Philex Mining Corporation, one of the oldest and largest gold and copper producers in Southeast Asia, said Friday core net income in the third quarter dropped 22 percent to P163 million as output from Padcal mine continued to decline.
Net income in the nine months through September dropped to P864 million, almost half the P1.54 billion recorded in the same period of 2022.
Philex said gold and copper prices stood at USD1,927 per ounce and USD3.73 per pound, respectively. Gold and copper prices were higher at 13 percent and 3 percent, respectively, compared with prices registered in the third quarter of last year.
The company milled a total of 1.693 million tons during the third quarter, down 9.6 percent year-on-year. Third-quarter gold and copper output total 8,775 ounces and 5.22 million pounds, respectively. The nine-month total was 5.23 million tons compared with 5.55 million tons in the year-earlier period.
Operating costs and expenses for the third quarter was down 9.2 percent to P1.63 billion due to the lower tonnage milled and continued implementation of efficiency measures that mitigated the increases in the purchase costs of materials and supplies, as well as equipment parts and repairs. Power costs continued to rise despite lower production level.
Development work continued at the Silangan project, the copper and gold mine that will replace Padcal, who mine life has been extended several times. Philex said clearing works and access road to the tailings storage facility area are nearing completion with the issuance of the permit by Sison, a town in Surigao del Norte for the construction of the tailings dam.
Philex remains optimistic of its prospect despite the challenges faced in the first nine months of the year, especially with the new mining opportunities that opened for the company.
Philex president and chief executive officer Eulalio Austin said the company, aside from exploring the vicinity of Padcal mine, is also studying the viability of exhausting reserves in the Padcal under the current drain tunnel, which could again extend Padcal’s mine life beyond 2027.
“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. “Meanwhile at Silangan, we are progressing with the driving of the decline to access the ore body which we expect to reach by the second half of 2024.”
Philex chairman Manuel V. Pangilinan said the company is also looking at expanding 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 in well-positioned for this opportunity.” Pangilinan said.
