Philex Mining Corporation reported a PHP 592 million net loss in the first quarter of 2026, reversing from a PHP 130.6 million net income in the same period last year, as production declines at its Padcal Mine due to damages.
The company attributed the drop to lower ore throughput and metal output, following damage to a portion of its crushing plant. Core net loss reached PHP 281 million, compared to a PHP 71 million core net income in Q1 2025.
Revenues stood at PHP 1.078 billion, while operating costs climbed higher to PHP 1.415 billion, resulting in a weaker operating position for the quarter.
At the Padcal Mine, tonnes milled fell 42% year-on-year to 931,000 tonnes, reflecting the impact of the damaged Secondary/Tertiary Crushing Plant. Gold output reached 2,227 ounces, while copper production totaled 1,869 pounds.
The company said the first-quarter performance reflects “transitional” operating conditions, as restoration work on the affected facility disrupted normal operations.
Despite the production setback, Philex noted that a sharp increase in gold prices helped cushion losses. Realized gold prices rose to USD 4,960 per ounce, up 92% from a year earlier.
Philex said repairs on the damaged crushing plant section have been completed, with production expected to normalize starting May 2026 as throughput gradually improves.
Meanwhile, the company’s Silangan Project is moving into a new phase, with its underground mine and tailings storage facility now substantially complete. The process plant is currently undergoing partial and progressive commissioning.
The timeline for the project’s first gold and copper production has been adjusted to within 2026, as the company adopts a more measured approach to commissioning its processing facilities.
“As this will be the first fully gold and copper oxide processing facility in the country we need to be conservative in the commissioning process,” said Eulalio Austin Jr., Director of PMC and Philex Gold Philippines, Inc.
The Silangan Project is expected to play a key role in supporting future output, even as the company works to stabilize operations at Padcal.
Can Philex’s production recovery and Silangan rollout offset its current losses in the months ahead?
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