Philex Mining Corporation (PSE: PX) opened 2026 with a weaker first-quarter performance but pointed to improving operations ahead, as restoration works at its Padcal mine progress and its long-delayed Silangan project moves closer to production.
For the quarter ended March 31, 2026, the company posted a core net loss of P281 million, reversing a P71 million core profit in the same period last year. On a consolidated basis, losses widened to P592 million, weighed down by lower output and a non-cash foreign exchange revaluation of dollar-denominated loans.
Operationally, Padcal bore the brunt of the setback. Ore throughput fell sharply due to a structural failure in the Secondary/Tertiary Crushing Plant, which disrupted production and cut milled tonnage by 42 percent. Gold and copper output remained modest at 2,227 ounces and 1,869 pounds, respectively, while revenues reached P1.08 billion against operating costs of Php1.42 billion.
Despite the slump in volume, higher global prices provided partial relief. Realized gold prices surged 92 percent year-on-year to USD4,960 per ounce, cushioning what would otherwise have been a deeper loss.
Management, however, framed the quarter as transitional rather than structural.
Engr. Eulalio Austin Jr., President and CEO of Philex Mining Corporation, said the company is emerging from a recovery phase at Padcal. “As this will be the first fully gold and copper oxide processing facility in the country we need to be conservative in the commissioning process,” he said, referring to the Silangan project’s ramp-up.
Restoration work at Padcal’s affected crushing section has been completed, with output expected to gradually recover through the year and normalize by May 2026. The company said it is positioning to benefit from sustained high metal prices once full throughput is restored.
The Silangan project, meanwhile, is nearing operational readiness. As of end-April, its underground mine and tailings storage facility are substantially complete, while commissioning of the processing plant is underway with contractor Ausenco Pty Ltd and project partner SMMCI.
First metal production is now targeted within 2026, marking a key milestone that could reshape Philex’s production profile and offset near-term volatility at Padcal.
