Philex Mining Corporation recorded a Php676 million net income for the first quarter, 25% higher than the Php540 million it registered in the same period last year.
The Manny V. Pangilinan-led firm attributed the increase to higher ore grades, favorable metal prices, and efficient operating expenses.
Operating revenues for the first quarter were at Php2.72 billion, up 7.5% percent year-on-year, due to higher production.
Tonnage milled for was 10% lower at 1.822 million tonnes from 2.025 million tonnes prior due to the unscheduled breakdown of mill equipment. Gold output was 9.8% lower at 12,097 ounces (oz) versus 13,413 oz year-on-year. On the other hand, Copper output was 8.7% lower at 6.18 million pounds (lbs) versus 6.77 million lbs previously.
“The first quarter of the year bore much promise that the mining industry, like the economy, was well on its way to full recovery with the tapering off of the global threat of COVID-19 and the relaxation of stringent quarantine and lockdown guidelines,” Philex President and CEO Eulalio Austin, Jr. said in a statement.
“The country, it seemed, was back in business and Philex continued to ride on the strength of sustained production and revenue levels, and took full advantage of the wave of increase in global metal prices. However, the current situation in Ukraine and its impact on the global supply chain and commodity markets makes us tread cautiously towards the remaining months of the year. We are still hopeful that the conflict in Europe will end soon enough. We move with caution and continue to assess and reassess our plans and our strategies,” he added.
In this regard, Philex Chairman Manny V. Pangilinan said the company views the current global situation with “guarded optimism.”
“Though there are gains to be realized with the spike in the prices of gold, copper, and even nickel, the current tension that is unfolding in Ukraine might impact the country’s and the industry’s pursuit of recovery post-pandemic. If the conflict pushes inflation upward, it could affect the country’s economic growth,” he emphasized.
Philex is currently working on its Silangan copper-gold project in Surigao del Norte. The project requires an initial investment of $224 million for its first phase alone.
