Philex posts higher Q1 income despite lower tonnage

Philex Mining Corporation reported that its net income improved 3.0 percent to R432 million in the first quarter of 2017 from R420 million a year ago while attributable net income improved a percent for R426 million.

In a disclosure to the Philippine Stock Exchange, the firm said its core net income rose 18 percent to R458 million for the first quarter of 2017 from R389 million in the same period last year.

“The improvement in the Company’s financial results was attributed to higher metal prices, partly offset by lower metal output,” Philex said. The lower tonnage was due to the fewer operating days and equipment availability issues.

The Padcal mine operated for 88 days in the first quarter of 2017, compared to 90 days a year ago, and milled 1.998 million metric tons of ore, lower than the 2.325 million tons registered in the first three months of 2016.

Philex said it has initiated measures to improve metal recovery, by enhancing the flotation process, to offset the lower milling tonnage.

In particular, the metal recovery rate for copper increased to 84 percent from 81 percent in the first quarter of 2016 as grades improved to 0.209 percent from 0.204 percent.

Similarly, the recovery rate for gold rose to 83 percent from 80 percent while grades improved to 0.421 grams per ton (g/t) from 0.405 g/t.

As a result, the first quarter 2017 yielded 7.752 million pounds of copper (from 8.425 million pounds) and 22,451 ounces of gold (from 24,200 ounces).

Consolidated revenues amounted to R2.54 billion in the first three months of 2017 from R2.39 billion in the same quarter last year, due to improved metal prices and favorable exchange rates, partly offset by lower metal output.