Philex Mining skirts drag from lower metal prices
DESPITE the continued slump in metal prices, profit of Philex Mining Corp. grew 14% in the first quarter following a one-time gain from an asset sale.
Net income rose to P305 million in January to March from P267 million in the same three months last year, unaudited consolidated statements of income disclosed yesterday showed.
Net income attributable to the parent firm likewise jumped by an annual 30% to P329 million.
“This was achieved despite the continued slump in metal prices and lower ore grades in Padcal,” Philex Mining said in its statement.
Core net income — which strips off one- time gains and losses — fell to P214 million from P278 million in the same comparative periods.
Revenues declined 8.5% to P2.193 billion from P2.7 billion a year ago, dragged by lower output and prices.
The company resumed operations of the Padcal mine in Benguet in August last year — allowing 88 days of operation in the first quarter of this year, com- pared to just 90 days in the entire 2014.
“During the same period, metal prices were depressed,” Philex Mining noted.
“In addition, the natural depletion of higher grade ores resulted in lower metal output.”
That led to the 2% decline in gold production to 25,997 ounces from 26,442 ounces; and 12% slump in copper output to 8.361 million pounds from 9.468 million pounds.
Philex Mining said these resulted in lower revenues for both gold and copper to P1.423 billion and P912.4 million, respectively.
Revenues from silver likewise dropped to P19.4 million from P22.1 million.
Consolidated operating costs and expenses in the first three months of the year were at P1.887 billion, 17% less compared to the previous year.
Particularly, production costs decreased by 14% to P1.561 billion; while general and administrative expenses went down by 34% to P188.5 million.
“These were the results of the Company’s operational enhance- ment initiatives and strict cost containment,” Philex Mining said.
The company also booked other income to the tune of P110 million, reversing the P49.1-million other charges a year ago.
Philex Mining had a one-time gain from the sale of its investment in Indophil Resources NL “as the company continued to look for ways to generate income to offset the impact of the lower metal price environment.”
Alsons Group last quarter gained full ownership of the Australian firm after it bought out the interest of other shareholders. Indophil was delisted from the Australian bourse following the completion of the transaction.
2018 COMMISSIONING
Philex Mining also reported that it received clearance that brings it a step closer to the commissioning of the Silangan mine in Surigao del Norte.
The company said it received an order from the Department of Environment and Natural Resources, approving the Declaration of Mining Project Feasibility (DMPF).
In effect, subsidiary Silangan Mindanao Mining Co., Inc. was authorized to proceed to the development and operating periods stipulated in its Mineral Production Sharing Agreement.
“This is indeed a very welcome news for the Company, amidst the overhang of weak global metal prices,” Philex President and Chief Executive Officer Eulalio B. Austin, Jr. said in the statement.
“The approval of the DMPF will facilitate the initial stages of mine development and bring us closer to the targeted commissioning of the project by 2018,” Mr. Austin added.
Shares of the company gained six centavos or 0.87% to end at P6.95 apiece yesterday.
Philex Mining is partly owned by Hong Kong- based First Pacific Co. Ltd., a major shareholder of Philippine Long Distance Telephone Co. (PLDT).
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in —