Philex expects flat growth for 2017
June 29, 2017 | 8:11am
Philex Chairman Manny V. Pangilinan expressed optimism with the mining industry under environment chief Roy Cimatu. File
MANILA, Philippines — Pangilinan-led Philex Mining Corp. expects a flat growth for the rest of the year but sees a more positive mining industry with the new leadership at the Department of Environment and Natural Resources.
During the sidelines of the company’s annual stockholders meeting Thursday, Philex Chairman Manny V. Pangilinan said the firm will likely post the same profit it generated last year.
"It will probably be similar to 2016 because there are certain issues on the production but nothing serious. There is slight decline for ore which could impact the amount of gold and copper production for the year," he said.
"Profits will be similar, flattish and not much significant change," Pangilinan added.
Last year, Philex's net income more than doubled to P1.6 billion owing to better production output, higher metal prices and favorable exchange rates.
Philex is earmarking P1.8 billion for its capital expenditure where P700 million is allocated for mine development while the remaining budget is for machinery and equipment.
Pangilinan has expressed optimism with the mining industry under environment chief Roy Cimatu.
"He [Cimatu] seems to be a sensible Secretary and recognizes the value of mining. I think he has signal positive signs," he said.
Furthermore, Pangilinan remains positive with the prospects of its Silangan gold and copper project which is targeted to operate by 2020.
"We have completed the feasibility study and the conclusion is quite positive. We are expanding some parts of the feasibility to make it more comprehensive," he said.
The Silangan project is Philex’s next big prospective mine that will replace the Padcal copper-gold mine in Benguet whose mine life is expected to end by December 2022.
The company has invested over P13 billion for the initial exploration and related works on the site as of end-2014, on top of the estimated commercial-operations project cost of approximately $1.2 billion.
"We have completed all requirements from the government. It's a two-stage development, first is open pit then second is underground. We’ve seen significant reserves of high-grade ores in Silangan and it looks an attractive proposition," Pangilinan said.
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