Philex reverses losses, posts P312.4-M profit in 2013

MANILA, Philippines - Listed Philex Mining Corp. has reversed losses incurred in 2012 as its Padcal copper-gold mine in Benguet operated for more months last year.

In a regulatory filing, the Pangilinan-led mining firm reported a net income of P312.4 million, reversing losses of P310.8 million in 2012.

“The return to profitability came after the resumption of operations at the Padcal mine in Benguet province,” the company said.

In 2013, the Padcal mine operated for only seven months compared to 10 months in 2013.

In August 2012, the mine suffered a major tailings spill, forcing the company to suspend operations. The Mines and Geosciences (MGB) allowed the resumption of operations in March 2013 upon submission of a rehabilitation work plan and containment of the tailings.

The company’s consolidated revenues for the period rose to P9.80 billion from P8.70 billion in 2012.

The higher number of operating days enabled gold production in 2013 to rise by 40 percent to 98, 802 ounces and copper production to rise by 46 percent in 2013 to 32.50 million pounds.

Higher metal production renabled the company to cope with lower metal prices in the world market.

With the company’s return to profitability, its board of directors approved the distribution of cash dividends amounting to five centavos per share to shareholders as of the record date of March 12, 2014, payable on March. 26, 2014.

The MGB is now reviewing the application of Philex for the permanent resumption of operations. Philex assured it has completed the mine rehabilitation work listed in its work plan. 

Philex is also appealing for the reduction of the fine and the  number of days covered by the imposition of the penalty for violation of the Clean Water Act by the Pollution Adjudication Board (PAB).

In a recent interview, Philex chairman Manuel V. Pangilinan said the company is scouring the environs of the mine for viable deposits that could extend its mine life beyond 2020.

“This year’s achievements are quite remarkable, especially when taken in the context of the current very challenging business environment - particularly the general attitude towards mining,” said Philex president and CEO Eulalio Austin.

“We are pleased to to fulfill our commitment to the rehabilitation of TSF3 and are grateful for the confidence of our shareholders, employees and other stakeholders who have stayed with us on our path to recovery,” he added.

He said the company continues to eye expansion opportunities in the medium term and means of optimizing production.

The company is also pre-developing the Silangan copper-gold Project in Surigao del Norte.

In the filing, Philex said that after securing the endorsements from host local government units, metallurgical studies are now being conducted to determine the processes needed for higher metal recovery.

The Silangan Project involves the development of the Boyongan and Bayugo deposits through its wholly-owned subsidiary Silangan Mindanao Mining Co.Inc.

Silangan Mindanao Mining president and chief operating officer (CEO) Yulo E. Perez said the pre-Feasibility study for the project is seen to be completed mid-2014.