Philex core income dropped 90% in March

MANILA, Philippines—The consolidated core income of Philex Mining Corp. dropped by 90 percent to P132 million in March because of a reduction in the operations of its Padcal copper-gold mine in Benguet.

The company’s reported net income during the period also dipped by 68 percent to P403 million.

Philex chairman Manuel V. Pangilinan said the results of the first quarter reflected only about 23 to 24 days of operation.

“We were allowed to operate starting March 8,” he told reporters at the sidelines of the company’s stockholders’ meeting. Because of a suspension order, the company could not operate the Padcal mine in January and February.

In 2012, on the basis of a fully operational first quarter, Philex’s core income amounted to P1.330 billion, while its reported net income reached P1.268 billion.

Philex later said in a statement that the settlement of the company’s pollution liability insurance claim worth P1.017 billion “substantially covered the losses in the first two non-operational months.”

The company had to settle the claims arising from a spill at the Padcal mine’s Tailings Storage Facility 3.

Since it resumed mining operations last March 8, the company generated P889 million in revenue, Philex said.

“We have faith that Padcal will get back on its feet, stronger than before, having proven that it can overcome even tremendous setbacks like the one that it just faced,” Pangilinan said.

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