Philex doubled profit in 2016

Philex Mining Corp. doubled its net income to P1.6 billion in 2016 when the Department of Environment and Natural Resources’ said its Padcal project passed a mine audit, and before its subsidiaries faced cancellation of their contracts.

The gold and copper producer said Wednesday that its core net income also surged 83 percent to P1.67 billion as consolidated revenue rose 12 percent to P10.3 billion.

Last year’s strong showing was attributed to better copper output, higher metal prices and favorable exchange rates.

Philex said the definitive feasibility study—a key step toward mine operation—for subsidiary Silangan Mindanao Mining Co. Inc.’s (SMMCI) project in Surigao del Norte was “expected to be completed soon and despite the current uncertain regulatory environment.”

SMMCI’s mineral production sharing agreement was among the 75 contracts that Environment Secretary Regina Lopez said last Feb. 14 she wanted canceled “because they covered watershed areas.”

SMMCI hopes to develop the $2-billion Silangan copper-gold project that would replace the group’s current biggest revenue source—Philex Mining Corp.’s Padcal mine in Benguet which is expected to end production life in 2022.

Subsidiary Philex Gold Philippines has four MPSAs threatened with cancellation.

“Contrary to media pronouncements, we are confident Silangan’s MPSA is valid and legal because it is not within any proclaimed watershed forest reserves or critical watersheds, where mining is prohibited,” SMMCI president Yulo E. Perez said in a statement.

Yulo said SMMCI’s MPSA “was issued following all relevant legal requirements and procedures, including regulatory clearance, that the area covered by the MPSA is open to mining.