Philex Mining Corporation recorded a 49.7% decline in its net income for the first half of 2023, due to a decline in metal production and copper prices.
In a disclosure to the Philippine Stock Exchange (PSE). the company announced that its net income dropped to Php 704.14 million from the Php 1.75 billion recorded in the same period last year.
Philex was able to produce 3.681 million tonnes of metal for the first half of the year, a four percent drop compared to the 3.531 million tonnes last year.
Gold output fell 19% to 20, 361 ounces, while copper declined by 12% to 11.173 million pounds in the period.
Due to this, the company’s core net income went from PHP 1.33 billion to PHP 701.5 million.
Meanwhile, its revenues also declined by 17.1 percent, from PHP 5.01 billion to PHP 4.16 billion.
Philex Mining also mentioned the aging equipment of its mill plant that has caused unforeseen machine malfunctions that slowed down production but has assured that it is addressing the said issue.
Meanwhile, the price of gold was six percent higher while copper is seven percent lower.
During the first half of 2023, pricing for gold is averaged at $1,924 per ounce while copper is averaged at $3.91 per pound.
The company recorded increased expenses and operating costs for this period, spending nearly PHP 3.34 billion due to its continued venture into implementing efficacy measures in its operations. This includes equipment parts and repairs, and purchase costs of the materials and supplies.
Even with lower production levels, Philex faced higher power costs due to higher operating costs and expenses.
The company also noted that it is on track with its development works on its Silangan Project in Surigao del Norte, following the completion of the east decline portal. Tunneling works have also begun with the arrival of the company’s equipment.
“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. We are all geared up for mining opportunities moving forward,” Philex President and CEO Eulalio Austin Jr.
