Philex 9-mo profit jumped 116% to P1.87B

The steady increase in gold and copper prices boded well for the country’s biggest gold producer, Philex Mining Corp., as it reported a core net income of P1.87 billion at end-September, a 116-percent surge.

The firm also attributed its 9-month performance to sustained metal output, efficient deployment of operating costs and expenses and favorable foreign exchange rate.

During the third quarter alone, Philex generated higher tonnage at 2 million tons against 1.99 million tons in the same period last year and 1.94 million tons in the second quarter.

While it produced a slightly lower gold output of 14,270 ounces, it was able to bring its copper output to 6.54 million pounds.

The upward trend in metal prices and the favorable exchange rate also allowed Philex to record revenues of P7.74 billion at end-Sept., up 22 percent.

The issuance of Executive Order No. 79, which lifted the suspension on the approval of new mining deals, is also expected to renew investors’ interest in Philex’s Singalan Project. This is considered one of three major projects that would make the country a major copper producer in the world.

According to Philex, it is currently exploring viable financial packages that could bankroll a phased development approach for the mining project.

“With higher metal prices and a better economic outlook for the mining industry moving forward, we can maintain the momentum of last year’s exemplary performance into this year, notwithstanding the pandemic and the challenges we have faced in our operations,” said Philex chair Manuel V. Pangilinan.

“With the extension of Padcal mine life for another two years, the prospect of a viable financial package for our Silangan project, and the rollout of our vaccination program for our employees and their dependents, it looks like the full year 2021 will produce excellent results for our company,” he added.