Philex Mining Corp., one of the largest gold and copper producers in Southeast Asia, said Thursday net income last year dropped to P1.02 billion from P1.8 billion in 2022 due to lower mine output.
Padcal, Philex’s only operating mine, produced a total milled tonnage of 6.85 million tons, down from 7.43 million tons for 2022. Gold output last year declined 22 percent to 37,784 tons while copper production dropped to 21.3 million pounds from 25.1 million tons in 2022.
Realized gold prices were at their highest levels last year, reaching USD1,964 per ounce in the fourth quarter while copper peaked at USD4.00 per pound in the first quarter before it settled at an average USD3.76 per pound for the remainder of the 2023.
Operating cost and expenses decreased by 6 percent to P6.67 billion due mainly to a 7.8 percent decline in milled tonnage.
Philex said its financial performance last year allowed its board to declare a cash dividend of P0.02 per common share aggregating to P116 million, to shareholders on record as of March 15. The cash dividend will be paid on March 27.
Philex and its unit, Silangan Mindanao Mining Co. Inc., recently completed the USD170 million loan needed for the Silangan Project, with the signing this week of the USD70 million syndicated credit facility. Silangan Project is expected to start commercial operation by first quarter of 2025.
Even with the impending operation of Silangan, Philex is still looking to further extend the mine life of Padcal by exploring nearby prospects.
“Our Padcal mine still has the potential,” said Eulalio B. Austin, Jr., Philex president and chief executive officer. “Thus, for this year, we will pursue our re-fleeting of critical equipment, continue optimizing the current ore body, as well as engage in relentless power optimization improvements and aggressive training of our employees. These are aside from further exploring the vicinity of Padcal Mine.”
Philex chairman Manuel V. Pangilinan said he is excited for the opening next year of Silangan mine, which could attract new investors and lenders to fund the faster ramp-up of the mine’s output. “Silangan will be the next big thing in the mining industry,” he said.
Philex, however, continues to pursue other business development activities to ride on the current trend towards green metals technology. “We hope to complete the evaluation of our nickel tenement in Zambales, and pursue other possible M&A prospects,” said Pangilinan.
