Monday, August 10, 2020

Philex gets net loss recovery in H1

 

By Eireene Jairee Gomez August 4, 2020

https://www.manilatimes.net/2020/08/04/business/companies/philex-gets-net-loss-recovery-in-h1/750327/

 

PHILEX Mining Corp. posted a core net income of P402 million in the first semester of 2020, a solid turnaround from a net loss of P19 million recorded in the same period last year.

In a disclosure on Monday, the Pangilinan-led mining firm said improvements in the mine and mill operations paved the way for the company’s core net income to reach P300 million in the April to June period, in addition to P103million in core earnings it recorded in the first quarter.

Philex Mining continued to generate higher tonnage since the first quarter of the year. For the second quarter, total tonnage milled totaled 2.002 million tons, a 1-percent increase from 1.973 million tons year-on-year. This brings the firm’s total tonnage milled at 3.971 million tons in the first six months of 2020, up by 4 percent from 3.805 million tons in the same period in 2019.

The company said the continued improvement in the execution of the mining plan and mill operations resulted to higher tonnage and better blended metal grades. Gold production for January to June reached 28,332 ounces (oz), a 20-percent increase from 23,675 oz last year. Likewise, copper output rose by 13 percent to 13.541 million pounds (lbs) from 12.007 million lbs a year ago.

During the second quarter, gold output was at 14,173 oz versus 13,182 oz while copper output went up by 8 percent to 6.803 million lbs from 6.280 million lbs last year.

Operating revenues during the period six-month period was 19 percent higher at P3.680 billion as compared to P3.089 billion year-on-year as a result of significantly favorable realized gold prices though tempered by declining realized copper prices, and lower foreign exchange rates.

In the second quarter alone, operating revenues hit P1.967 billion, a 22-percent increment from the previous P1.613 billion.

Meanwhile, earning before interest, tax, depreciation and amortization during the first half of the year rose by 71 percent to P1.127 billion from P660 million in 2019.

As an export-oriented company, Philex was allowed to remain operational during the enhanced community quarantine in accordance with the guidelines of the government Inter-Agency Task Force for the Management of Emerging Infectious Diseases.

“We have adjusted our supply chain model based on new normal in order to mitigate the risk of possible disruptions in the flow of the materials and supplies needed in our mine and mill operations. We also have put in place adequate health protocols to protect our employees, both in Padcal mine and at the head office, as they continue to perform their day to day work in the office, underground mining and mill operations”, said Philex Mining President and Chief Executive Officer Eulalio Austin Jr.

Philex Mining Chairman Manny Pangilinan was optimistic the company is heading towards a better full-year performance in 2020 compared with 2019 “provided we are able to maintain our production volume and improve mining efficiencies.”

Philex Mining and its subsidiaries are engaged in large-scale exploration, development, and utilization of mineral resources. Its Padcal mine is one of the oldest operating mines in the Philippines.

Shares of Philex Mining rose 5 centavos or 1.57 percent to close at P3.24 each om Monday.

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