Philex Mining Corp. posted a drop in its 2023 core net income caused by lower output and increased operating costs and expenses.
Philex reported a Php 963 million income, 44.43% lower than the Php 1.733-billion net income posted in 2022 in a disclosure to the Philippine Stock Exchange on Thursday.
The Pangilinan-led mining company pointed out that the decline in its net income was partially mitigated by consistently favorable metal prices and a weaker peso. In its report, Philex said its total tonnage milled last year fell by almost 8%, from 7.342 million metric tons (MT) in 2022 to 6.853 million MT in 2023.
Gold and copper ore grades were reduced which led to a decline in output of both gold and copper at the mine. Philex experienced a decrease of over 20% in gold output, dropping from 48,567 ounces to 37,784 ounces. Copper production saw a 15% decrease, falling from 25.086 million pounds to 21.298 million pounds.
The decrease in mine output resulted in a Php 1.536-billion reduction in the company’s operating revenues for the past year, amounting to Php 7.726 billion compared to the Php 9.262 billion recorded in 2022.
Despite this, the mining firm implemented offsetting measures in its performance last year, notably benefiting from higher realized gold prices, which peaked at $1,964 per ounce in the fourth quarter, while copper averaged $3.76 per pound.
Conversely, Philex managed to decrease its operating costs and expenses by 6.27%, amounting to Php 6.673 billion in 2023 compared to Php 7.12 billion in 2022.
