Philex Mining Corporation can extend the life of its Padcal mine until 2027 if gold prices stay above USD 2,000 an ounce which would ensure that the firm remains profitable.
In a report by Philippine Star, Philex CEO and president Eulalio Austin Jr. said that they are looking forward to extending the life of the mine in Tuba, Benguet, possibly lasting until 2027, predicated on the current world prices of gold and copper.
According to the latest World Bank report, gold prices are currently valued at around USD 2,300 an ounce while copper prices are only around USD 4.3 per pound.
Austin Jr. said that the firm is happy with the prices for copper and gold, as Padcal has been producing gold at USD 1,800 an ounce and copper at USD 3.4 per pound. However, Padcal’s costs also increased because of inflated costs of fuel and electricity.
The Philex chief executive added that the mining firm is trying to go deeper in terms of mining or sustaining the maintenance of their old equipment.
In 2023, Philex managed to extend Padcal mine’s life by an additional three years, or 2027, after further drilling confirmed the presence of additional mineable reserves.
Confirmatory drilling and technical studies of the mining process and Tailings Storage Facility No. 3 showed an additional 2.024 million tons of profitable deposits at the Padcal mine.
