Philex profit down 24% despite record gold prices
Despite record gold prices, tycoon Manuel Pangilinan-led Philex Mining Corp. saw its net income drop by 24.2 percent to P481.8 million in the January to September period due to lower grade of extracted gold ore and weaker rate of metal recovery.
Revenues rose 2 percent to P6.28 billion, although its costs and expenses likewise increased by 2 percent to P5.5 billion.
Realized gold prices reached $2,874 per ounce, up 35.8 percent but copper prices dropped by 5.3 percent to $4.28 per pound.
Gold and copper output totaled 19,534 ounces and 14.3 million pounds, respectively, down by 17.1 percent and 3 percent.
Previous financial reports showed that Philex’s gold production was declining due to lower grades of gold ore. Metal recovery at the antiquated mill was also lower than expected.
But moving forward, Philex expects to improve production with the commissioning of its new Silangan mine and a new metal processing plant.
The company reported that Silangan copper and gold project in Surigao del Norte, now in the final stages of development, “is progressing steadily.”
“In a race, there are two important points: the start and the finish,” Philex Mining president and CEO Eulalio Austin Jr. said. “The runner needs a strong start and will exert his last force of energy closest to the finish line.”
“This is what we in Philex, particularly with the Silangan project, are doing now. We are now at the most critical part of the race, so we focus all our energy on winning at the finish line,” he added.
The Silangan project is seen on track to produce its first metal by the first quarter of 2026.
Austin said the mining project located in Tubod town would kick off even without an investor. Construction progress is now estimated at 70 percent.
However, he added that discussions were ongoing with potential local and foreign investors.
Philex Mining also continues to stockpile ore for the processing plant that will be commissioned by the end of January next year.
