Lower output, higher expenses hit Philex in Q1

MANILA  -Despite favorable metal prices, Pangilinan-led Philex Mining Corp. posted a 43-percent slump in net income in the first quarter of 2023 due to lower production and an increase in expenses.

In a disclosure on Friday, Philex Mining reported a net income of P389.6 million from P690.4 million in the same quarter last year even if gold prices and foreign exchange rates were favorable.

“However, lower metal output held back these positive trends,” it added.

Revenues for the period declined by 16 percent to P2.1 billion while core net income declined by 42.6 percent to P388 million.

During the quarter, gold prices rose to $1,889 per ounce while copper prices declined to $4 per pound.

Tonnage milled decreased by 6 percent to 1.706 million tons as Philex Mining said it already ordered the replacement parts while addressing issues with the grinding equipment at the mill plant.

Gold production shrank by 17 percent to 10,062 ounces and copper production was 11 percent down at 5.531 million pounds.

Total operating costs and expenses were slightly higher at P1.6 billion and about half of it went to production amounting to P1.3 billion.

“The increases in the purchase costs of the materials and supplies as well as equipment parts and repairs were offset by the continued implementation of the efficiency measures in operations,” said the mining company.

“Higher power rates increased operating costs and expenses despite lower production level,” it added.

Meanwhile, earnings before interest, taxes, depreciation and amortization reached P635 million, down by 46 percent. INQ

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