Philex swings to PHP 392 million profit as Padcal output rebounds

Philex Mining Corporation returned to profitability in the second quarter of 2026, posting a consolidated net income of PHP 392 million as operations at its Padcal mine recovered.

The result reversed the PHP 592 million net loss recorded in the first quarter and was more than double the PHP 171 million net income posted in the same period last year.

Philex attributed the turnaround to the normalization of the Padcal Mill following the rehabilitation of its secondary and tertiary crushing plant, alongside sustained gold and copper prices.

Net revenues more than doubled quarter on quarter to PHP 2.423 billion from PHP 1.078 billion, while earnings before interest, taxes, depreciation, and amortization reached PHP 974 million from a negative PHP 129 million in the previous quarter.

Padcal processed 1.56 million tonnes of ore during the quarter, up 68% from 931,000 tonnes in the first quarter.

Gold production increased 80% to 4,011 ounces, while copper output rose 81% to 3.388 million pounds.

Realized metal prices also supported the recovery. Gold averaged USD 4,136 per ounce in the second quarter, still 65% higher than the USD 2,504 per ounce recorded in the same period last year.

Copper averaged USD 6.23 per pound, up from USD 4.53 per pound in the first quarter and USD 4.09 per pound in the second quarter of 2025.

Despite the stronger second-quarter performance, Philex still reported a PHP 200 million net loss for the first six months of 2026, reversing the PHP 301 million net income posted in the same period last year.

The company attributed the first-half loss mainly to unrealized foreign exchange losses from the restatement of dollar-denominated loans at Philex and, in particular, at the Silangan project level.

Core net income for the first half improved 56% to PHP 212 million from PHP 136 million a year earlier, while EBITDA rose 29% to PHP 845 million from PHP 654 million.

Philex said these figures reflected the underlying improvement in its operations despite the reported net loss.

The company expects the operational momentum recorded at Padcal during the second quarter to continue through the rest of 2026 following the completion of the crushing plant rehabilitation and amid sustained higher gold and copper prices.

Meanwhile, progressive commissioning of the Silangan process plant remains underway, with completion targeted for the fourth quarter of 2026.

EEI Corporation is turning over completed areas of the plant to Silangan Mindanao Mining Company Inc., allowing the company and its consultant, Ausenco Pty. Ltd., to continue commissioning activities.

Can stronger Padcal production and the completion of Silangan commissioning sustain Philex Mining’s earnings recovery through the rest of 2026?

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