PHILEX Mining Corp. said the first-phase deposit in its Silangan copper-gold mine project in Surigao del Norte could yield close to $7 billion in sales of metallic mineral over 28 years.
“The numbers for the Silangan Project are very compelling, pushing us to pursue the mine development even without a strategic partner or major investors as we originally envisioned,” said Philex Chief Finance Officer Romeo B. Bachoco said in a stock exchange disclosure on Thursday.
The Boyongan deposit is estimated to post gross revenue of P97 million for the first year, P93 million by the fifth year, and P309 million by the 10th year.
The project has an initial capital expenditure of $224 million and will be ready for commercial use in early 2025. It features a starter mine that will initially produce 2,000 metric tons (MT) of ore per day, which will gradually reach 12,000 MT per day by the 12th year.
The Boyongan deposit has an estimated 81 million MT of mineable reserve estimated to yield 992.8 million pounds of copper and 2.81 million ounces of gold. The Bayugo deposit is still being explored.
“The feasibility study assumed a price of $3.20 per pound of copper and $1,342 an ounce for gold — both below current prices of copper of over $4.00 per pound and of gold that is over $1,800 an ounce. Using those assumed prices, the combined revenues from copper and gold totaled to $6.91 billion over the 28 years life of the soon-to-be-developed mine,” the Philex statement read.
“The break-even cost of producing a pound of copper in Silangan is between $2.00 and $2.30 per pound and between $850 and $900 for every ounce of gold,” it added.
On Thursday, Philex shares rose 2.10% or 11 centavos to close at P5.35 each in the stock exchange.
Philex is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and PLDT, Inc.
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