PHILEX MINING Corp. on Thursday said its net income fell by nearly a third in the first quarter as higher metal prices failed to offset lower metal production and a rise in excise taxes.
In a statement, the listed gold-copper miner said its net income declined by 30% to P303 million, while its core net income dropped 25% to P346 million during the January to March period.
“The results were attributed to lower metal production, caused by low ore grades, higher non-cash charges, and increased taxes arising from the doubling of excise tax rates under the Tax Reform Acceleration and Inclusion (TRAIN) Law,” Philex Mining said.
Revenues slipped 7% to P2.373 billion in the first quarter, from P2.542 billion during the same period a year ago.
Philex Mining said Padcal milled 2.2 million tons of ore during the period, up 10% from the previous year’s 2 million ton.
While production-related issues have been resolved, the miner said “ore grades, low metal recoveries and equipment repairs resulted in lower volumes of metal.”
Gold production decreased by 20% to 17,947 ounces, while revenues from gold dipped 13% to P1.237 billion as higher average gold prices partially offset the lower output. Gold prices went up to $1,338 per ounce during the first quarter, versus $1,264 per ounce a year ago.
Copper production was 9% lower at 7.1 million pounds, but revenues jumped 2% to P1.117 billion. Realized copper prices were higher at $3.10 per pound during the first quarter, versus $2.77 per pound a year ago.
Cash costs and expenses dipped 2% to P1.288 billion, due to lower production costs.
“The results of the first three months of the year reveals the challenges for Padcal as it mines the fringes of its current ore body. This makes achieving an extension to mine life imperative to sustain operations and continue our commitment to our stakeholders,” Eulalio B. Austin, Jr., Philex president and CEO, was quoted as saying in the statement.
The company said it is completing studies on how to extend Padcal’s life of mine beyond 2022. The studies will focus on “the most effective and efficient means to expand the capacities of its existing tailings storage facilities (TSFs) to accommodate additional tailings.”
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.
