Philex Mining Corporation reported a 14% boost in net income in the first quarter of 2025, buoyed by stronger global copper and gold prices and favorable foreign exchange rates, despite production volumes declining.
In its quarterly report filed with regulators, the company said it earned Php131 million in net income for the January to March period, compared with Php115 million during the same period last year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to Php329 million, up 12% year-on-year.
Total revenues grew 5% to Php2.02 billion, attributed to higher average prices for both metals. Copper prices rose 8% to USD 4.32 per pound, while gold prices surged 26% to USD 2,587 per ounce. This helped offset lower production and metal recovery from the company’s Padcal Mine in Benguet.
“Despite lower ore grades and metal output, the favorable prices and forex movements provided a cushion to our operations,” the company said in the filing.
Gold production fell by 22% to 6,083 ounces, while copper output dropped 2% to 4.59 million pounds. Philex attributed the lower output to decreased ore grades and some equipment-related challenges at the site.
Operating costs for the quarter rose by 7% to Php1.76 billion, largely due to higher material, labor, and depreciation expenses. The average cost per tonne increased to Php1,126, reflecting the impact of lower production on fixed operating costs.
Currently, the company continues to invest heavily in the development of its Silangan Copper-Gold Project in Surigao del Norte, which is expected to begin commercial operations in early 2026. Construction activities progressed on the mine infrastructure, process plant, and tailings storage facility.
Capital expenditures for the Silangan Project amounted to Php1.01 billion in the first quarter, making up 80% of the company’s total capital spending for the period. Philex said it has secured loans and equipment needed to meet its production targets by next year.
As of March 31, Philex’s total assets stood at Php53.25 billion, while cash reserves declined to Php3.11 billion, reflecting ongoing development expenses.
The company declared a Php0.02 per share dividend in February, equivalent to 16% of its core net income. It also reported one fatal and nine non-fatal safety incidents at the Padcal Mine during the quarter, prompting continued review of safety protocols.
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