Philex Mining Corp. swung back to profitability in the second quarter as its flagship Padcal mine returned to full operating strength after a major rehabilitation, allowing the company to capitalize on still-elevated gold and copper prices.
The listed miner reported a consolidated net income of P392 million for the April-to-June period, a sharp turnaround from the P592 million net loss in the first quarter and more than double the P171 million earned a year earlier.
Core net income reached P492 million, reversing a P281 million core loss in the previous quarter and underscoring the strength of Philex’s underlying operations.
The turnaround came after the successful rehabilitation of Padcal’s secondary and tertiary crushing plant restored milling capacity. Ore processed jumped 68 percent quarter-on-quarter to 1.56 million tonnes, boosting gold production by 80 percent to 4,011 ounces and copper output by 81 percent to 3.39 million pounds.
While gold prices eased from the record highs seen in the first quarter, they remained historically elevated at an average realized price of USD4,136 per ounce, up 65 percent from a year earlier. Copper prices also strengthened to USD6.23 per pound, providing another earnings tailwind.
The stronger operations more than doubled net revenues to P2.42 billion from the previous quarter, while EBITDA rebounded to P974 million from a negative P129 million in the first three months of the year.
For the first half, however, Philex still posted a reported net loss of P200 million after unrealized foreign exchange losses on its U.S. dollar-denominated loans, particularly those tied to the Silangan Project, offset operating gains. Excluding those accounting losses, first-half core net income climbed 56 percent to P212 million.
The second-quarter rebound suggests the operational disruptions that weighed on earnings earlier this year have largely been resolved. With Padcal back on track and precious and base metal prices remaining supportive, management expects the mine’s improved momentum to carry through the rest of 2026.
Meanwhile, the long-awaited Silangan Project continues to advance toward a key milestone. Philex said contractor EEI Corp. has begun progressively turning over completed sections of the processing plant, allowing commissioning activities with Australian engineering firm Ausenco Pty. Ltd. ahead of the project’s targeted completion in the fourth quarter.
The story is increasingly becoming a two-track narrative for Philex. Padcal is once again generating cash, while Silangan inches closer to becoming Philex’s next major growth engine.
