2022 will be another good year for Philex and for the mining industry in general,” Austin said.