Philex posts record Q1 sales

MANILA, Philippines—Philex Mining Corp. posted a record-high first-quarter revenue on strong gold and copper prices in the global market, but profit was pulled down by higher expenses and lower grade and metal recoveries.

Metal sales reached P4.021 billion in the first quarter of 2012, up by 4 percent from P3.864 billion a year ago.

However, lower-grade and metal recoveries at the Padcal Mine in Benguet kept core income at about P1.33 billion. Reported net income was 3 percent lower at P1.268 billion from P1.31 billion due to higher costs and expenses.

Revenue from gold grew to P2.177 billion from P2.099 billion while revenue from copper was up to P1.796 billion from P1.651 billion. Average realized metal prices for the period were $1,678 per ounce of gold and $4.26 per pound of copper on 29,153 ounces of gold and 9,085,371 pounds of copper produced.

Tonnage milled in Padcal rose 4 percent to 2.356 million tons of raw ore in the first quarter from 2.267 million tons in 2011. However, copper concentrate produced was 2 percent lower at 16,478 dry metric tons as ore grades were lower at 0.494 grams gold per ton and 0.219 percent copper from 0.613 grams gold per ton and 0.221 percent copper in 2011. Metal recoveries decreased to 77.91 percent for gold and 79.92 percent for copper, from 82.86 percent and 82.45 percent, respectively.

Income from operations fell by 5 percent as higher production in Padcal and higher corporate overhead increased operating costs and expenses to P1.944 billion from P1.645 billion a year ago.—Riza T. Olchondra