Struggling mine production pulls down Philex earnings in Q2

MANILA, Philippines — Profits of Pangilinan-led Philex Mining Corp. hit some snags in the second quarter due to gold and copper output retreating and ageing equipment hampering production.

In a disclosure sent to the Philippine Stock Exchange on Thursday, Philex reported its core net income retreated 52% year-on-year to P314 million in the April-June period.

Earnings before interest, taxes, depreciation, and amortization plunged 52.77% on-year to P553 million in the second quarter.

Philex indicated that lower tonnage milled in the second quarter faced some hurdles, leaving gold and copper output to shrink by 21% and 13%, respectively. The mining firm milled 1.825 million tonnes in the same period, 2% lower compared with a year ago.

Production struggles, due to “unscheduled breakdowns” at its mill plant due to ageing equipment, pared milled output by 4% to 3.531 million tonnes in the first six months.

On a quarterly basis, gold and copper output rose by 2% each compared to the first three months of 2023.

That said, the ascent of gold prices mitigated retreating copper prices in the second quarter.

Operating costs and expenses tempered their earnings as well, climbing up 2.28% on-year to P1.7 billion in the second quarter owing in part to rising power costs despite lower tonnage milled.

“Cautious optimism is still the name of the game,” according to Philex president and CEO Eulalio Austin Jr.

“The first half of the year was challenging, no doubt, but we are still confident that, with the Silangan Project and other prospects in the pipeline, the situation would improve,” Austin added.

Shares in Philex currently trade 2.61% down at P2.98 apiece as of 11:20 Thursday morning. — Ramon Royandoyan