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Philex Mining reports P495-M profit as revenues improve

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PHILEX MINING Corp. posted a higher net income attributable to the equity holders of the parent company at P495.04 million for the third quarter, more than 10 times what it reported in the same quarter last year, due to better revenues.

In a stock exchange disclosure on Friday, the mining company said its core net income rose to P462.39 million, nearly eight times more than what it posted a year ago.

Revenues for the third quarter also went up 21.9% to P2.17 billion, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) went up 92% to P910.37 million. For a nine-month period, Philex Mining said its net income reached P919.59 million or about twice the P439 million it recorded a year ago.

Further, the company’s year-to-date revenues climbed 20.1% year on year to P5.85 billion, while its core net income amounted to P864.61 million.

According to Philex Mining, its gold output during the quarter increased 2% to 14,804 ounces while copper production fell 2.2% to 6.70 million pounds.

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Actual tonnage for the third quarter also dropped 7% to 1.99 million tons.

“Unrelenting efforts are continuously exerted to sustain higher tonnage on a year-to-date basis, and to execute the mining plan and mill operations to achieve better blended metal grades,” Philex Mining said in the disclosure.

From January to September, the mining company’s gold output rose 13.1% to 43,136 ounces while cooper production improved by 7.3% to 20.24 million pounds.

The operating costs of Philex Mining for the third quarter declined 6% year on year to P1.58 billion.

“This reduction was due to the continuous effort of the company to minimize operating costs and rationalize expenses, and manage the global impact of the pandemic on costs of commodities and products,” Philex Mining said.

Moving forward, Philex Mining said it expects the global demand for mineral products to grow despite the coronavirus disease 2019 (COVID-19) pandemic.

The company added that its projection is supported by the government’s recent announcement that encourages the revival of the mining industry as one of the ways to assist the local economy in recovering from the economic effects of the pandemic.

Philex Mining President and Chief Executive Officer Eulalio B. Austin Jr. said that the company’s performance for 2020 is expected to produce “substantially” higher profits compared with the previous year.

“The favorable outlook both at the global and national levels will benefit the continued operations of the Padcal mine and will likely attract interest of investors in the Silangan Project,” Mr. Austin said.

On Friday, shares in Philex Mining at the stock exchange rose 0.75% or P0.04 to close at P5.35 per piece.

Philex Mining is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls.

LIFTING OF BENGUET CORP. UNIT’S SUSPENSION

Separately, Benguet Corp. said it received a letter from the Region 3 office of the Mines and Geosciences Bureau (MGB) lifting the suspension on its subsidiary BenguetCorp. Nickel Mines, Inc. (BNMI), which has a nickel project in Sta. Cruz, Zambales.

It said the Department of Environment and Natural Resources and the MGB lifted the mineral production sharing agreement (MPSA) cancellation order and mining suspension order on BNMI on Oct. 20.

On Friday, shares in Benguet Corp. “A” rose 7.02% or P0.20 to close at P3.05 each while Benguet Corp. “B” increased 7.58% or P0.21 to end at P2.98 apiece. — Revin Mikhael D. Ochave

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