Philex Mining Corporation’s net income declined to P 206 million for the first quarter of 2019 with core net loss standing at P 112 million weighed down by weaker metal production due to declining ore grades.
“As it nears the end of mine life, we have centered efforts on maximizing the remaining cash generation capacity of Padcal,” said Mr. Eulalio B. Austin Jr., President and Chief Executive Officer of Philex Mining, in a press release issued by the company Tuesday, May 7.
According to the press release, Philex Mining only recorded 1.832 million tons of milled output first quarter of 2019. This is lower compared to the 2.197-million ton of milled output the mining firm produces same period last year.
Philex Mining explained that it is a typical occurrence for mining grades to lessen when drawing ore outside of the core of the deposit.
Philex Mining added that the decline on the recent metal output was a result of by unscheduled maintenance of some mining equipment and forest fire incidents around the mine camp that caused power outages and the immediate deployment of operations personnel to aid in fire suppression.
Gold production was at 10,493 ounces and 5.727 million pounds versus previous year’s levels of 17,947 ounces. Copper production, on the other hand, reached 7.073 million pounds.
Compared to $1,338 per ounce and $3.10 per pound last year, gold and copper were at $1,304 per ounce and $2.96 per pound so far this year.
Meanwhile, production cost of the company raised one percent to P1.074 billion from P1.064 billion in the first quarter of 2018 caused mainly by critical mining equipment undergoing periodic.
The mining firm said that it will continue to implement operational enhancement to improve its financial performance in the coming quarters. Philex Mining’s Silangan mine is said to have a financial equity and project financial advisors soon.
Additionally, conclusion of the ongoing definitive feasibility studies by early third quarter of this year is expected from Ausenco, lead technical consultant Australian-based engineering firm tapped by Philex Mining.
