Philex posts 125% profit hike in 2014

MANILA, Philippines - Listed Philex Mining Corporation registered a 125 percent increase in its net income in 2014 on improved revenues brought about by more operating days and cost streamlining.

In an exchange filing, the Pangilinan-led firm announced a net income of P703 million, up from the P312 million reported in 2013 despite lower ore grade recovery and weakness in metal prices.

The company reported total revenues of P10.898 billion in 2014 against P9.802 billion in 2013.

The company’s Padcal mine operated for a full year in 2014 compared to only 10 months in 2013, resulting to a 23 percent increase in tonnage.

Lower metal grade recovery, however, resulted to only moderate improvements in metal output.

Gold output in 2014 rose five percent to 105,008 ounces, resulting to a six percent increase in revenues at P5.889 billion despite a two percent drop in realized gold price to $1, 270 per ounce from $1,297 per ounce in the previous year.

Copper production rose nine percent in terms of volume to 35.39 million pounds, resulting to increased revenues of P4.615 billion despite a nine percent decrease in realized copper price of $2.98 per pound from $3.27 per pound in 2013.

Revenues from silver, coal, petroleum and others rose 31 percent to P394 million from P300 million in 2013 due mainly from increased production from Galoc oil field’s Phase II project.

The company’s consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) in 2014 amounted to P3.320 billion.

“Against a backdrop of lower metal prices, it was important for the company to reduce the cost base and considerable progress has been made in this area. While the business environment remains challenging, with lower metal prices and restrictive legislative measures being contemplated, especially the proposed new tax laws on the industry, we remain committed to creating value for our shareholders, business partners and employees,” said Philex Mining President and CEO Eulalio Austin Jr.

With the previous year’s performance, the company’s board approved the declaration of cash dividends amounting to two centavos per share payable on March 25, 2015 to shareholders of record as of March 11, 2015. This brings total cash dividends declared in 2014 to five centavos per share.

The company also announced that as of January and February this year, it was able to retire P500 million out of its outstanding debt of P4.308 billion from local banks as of December 2014.

The company also said its Silangan Project in Surigao del Norte continues to make progress as its Definitive Feasibility Study is expected to be finalized within the year.