Pangilinan-led Philex Mining Corp. posted a net income of P843.9 million in the first nine months of 2023, a downturn of 48 percent from P1.6 billion in the same period a year ago as it recorded lower production and sales.
In a disclosure, the listed mining company said revenues decreased by 15 percent to P5.95 billion from P7.05 billion year-on-year.
It milled a total of 5.225 million metric tons, slightly lower than 5.554 million MT previously.
Gold production declined by 22 percent to 29,136 ounces, while copper output dipped by 14 percent to 16.396 million pounds.
Gold and copper prices in the July–September period remained within similar levels as in the previous quarter.
The price of gold rose by 13 percent to $1,927 per ounce, while that of copper inched up by 3 percent to $3.73 per pound.
Amid higher metal prices, total operating costs and expenses were lower at P4.97 billion. On a quarterly basis, costs and expenses fell to P1.63 billion.
“This was due to the lower tonnage milled and continued implementation of efficiency measures in operations, which mitigated the increases in the purchase costs of the materials and supplies, as well as equipment parts and repairs,” the firm said.
“Power costs, however, continued to raise operating expenses despite lower production level,” it added.
Philex Mining said it remains optimistic about the mining business despite the challenges it faced this year, owing to the new opportunities ahead.
Philex Mining president and CEO Eulalio Austin Jr. said they are exploring the vicinity of Padcal mine in Benguet and the viability of exhausting reserves in the mining site under the current drain tunnel, which could extend its mine life beyond 2027.
Padcal prospects
“If the study yields positive results, this could further extend Padcal’s mine life beyond 2027. Hopefully, we can have the initial results by the end of the year,” Austin said.
Philex Mining chair Manuel Pangilinan said the firm seeks to venture into nickel mining to meet the increasing demand of the mineral by the electric vehicle industry.
“We are prospecting for nickel resources to develop in this country because the future for electric vehicles is bright, so we have to be well-positioned for this opportunity,” Pangilinan said.
Meanwhile, Philex Mining said development works continue on the Silangan Copper and Gold Project in Surigao del Norte with the ongoing tunneling works.
It is close to completing clearing works and access road to the tailings storage facility area with the issuance of the permit by the municipality of Sison for the facility, as well as securing the project footprint.
The company is set to sign the syndicated debt facility led by BDO Capital and Investment Corp. to raise at least $100 million for the Silangan project this month.
This would complete the project’s funding requirements after last year’s stock rights offering and capital infusion from Philex Mining.