PHILEX MINING Corporation reported its income plunged in the first nine months of the year, on higher excise taxes and continued foreign exchange volatility.
In a statement, Philex Mining said its net income fell 49% to P570 million during the January to September period, from P1.132 billion a year ago.
Core net income dropped 41% to P687 million during the nine-month period, from P1.158 million during the same period in 2017.
The company attributed its financial performance to the “the significant negative impact of the doubling of the excise tax rate on mining under TRAIN Package I, together with higher depreciation, depletion and amortization; and a forex loss of P167 million due to a weak currency.”
With the implementation of the Tax Reform Acceleration and Inclusion (TRAIN) law this year, mining excise tax was raised to 4% from 2%.
Consolidated revenues as of end-September fell 8% to P6.59 billion from P7.18 billion a year ago “due to reduced metal output, partially offset by improved metal prices, and favorable foreign exchange rates.”
Philex Mining reported Padcal mine milled 6.529 million tons from January to September, up 4% from the 6.259 million tons milled last year, despite the suspension of production when typhoon Ompong hit the area in September. However, the company said the lower ore grades resulted in lower metal output.
“We are cognizant that our existing ore body is challenged to deliver the desired grades due to its mature state. To improve ore grades, a new mining level is being commissioned using sublevel caving method,” Philex Mining president and chief executive officer Eulalio B. Austin Jr. said in a statement.
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. — RJCI
