Philex Q3 net income retreats as copper prices fall

MANILA, Philippines — Philex Mining Corp. reported their profits plunged in the third quarter due to decreasing copper prices and lower metal output. 

In a disclosure sent to the Philippine Stock Exchange on Friday, the mining giant said net income sank 70.7% year-on-year to P210 million from July to September. The decline was “mitigated” by foreign exchange rates, the company said.

This pushed the company’s year-to-date bottom-line to P1.54 billion, comparably lower by 17% than their haul a year ago. 

Revenues from July to September likewise retreated 15% year-on-year due to lower gold and copper prices. 

“In spite of the current concerns worldwide, particularly on the high levels of global inflation, the volatility of currencies and of metal prices, we maintain a positive outlook, considering that copper, one of our major products, has been identified as a green metal necessary for the global fight against climate change,” Eulalio Austin Jr., company president and chief executive, said.

Philex’s production output increased 6.6% year-on-year to 1.87 million tons in the third quarter, with its gold output declining while offsetting copper ore grade output improved. 

Besides the haul reduction, Philex’s operating cost and expenses increased 12.5% year-on-year to P1.8 billion, as power rates and material prices increased. Their operation costs and expenses in the first nine months of the year felt the impact of rising inflation and Russia’s invasion of Ukraine. 

Earnings before interest, taxes, depreciation, and amortization — another measure of financial performance — amounted to P611 million in the third quarter, lower than their haul in previous quarters this year. 

As of 2:30 p.m., shares in Philex were trading up 0.43%.