Philex earnings drop on lower metal output

MANILA, Philippines — Pangilinan-led Philex Mining Corp. halved its net earnings in the first half of the year on lower metal production and copper prices.

In a disclosure to the Philippine Stock Exchange, Philex said its January to June net income reached P704.14 million, a 49.7 percent decrease from P1.75 billion in the same period last year.

Core net income also fell by 47.4 percent to P701.5 million.  Revenues slipped by 17.1 percent to P4.16 billion.

Philex continued to see lower metal output with total tonnage milled reaching 3.531 million tons, four percent lower than the 3.68 million tons in the same period last year.

Per metal type, total gold output fell 19 percent to 20,361 ounces while copper output declined by 12 percent to 11.173 million pounds year-on-year.

The company said it “continues to address the unscheduled breakdowns of the aging equipment at the mill plant.”

Philex also saw softer copper prices during the quarter, but this was mitigated by the slight improvement in gold prices.

“Realized gold price at $1,937 per ounce in the second quarter was higher by six percent when compared to 2Q2022, while realized copper price at $3.82 per pound was seven percent lower when compared to 2Q2022,” it said.

For the first six months, prices for gold and copper averaged at $1,924 per ounce and $3.91 per pound, respectively.

The company’s total operating costs and expenses were nearly flat at P3.34 billion this year.

“The continued implementation of efficiency measures in operations offset the increases in the purchase costs of the materials and supplies as well as equipment parts and repairs. Higher power costs, however, continued to increase operating costs and expenses despite lower production level,” Philex said.

Despite the current challenges in Padcal mine operations, the company said it is still on track with development works on the Silangan project in Surigao del Norte.

It has completed the east decline portal while tunneling works has commenced with the arrival of tunnelling equipment, such as low profile loaders, jumbo drill and accessories.

“The ongoing tunnelling works is on its second month and is necessary for the development of the mine production levels as well as ventilation openings,” the mining firm said.

Philex  is also undertaking the preparatory works, for the tailings storage facility.

Meanwhile, Philex said it is in the final stage of negotiation and documentation of the syndicated debt facility to complete the funding for the project.