PHILEX MINING Corp. reported its net income slipped 5% in the first six months due to lower output at its Padcal mine.
In a statement on Thursday, Philex Mining said its net income stood at P719 million during the January to June period, from P757 million a year ago.
The gold and copper miner’s core net income dropped 3% to P748 million, from the P774 million recorded during the same period last year.
Philex Mining said its earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P1.821 billion, 7% higher than the P1.69 billion EBITDA last year.
Consolidated revenues stood at P4.76 billion, 0.67% lower than the P4.788 billion last year, as the lower metal production canceled the impact of improved copper prices and favorable exchange rates.
The company’s Padcal mine in Benguet milled 4.138 million tons of ore during the January to June period, 12% lower than the 4.704 million tons it milled in the same period last year.
“(The lower output was) mainly due to low mine delivery, brought about by equipment availability issues, limited capacities of ore passes at lower mining levels affecting operational flexibility, and bouldery ore in newly commissioned draw points, affecting the ore extraction and transport processes,” Philex Mining said.
Gold sales, which accounted for the bulk of revenues, dropped 8% to P2.710 billion in the first semester, as production slid 13% to 43,251 ounces during the period. Average realized gold prices stood at $1,258 per ounce for the period, compared to $1,263 a year ago.
Meanwhile, copper sales reached P2.007 billion, up 12% from P1.795 billion a year ago, as higher average realized copper prices offset the lower production. Average realized copper prices stood at $2.65 per pound during the first six months of the year, compared to $2.14 per pound last year. Copper production decreased 13% to 14.992 million pounds from last year’s 17.341 million pounds.
Sales of silver climbed 4% to P38.9 million, as average realized prices also rose to $17.6 per ounce from $16.6 per ounce a year ago.
At the same time, Philex Mining said it contributed P884 million in the form of taxes and other fees to the national and local governments, as well as social development and environmental management initiatives in the first half of the year.
“In fact, we have tapped Australian and Canadian counsel to assist us in our efforts to align further with these countries’ mining, safety, and environmental standards. In addition, we are also spearheading efforts for the possibility of Canada’s Towards Sustainable Mining or TSM initiative being adopted by the local industry while continuing to be ISO 14001 (Environment Management System) and OSHAS 18001 (Occupational Health and Safety Standard) certified,” Philex Mining President and CEO Eulalio B. Austin, Jr. was quoted as saying.
Philex Mining is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being PLDT, Inc. and Metro Pacific Investments Corp. Hastings Holdings, Inc. — a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc. — maintains interest in BusinessWorld through the Philippine Star Group, which it controls. — Janina C. Lim
