Philex earnings double to P920 million in 9 months

MANILA, Philippines — Pangilinan-led Philex Mining Corp. has more than doubled its net income to P920 million in the nine-month period ending September on sky-high world market prices.

In a regulatory filing, Philex said net income surged 110 percent as revenues went up 20 percent to P5.85 billion.

Philex said the increase in profit was due to higher operating revenues brought about by favorable gold and copper prices despite the coronavirus pandemic, and higher gold output mainly from higher ore grades.

“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,” Philex president and CEO Eulalio Austin said.

“As for the full year outlook, we expect 2020 to show substantially higher profits versus 2019,” he said.

Philex also expects the global demand for mineral products to continue to grow, thus creating favorable momentum for metal prices to maintain healthy levels.

Its outlook is further bolstered by the government’s pronouncement that encourages the revival of the mining industry as one of the ways for economic recovery.

Meanwhile, the Padcal mine milled 5.96 million metric tons of ore, slightly higher than the 5.94 million MT in 2019.

Gold output was also higher by 13 percent at 43,136 ounces while copper production also increased by seven percent to 20.24 million pounds.

Total cost and expenses decreased to P4.7 billion amid efforts to minimize operating costs and rationalize expenses, and manage the global impact of the pandemic on costs of commodities and products.

As an export-oriented company, Philex was allowed to remain operational during the enhanced community quarantine with Padcal continuing to function in strict compliance with the applicable government mandated operating guidelines.

Philex has partially resumed underground operations at 50 percent operational capacity after its temporary suspension due to COVID-19 infected employees.

The total number of active cases in the Padcal mine is 143, consisting of both employees and from the community. None of the active cases are classified as serious, Philex said.

The mine site has isolation quarantine facilities and emergency quarantine facilities that currently house the majority of the active cases.

Total bed capacity of 135 will be increased by 200 in the coming days.