Philex gets foreign partner for Silangan
Philex Mining Corp. has found a foreign investor for the Silangan mine project in Surigao del Norte province ahead of its much-awaited commercial operations next year.
Billionaire Manuel V. Pangilinan, chair of Philex, told reporters in a recent interview that the unnamed investor had opted for a minority stake in the copper and gold project, although he did not disclose the exact shareholding.
According to Pangilinan, the investor was interested in Silangan since it was “newer and had high grade ore.”
He did not provide other details about the transaction and remained mum on whether the deal had been closed.
Hong Kong-listed First Pacific Co. Ltd., which was cofounded by Pangilinan, currently holds a 13.52-percent stake in Philex.
The listed mining firm’s share price has ballooned by 153.76 percent to P7.08 since the beginning of the year. Month-to-date, the price has surged by 53.58 percent.
Pangilinan’s confirmation comes more than three years after Silangan Mindanao Mining Corp., a wholly owned subsidiary of Philex, said it was open to both foreign and local investors, especially if they would add “strategic value” to the project.
Last November, Philex said the Silangan project was on track to produce its first metal output by February 2026. Commercial operation is scheduled for the first quarter of next year.
Philex president and CEO Eulalio Austin Jr. earlier said they needed to fast-track the development of the project “as conditions now are just right” due to high metal prices.
Net income declines
Higher operating expenses outweighed Philex’s gains from favorable metal prices and foreign exchange rates, with its net income declining by 20 percent to P810.2 million last year.
Revenues also dropped by 6 percent to P8.18 billion, while costs and expenses climbed by a tenth to P7.23 billion due to high prices of materials and supplies.
This year, Austin said they would focus on commissioning Silangan and “navigating the challenges” of operating older mines like Padcal in Benguet province.
Philex has been raising additional funds to develop the first phase of the mine that covers the Boyongan ore deposit. In February 2024, Philex secured a $70-million loan from Philippine National Bank, Philippine Bank of Communications and Security Bank.
Peter Garnace, equity research analyst at Unicapital Securities Inc., said Boyongan had estimated minable reserves of 81 million tons, which contained 993 million pounds of recoverable copper and 2.8 million ounces of gold.
“Furthermore, as earlier noted by [Philex] management, they are also considering raising additional funds to develop phase 2 of Silangan prior to the commencement of commercial operations of phase 1,” Garnace told the Inquirer.
