Philex earns P1.54 billion in 9 months

MANILA, Philippines — The core earnings of Philex Mining Corp. declined by 17 percent to P1.54 billion from January to September this year compared to P1.86 billion in the same period last year on the back of lower copper prices and metal output.

In a disclosure to the Philippine Stock Exchange (PSE), Philex said its net income retreated by 12.9 percent to P1.64 billion during the nine-month period from last year’s P1.88 billion.

The mining firm attributed the decline in the nine-month income to lower copper price, decreased metal output, and higher power rates despite the efficient deployment of operating costs and expenses.

For the third quarter alone, Philex reported a 70 percent drop in core net income to P210 million from P716 million in the same quarter last year last year.

The third quarter core income tapered off from the P676 million achieved in first quarter and the P657 million posted in second quarter.

The company attributed the drop “mainly due to lower copper prices, ameliorated with favorable foreign exchange rates and managed operating expenses.”

In terms of reported net income, Philex registered a 67 percent slide to P240 million in the third quarter.

The company said its total tonnage milled reached at 1.873 million tons in the third quarter this year, lower compared to the two million tons last year.

Its third quarter gold output declined from 14,270 ounces to 12,144 ounces due to lower tonnage milled and slightly lower gold grade.

On the other hand, copper ore grades remained higher and improved in the July to September period, which mitigated the impact of lower tonnage milled to total copper output during the quarter.

In terms of topline figures, the company’s revenues slipped by 15 percent to P2.25 billion in the third quarter on the back of lower gold and copper prices, tempered by favorable exchange rate effect.

For the nine-month period, Philex’s revenues inched lower from P7.742 billion to P7.677 billion. Net revenues, after smelting charges, were P2.04 billion for the third quarter and P7.06 billion as of end-September.

Higher power rates, as well as elevated cost of materials and supplies, pushed up its third quarter operating cost and expenses from P1.6 billion to P1.8 billion, while the January to September figures went up from P4.84 billion to P5.12 billion.

Philex said the higher procurement costs of materials and supplies was a result of the higher inflationary global environment brought about by the pandemic, and the Russian invasion of Ukraine.

The company said ground works have already commenced at the Silangan Copper and Gold Project in Surigao del Norte, in accordance with its in-phase mine plan, following the completion of the stock rights offer last Aug. 3.

To complete the funding requirement for the development of Phase 1 of Silangan, Philex has commenced the debt syndication process led by BDO Capital and Investment Corp. as the lead arranger.

The mining company is currently completing the front-end engineering design works.

To date, Philex continues with the earthmoving works for the construction of the ventilation pad and the box cut portal necessary for the commencement of the underground tunneling works. In addition, advance de-watering works are also being undertaken in preparation for the driving of the decline tunnel.