PHILEX MINING Corp. reported its profit fell by 15% in the first nine months of the year, as sales were affected by “production-related issues” at its Padcal mine.
In a statement on Wednesday, the listed miner said its net income in the January to September period slipped to P1.132 billion from the P1.333 billion booked during the comparable period last year.
Core net income stood at P1.158 billion for the period ending September 30, 13% lower than the P1.33 billion in the same period last year.
The gold-copper miner’s operating revenues during the nine-month period amounted to P7.180 billion, a 6.81% decline from the P7.705 billion a year ago.
“The Padcal Mine experienced production-related issues in the nine months of the year, which have slowly been addressed and showed in a higher tonnage during the middle part of September that extended into October,” Philex Mining said.
Total ore milled in the first nine months stood at 6.26 million tons, 13% down from the 7.21 million a year ago. Philex Mining attributed the decreased ore production to “low mine delivery due to equipment availability issues, limited flexibility related to ore handling, and persistent bouldery ore.”
Gold production slumped 21% to 62,689 ounces during the nine-month period. The price of gold averaged $1,272 per ounce during the January to September period versus $1,273 per ounce a year ago.
“(The) impact of lower gold output resulted in lower revenue of P4.036 billion (9M2016: P4.797 billion) which comprised 56% of total revenues,” Philex Mining said.
On the other hand, copper sales during the period, which account for 43% of revenues — grew 9% to P3.09 billion from P2.84 billion a year ago. Improved copper prices helped offset a 19% drop in output to 21.92 million pounds. Average copper price stood at $2.80 per pound during the nine-month period from a year ago’s $2.19 per pound.
The remaining balance of its nine-month revenues came from silver sales which stood at P55.9 million, 15.81% lower than the P66.4 million registered last year.
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
