Philex earnings up 6% in 2017

Pangilinan-led Philex Mining Corp. reported a net income of P1.7 billion last year, up six percent on the back of improved metal prices despite lower production.

In a regulatory filing, Philex said revenues fell two percent to P10 billion due to lower metal output. The decline was partially offset by the improved prices in the world market and favorable exchange rates.

Gold revenue decreased 13 percent to P5.4 billion, while revenues from silver went down to P77 million.

Revenues from copper, however, increased by 13 percent to P4.5 billion.

The Padcal mine milled 8.7 million metric tons (MT) of ore, down seven percent. These translated to 30.1 million pounds of copper and 84,638 ounces of gold.

“While overall output was lower for the year, the last four months of 2017 showed a 15 percent improvement in tonnage compared with the average in the first eight months due to engineering interventions and additional manpower. These measures partially addressed the issues that affected production from January to August 2017,” the company said.

The higher average realized prices for gold at $1,273 per ounce and the increase in average copper prices at $2.96 per pound managed to offset the company’s lower production last year.

Meanwhile, the company pared down its debt to $49 million as of the end of last year with the continued repayment of short-term loans with local banks.

Last year, Philex spent P135 million for its social development and environmental management initiatives. It also paid P1.6 billion in taxes, royalties and other fees.

Philex has started to adopt the Mining Association of Canada’s Towards Sustainable Mining Initiative to formalize its adherence to internationally recognized mining, environmental and safety standards.

–