Pangilinan-led Philex Mining Corp. stated that its net income for the first quarter of this year was P389.57 million, which is lower compared to the P690.39 million earned in the corresponding period last year.
In a disclosure to the Philippine Stock Exchange, Philex Mining said that a 43.6% decrease in earnings is caused by a reduction in metal production.
There was also a decline in core net income, which decreased by 42.6% from P676.17 million to P387.89 million.
Despite favorable gold prices and foreign exchange rates, reduced metal output hindered Philex Mining from “these positive trends.”
Philex Mining’s tonnage milled decreased by six percent to 1.706 million tonnes from 1.822 million tonnes in the same period last year due to equipment issues. Replacement parts have been ordered by the mining firm to address the problem.
Although ore grades remained unchanged, gold output decreased by 17% to 10,062 ounces from 12,097 ounces, while copper output declined by 11% to 5.531 million pounds from 6.181 million pounds
Philex Mining earned operating revenues of P2.105 billion during the first quarter, reflecting a 16.7% decrease from P2.528 billion earned in the same period last year, due to factors such as production and pricing level.
The total operating costs and expenses of Philex Mining amounted to P1.636 billion, which is only 1.1% lower than the P1.655 billion incurred in the previous year.
Philex Mining reported that even though there was an increase in the purchase costs of materials, supplies, equipment parts, and repairs, it was able to offset this through the implementation of efficiency measures in its operations. However, higher power rates led to an increase in operating costs and expenses despite a lower production level.
The company has a positive outlook for gold this year, given the geopolitical risks, economic uncertainty, and recession that are being faced.
However, it anticipates a decline in the value of copper this year, despite the expected increase in demand for the metal, which is attributed to its use in green technology.
Philex Mining managed to maintain safe price levels, which allowed them to allocate their resources towards the recovery program and the much-needed repairs on their old equipment.
On the Silangan Project, Philex Mining said that the construction of the east decline portal was on schedule to finish by the end of the first quarter.
The company is in the final stages of the debt syndication process for the project’s funding, following last year’s stock rights offering.
Philex president and CEO Eulalio Austin, Jr. expressed the company’s commitment to pushing the Silangan development forward, improving their recovery program, and prolonging the life of their Padcal mine.
