Philex Mining Corporation’s latest quarterly results showcase a transitional stage for the company, as it faces operational challenges at its Padcal Mine and accelerates development of its upcoming Silangan Project.
In its report for the first quarter of 2025, Philex posted a core net income of Php 71 million, alongside an EBITDA of Php 329 million. While core earnings declined from Php 105 million in the same period last year, the company’s net income increased by 14%, reaching Php 131 million, up from Php 115 million in Q1 2024. This growth was primarily attributed to enhanced realized prices of gold and copper, which counteracted lower production outputs.
Operating revenues rose to Php 1.896 billion, driven by stronger commodity prices. Gold averaged US$2,587 per ounce, while copper reached US$4.32 per pound, both better figures than the recorded in the same period last year. Despite the favorable market environment, operating costs also climbed, reaching Php 1.764 billion, reflecting ongoing pressures from old infrastructure and increased expenditures.
Production figures advertised a mixed performance. Gold output dropped to 6,083 ounces, down from 7,803 ounces in Q1 2024, while copper production declined a bit to 4.595 million pounds. The company also reported a marginal increase in tonnage milled, processing 1.602 million tonnes of ore during the quarter.
As operational pressures increased at the Padcal Mine—now in its later years—Philex is increasingly shifting focus toward the Silangan Project in Surigao del Norte. The project, which is slated to begin commercial operations in the first quarter of 2026, has seen accelerated development in recent months.
“Copper and gold prices are high, in the face of global trade and supply chain uncertainties, brought about by recent economic policy changes,” said Eulalio Austin Jr., Philex President and CEO. “We take advantage of this to push forward the Silangan Project and the remaining Padcal potential.”
The company reported the fortunate arrival of major long-lead equipment packages despite ongoing global supply chain challenges, positioning the project to meet its 2026 target.
Austin emphasized the strategic importance of transitioning to Silangan to ensure continued revenue generation and resource development. “It is imperative that we usher Silangan into production based on schedule to initially augment the performance of the Padcal Mine while we are relentlessly pursuing other business opportunities,” he said.
The Q1 performance highlights Philex’s ever-changing operational landscape, with financial indicators reflecting the balancing act needed between current asset limitations and long-term project ambitions. As the company prepares for a post-Padcal future, investor attention will likely remain focused on the progress of Silangan and how effectively it can offset the declining returns from legacy operations.
Do you agree that the Silangan project is the future of Philex? Will the next quarter be better or worse for the company?
