Philex's Padcal mine output surges 62% to P4B in first quarter

MANILA, Philippines -  Philex Mining Corp., the country’s largest and most profitable gold and copper producer, said the value of metals produced from its Padcal mine surged 62 percent in the first quarter this year on the back of an increase in output.

In a filing with securities regulators, Philex said production from January to March 2011 amounted to P4.04 billion compared with P2.5 billion in the same period last year.

The value of shipments grew 50 percent during the period under review to P2.48 billion from P1.65 billion the previous year-period.

In March alone, Philex said the Padcal mine delivered 792,098 dry metric tons (DMT) of ore resulting in 5,661 DMT of concentrates containing 65.32 grams of gold 24.83 percent copper and 62.51 grams of silver per DMT.

Philex president Jose Ernesto Villaluna Jr. said the concentrates translated to 11,888 ounces of gold, 3.1 million pounds of copper and 11,377 ounces of silver.

The estimated value of March production is P1.33 billion, of which P741 million is from gold, P574 million from copper and P19 million from silver.

The estimated value is based on provisional metal prices of $1,435 per ounce of gold, $4.26 per pound of copper and $37.87 per ounce of silver, at the exchange rate of P43.43 to the dollar.

Meanwhile, Philex shipped last month 5,019 DMT of concentrates to Louis Dreyfus Commodities Metals Suisse SA containing about 11,368 ounces of gold, 2.75 million pounds of copper, and 11,198 ounces of silver.

The shipment has an estimated gross value of P1.24 billion consisting of P683 million from gold, P536 million from copper and P17 million from silver—based on average provisional metal prices of $1,384 per ounce of gold, $4.49 per pound of copper and $34.31 per ounce of silver.

Philex chairman Manuel V. Pangilinan earlier said that the firm has budgeted P3 billion for capital expenditures for 2011, of which P1.3 billion is for the development of the Padcal mine.

Aside from the Padcal mine, Philex is allocating P1 billion for its Silangan project and P700 million for the exploration of new areas.

The firm is also looking at other mines or properties that it can operate as part of its strategy for growth. “We’re looking at existing gold mines where profits may be enhanced in the next three years,” Pangilinan said.