Higher operating costs eat into Philex earnings
MANILA, Philippines-Elevated metal prices and favorable foreign exchange rates fell short of bolstering the profitability of listed Philex Mining Corp. as it incurred higher expenses in running its operations.
In a stock exchange disclosure on Thursday, the Pangilinan-led mining firm said its net income attributable to equity holders of the parent company declined by about 20 percent to P810.2 million in 2024 from P1.02 billion in 2023.
Although revenues dropped by almost 6 percent to P8.18 billion, costs and expenses rose by 9 percent to P7.23 billion due to elevated prices of materials and supplies.
READ: Philex Mining 9-month income down 24.6%
Production costs accounted for the majority of Philex Mining’s expenditures in the past year, rising by 7.7 percent.
The company said gold and copper prices were at “relatively higher levels throughout the year, while foreign exchange rate continued to improve through the fourth quarter of 2024.
It noted that realized gold prices reached $2,419 per ounce in the fourth quarter. On the other hand, copper prices peaked at $4.57 per pound in the third quarter before averaging $4.32 per pound for the remainder of the year.
Tonnage milled stood at 6.809 million tons, slightly lower than 6.853 million tons.
Gold output decreased by 19 percent to 30,702 ounces while copper production went down by 7 percent to 19.780 million pounds.
“In 2025, we will navigate the challenges of operating an old yet viable mine like Padcal and commissioning a new mine like Silangan,” Philex Mining president and CEO Eulalio Austin Jr. said.
”Padcal still has the potential, and we are looking at pulling out all the stops, so to speak, to ensure its survival in its projected 2028 mine life and even beyond,” he added.
Philex Mining said its Silangan copper and gold project in Surigao del Norte province is slated to begin operations by the first quarter of 2026.
The mining project marked a “major milestone” with the underground main access decline reaching the Santa Barbara 1 ore body (formerly Boyongan ore body) as of Jan. 18.
It also recorded 7.5 million uninterrupted manhours without loss time accident.
“It is imperative that Silangan be ushered into production before the expected mine life of Padcal comes to a close,” Austin said, adding that the company would “protect the showstoppers to avoid any further delay in the commissioning of the project…”
So far, major components were delivered and ready for installation in the mine site, including SAG Mill, Atmospheric Leach Feed Thickeners and HAB Feeder and Primary Sizers.
Philex Mining said all the equipment packages had been awarded and are in different stages of manufacturing by various mining industry suppliers located in several countries.
Meanwhile, the construction of the tailings storage facility (TSF) is in full swing, reaching the 50 percent completion mark.
Underground protection tunnels and the TSF are on track for completion by the third quarter of 2025, while the process plant will be ready for commissioning in the last quarter of this year.
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