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Philex profit rises on high gold prices

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PHILEX MINING CORP. posted an attributable first-half income of P424.55 million, up 8.5% from a year ago due favorable gold prices and sustained momentum in its business operations since the third quarter of last year.

In the second quarter alone, it reported to the stock exchange a core net income of P299.51 million, without disclosing the comparative figure a year ago. But it said core income in the first quarter was at P102.72 million.

“Given prevailing high gold prices and poor economic prospects for balance year, it looks like Philex is headed towards a better full year performance in 2020 compared with 2019 — provided we are able to maintain our production volume and improve mining efficiencies,” Philex Chairman Manuel V Pangilinan was quoted as saying in the disclosure.

Revenues for the company during the first half of the year reached P3.68 billion, higher by 19% compared with P3.09 billion a year ago. Of the semester’s top-line figure, P1.97 billion was posted in the second quarter.

Philex said its total tonnage milled for the second quarter rose 1% to 2.002 million tons against 1.973 million tons during the same period last year.

The company said its gold output for the second quarter rose 7.5% year on year to 14,173 ounces while copper output increased 8% to 6.80 million pounds.

Philex said its earnings before interest, taxes, depreciation, and amortization (EBITDA) during the second quarter amounted to P708.46 million while its operating costs and expenses were at P1.55 billion for the period.

Meanwhile, the mining company said that since April, the flow of its critical materials and supplies has returned to normal, with a boost from its new suppliers base.

Philex said it was confident that it had developed reliable supply sources of its critical materials, supplies, and equipment replacements.

Philex President and Chief Executive Officer Eulalio B. Austin, Jr. said the company had adjusted its supply chain model based on the “new normal” in order to lessen the risk of possible disruptions amid the coronavirus disease 2019 (COVID-19) pandemic.

“We also have put in place adequate health protocols to protect our employees, both in Padcal mine and at the Head Office, as they continue to perform their day to day work in the office, underground mining and mill operations,” Mr. Austin said.

On Monday, shares of Philex Mining rose 1.57% or P0.05 to close at P3.24 per share.

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. — Revin Mikhael D. Ochave





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