MANILA, Oct. 29 (PNA) — Pangilinan-led Philex Mining Corp. expects to book a profit of Php1 billion this year on improving gold and copper production.
Philex reported a net income of Php950.6 million in the first three quarters of the year, lower by 39 percent from Php1.45 billion last year, due to generally lower ore grades and depressed metal prices.
In a press briefing, Philex Mining Chairman Manuel Pangilinan said the company continues its exploration work in the Padcal mine in Benguet that can offer additional mineral resources.
The company received the permanent lifting of the suspension order from the Mines and Geosciences Bureau (MGB) in August this year, thus granting the full operations of its gold and copper production at Padcal mine amid the tailings spill incident two years ago.
“We believe that more needs to be done moving forward to curtail the impact of low grades and weak metal prices on our bottomline. In addition, we are extensively exploring areas within and outside Padcal to extend the mine’s life beyond 2020,” said company president and chief executive officer Eulalio B. Austin Jr.
Pangilinan said the Silangan project in Surigao, the company’s next big prospective mine, is also proceeding as planned after the pre-feasibility study confirmed the project’s viability.
“We are on-track with completing the bankable or definitive feasibility study (DFS) for Silangan to de-risk the project and further increase our confidence level,” said Silangan Mindanao Mining Company, Inc. president and chief operating officer Yulo Perez.
”We expect the DFS to be completed by mid-next year and are also looking forward to secure the remaining regulatory approvals to commence production,” Perez said.
Philex has earmarked Php1.5 billion in capital expenditures for the Padcal copper and gold project, and Php4 billion for the Silangan copper and gold project.
Meanwhile, the company also reported a net income of Php350.1 million in July to September, up by five percent from Php333 million in the second quarter.
It attributed the higher income to the impact of cost reduction and gain on the sale of the Pasig property, partially offset by write-down of some assets and unrealized foreign exchange losses.
Philex said its consolidated revenues reached Php2.60 billion in the third quarter from Php2.87 billion in the previous quarter, as weak metal prices prevailed and offset the slight improvement in gold output. (PNA)