Philex core profit more than doubles in nine months

MANILA, Philippines — Pangilinan-led Philex Mining Corp. reported a 116 percent jump in its core net income in the first nine months of the year to P1.87 billion, driven by higher copper prices and efficient operating costs.

In a disclosure to the Philippine Stock Exchange, Philex said total revenues grew by 22 percent  to P7.7 billion.

“This is attributable to the significant increase in the realized price of copper since the third quarter of 2020 resulting in a higher contribution of revenues from copper at 52 percent of total revenues for the nine months of 2021 from 40 percent of total revenues for the nine months of 2020,” Philex said.

Revenue contribution from gold declined to 47 percent, mainly due to the slightly lower gold output brought by lower copper grade.

Gold output totaled 41,295 ounces compared to last year’s 43,136 ounces.

Operating costs  inched up by three percent to P4.8 billion due to higher power and labor costs from higher tonnage milled, and higher excise taxes attributed to the higher total revenues.

“With higher metal prices and a better economic outlook for the mining industry moving forward, we can maintain the momentum of last year’s exemplary performance into this year, notwithstanding the pandemic and the challenges we have faced in our operations,” Philex chairman Manuel V. Pangilinan said.

“With the extension of Padcal mine life for another two years, the prospect of a viable financial package for our Silangan project, and the rollout of our vaccination program for our employees and their dependents, it looks like the full year 2021 will produce excellent results for your company,” Pangilinan said.

The Padcal mine’s life was extended rom Dec. 31, 2022 to Dec. 31, 2024.

It emphasized that the recent lifting of the moratorium on new mineral agreements would  pave the way for the development of stalled mining projects, which will lead to renewed investor’s interest in its Silangan project.