PHILEX Mining Corp. saw its attributable net income drop by 26.9% in 2022 to P1.8 billion from P2.43 billion a year earlier as revenues declined while cost and expenses increased.

In a disclosure on Monday, the listed gold and copper producer also reported a drop in its core income to P1.73 billion last year from P2.53 billion in 2021.

The decrease came after revenues fell 5.5% to P9.26 billion from P9.8 billion previously, while cost and expenses rose 7.9% to P7.12 billion from P6.6 billion, Philex Mining’s financial report showed.

Despite the profit fall, the company maintained a positive outlook for 2023, citing the government’s pronouncement to support the mining industry which it said tempered the impact of the pandemic, the disruption caused by Russia’s war on Ukraine, and the threat of global recession

“We did not expect the global uncertainty to wane, but we were cautiously optimistic that 2022 would be another good year for Philex,” said Philex Mining President and Chief Executive Officer Eulalio B. Austin, Jr.

“There had been operational challenges, coupled with the high levels of global inflation, the volatility of currencies and of metal prices, but with careful planning and adaptation to the changes in business conditions, we were able to achieve our targets,” he added.

Philex Mining Chairman Manuel V. Pangilinan expects the company to grow this year.

“The consensus is that global growth would slow down in 2023,” he said. “This is undoubtedly an impact still of the war in Ukraine and the collateral adverse inflationary effect on food, power, and fuel. Our country will not be spared from this deceleration, but perhaps lesser than other economies. The main hurdles would be inflation and interest rates.”

He cited the recent signing of the term sheet with Macawiwili Gold Mining and Development Co., Inc. (MGMDCI) along with the completed confirmatory drillings that identified additional mineable reserves that extended the company’s Padcal mine life from 2024 to 2027.

He described both as “good starts to what looks like a promising year.”

“Add to this the expected developmental milestones in our ongoing Silangan project and the continued government support and it will be an exciting year for all of us,” he added.

At the start of 2023, Philex Mining signed a term sheet with MGMDCI which sought to “explore commercial, financial, and technical avenues” in preparation for possible shares acquisition of properties adjacent to the existing Padcal mine.

Philex Mining is a holding firm with a business interest in mining, energy, and hydrocarbon. It primarily engages in large-scale exploration, development, and utilization of mineral resources.

On Monday, shares in Philex Mining fell by 4.73% or 14 centavos to close at P2.82 each. — Sheldeen Joy Talavera