Philex posts first quarter revenue at P4.021 billion

By Dexter A. See

TUBA, Benguet - Philex Mining Corp. recently posted a historic high first quarter revenue of P4.021 billion, 4 percent  higher than the P3.864 billion recorded in the same period last year on the strength of gold and copper prices in the global market.

                Lower grade and metal recoveries at its Padcal Mine however kept Core Net Income steady at about P1.330 billion during the first quarter of this year.

                Eulalio B. Austin, Jr., Philex president and chief operating officer, said reported Net Income was 3% lower at P1.268 billion from P1.310 billion last year.

                “Metal prices continued to be strong in the three months ended March 31, as revenue from gold increased to P2.177 billion from P2.099 billion, while revenue from copper likewise increased to P1.796 billion from P1.651 billion,” Austin, an engineer said.

                 “Average realized metal prices for the period were at $1,678 per ounce gold and $4.26 per pound copper on 29,153 ounces of gold and 9,085,371 pounds of copper produced.”

            Last year, the Philex president pointed out average realized metal prices were at $1,315 per ounce gold and $4.13 per pound copper on 37,003 ounces of gold and 9,110,472 pounds of copper produced.

                Engineer Libby R. Ricafort, Philex vice president and resident manager, disclosed tonnage milled in Padcal increased 4% to 2.356 million tonnes for the first three months from 2.267 million tonnes in 2011, but copper concentrate produced was 2% lower at 16,478 dry metric tons as ore grades were lower at 0.494 grams gold per tonne and 0.219% copper this period from 0.613 grams gold per tonne and 0.221% copper in 2011, and metal recoveries decreased to 77.91% for gold and 79.92% for copper, from 82.86% and 82.45%, respectively.

                 He cited income from operations decreased 5% as higher production in Padcal and higher corporate overhead increased operating costs and expenses to P1.944 billion from P1.645 billion over the same period last year.

                For social development and management programs (SDMP) at the Padcal mine, Philex Mining spent a total of P9.17 million for the host and neighboring communities in the first three months. Of this amount, 75% was spent for education, 19% for livelihood and public infrastructure and 6% for health programs.

                The Philex resident manager revealed environmental protection programs during the first quarter totaled P50.58 million or 19% of the P261.21 million allotted for 2012 for its nursery operations, plantation operation and protection, and construction of fireline/firebreak, as well as maintenance and operations of the active and decommissioned tailings ponds.

Philex Mining Chairman and Chief Executive Officer Manuel V. Pangilinan said the Company’s investment in its Silangan Project is necessary for the long-term development of the Company.

                “This is the time to sow. This is the time to put in significant investments in the Silangan Project – investments for the development of the mine, the capability development of the organization for its eventual operations, the technology and equipment to conserve the environment as well as investments into the long-term development of our host and neighboring communities in Surigao del Norte,” he added.