Philex's Padcal mine output up 72% to P2.7B in Jan-Feb

MANILA, Philippines - Philex Mining Corp., the country’s most profitable miner, reported yesterday that the value of ore produced from its Padcal mine increased 72 percent in the first two months of the year on the back of higher output and improving metal prices.

In a disclosure to the Philippine Stock Exchange, Philex said the Padcal mine in Benguet province produced P2.71 billion worth of ore from January to February 2011, equivalent to 1.48 million dry metric tons of ore as against 1.33 million DMT in the same period a year earlier.

In February alone, production amounted to P1.26 billion, according to Philex president Jose Ernesto Villaluna Jr.

The mine delivered 708,553 DMT of ore resulting to 5,230 DMT of concentrates containing 66.58 grams per DMT of gold, 24.24 percent copper, and 64.12 grams per DMT of silver.

This resulted in about 11,324 ounces of gold, 2.8 million pounds of copper and 10,789 ounces of silver.

Provisional prices were at $1,410 per ounce of gold, $4.47 per pound of copper and $33.49 per ounce of silver. At the exchange rate of P43.837 to the dollar, the month’s output is equivalent to P700 million from gold, P548 million from copper, and P16 million from silver.

Meanwhile, Philex reported that its shipment originally due for lifting in February 2011 was delayed due to the late arrival of the vessel for this shipment. It added that the shipment has already been loaded for sailing on March 7, 2011.

Philex chairman Manuel V. Pangilinan has said earlier that the firm has budgeted P3 billion for capital expenditures for 2011, of which P1.3 billion would go to the development of the Padcal mine.

Aside from the Padcal mine, Philex is allotting P1 billion for its Silangan project in Surigao and P700 million for the exploration of new areas.

The firm is also looking at other mines or properties that it can operate as part of its strategy for growth. “We’re looking at existing gold mines where profits may be enhanced in the next three years,” Pangilinan said.

Philex had confirmed to the PSE that it continues to negotiate with Manila Mining for the possible acquisition or joint development of the latter’s Kalayaan project which is adjacent to the Boyongan project of Philex.