Philex earnings down 50% in Q1

Louise Maureen Simeon (The Philippine Star) - May 22, 2020 - 12:00am
https://www.philstar.com/business/2020/05/22/2015584/philex-earnings-down-50-q1

MANILA, Philippines — Pangilinan-led Philex Mining Corp. reported a net income of P102 million in the first quarter, down 50 percent despite higher revenues and improved world market prices.

In a regulatory filing, Philex said last year’s earnings were inclusive of a one-time non-recurring net gain amounting to P318 million.

Revenues went up 16 percent to P1.71 billion, mainly due to higher tonnage milled, better blended metal grades, favorable realized gold prices. The growth, however, was tempered by copper prices and lower foreign exchange rates.

The Padcal mine milled 1.97 million metric tons of ore, up seven percent.

First quarter gold output was also higher by 35 percent to 14,159 ounces while copper production also increased by 18 percent to 6.74 million pounds.

Total cost and expenses slightly decreased to P1.55 billion amid lower cost of power, materials and supplies usage.

As an export-oriented company, Philex was allowed to remain operational during the enhanced community quarantine with Padcal continuing to function in strict compliance with the applicable government mandated operating guidelines.

The Padcal mine camp was placed on lockdown.

Philex was also affected by the limited disruption in its supply chain during the first two weeks of the implementation of lockdown in Metro Manila and Calabarzon, where most of the firm’s supplies come from.

“The full impact of COVID19 to the medium term and long term business operations is yet to be seen as the pandemic is continuously shaping the new normal for all businesses, including that of Philex,” said Philex president and CEO Eulalio Austin.