PHILEX Mining Corp. saw a 32% drop in its net income to P206.498 million in the first three months of 2019, dragged by weaker metal production arising from declining ore grades.
In a disclosure on Wednesday, the listed mining company swung to a core net loss of P111.59 million, from a core net income of P345.976 million during the same period last year.
Net revenues slipped 32% to P1.475 billion during the January to March period from P2.165 billion a year ago.
In a statement, Eulalio B. Austin Jr., president and chief executive officer of Philex Mining Corp., said the company has focused on maximizing the “remaining cash generation capacity” of Padcal which is nearing the end of mine life.
During the first quarter, total tons milled decreased by 16.6% to 1.832 million from 2.197 million the previous year. Philex noted that mineral grades diminish when ore is drawn outside the core of the deposit.
“Moreover, metal output was affected by unscheduled maintenance of some mining equipment and forest fire incidents around the mine camp that caused power outages and the immediate deployment of operations personnel to aid in fire suppression,” the company said.
As a result, gold production declined by 41.5% to 10,493 ounces, while copper production fell by 19% to 5.727 million pounds.
The average realized prices for gold and copper dropped by 2.54% to $1,304 per ounce and by 4.5% to $2.96 per pound, respectively.
“Looking ahead, the Company will continue to implement operational enhancements to improve its financial performance in the subsequent quarters. Still, its efforts will primarily be focused on the development of its Silangan project,” Philex Mining said.
Shares in Philex Mining fell by P0.05 or 1.6% to close at P3.08 apiece in the stock exchange on Wednesday.
Philex Mining is one of the three local units of Hong Kong-based First Pacific Co. Ltd., the two other 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 is controls. — Vincent Mariel P. Galang