Philex Mining Corp. on Thursday reported an attributable net income of P314.56 million for the second quarter, down 55.62% from P708.85 million a year earlier, amid lower operating revenues and higher expenses.
The listed gold and copper producer said that its core net income stood at P314 million, a decrease of 52% from P657 million in the same period last year, based on its unaudited financial results.
Earnings before interest, taxes, depreciation, and amortization were at P553 million, lower than the P1.17 billion previously, it said.
The company’s operating revenues went down by 17% to P2.05 billion from P2.49 billion in the previous year.
“Operating costs and expenses for 2Q2023 at P1.701 billion was higher than the same period in 2Q2022 at P1.663 billion, despite lower tonnage milled,” the company said.
It said that higher power costs continue to increase operating costs and expenses despite lower production levels.
Philex milled a total of 1.83 million tons during the second quarter, down 2% from the 1.86 million tons in the same period last year.
“Slight improvement in gold prices continue to mitigate the negative impact of the softening copper prices when compared to the same period in 2022,” Philex said.
During the period, realized gold price rose by 6% to $1,937 per ounce while copper price dipped by 7% to $3.82 per pound.
Ore grades for gold and copper went down by 14% and 7% year on year in the second quarter, respectively.
Gold output decreased by 21% year on year to 10,300 ounces while copper output was also down by 13% to 5.64 million pounds.
Meanwhile, the company’s first-half attributable net income decreased by 47.40% to P704.14 million from P1.40 billion last year.
“Cautious optimism is still the name of the game,” said Philex President and Chief Executive Officer Eulalio B. Austin, Jr. in a media release.
“The first half of the year was challenging, no doubt, but we are still confident that, with the Silangan Project and other prospects in the pipeline, the situation would improve. We are all geared up for mining opportunities moving forward,” he said.
Philex reported a core net income of P702 million, down from P1.33 billion in the same period last year.
Prices for gold and copper during the period ending in June averaged $1,924 per ounce and $3.91 per pound, respectively.
The total production of gold dropped by 19% to 20,361 ounces while copper output also decreased by 12% to 11.173 million pounds when compared to the same period last year.
Philex said that it is in the final stage of raising the needed funding through negotiation and documentation for its Silangan copper-gold project in Surigao del Norte.
It is almost done in securing the funding of the project from debt syndication led by BDO Capital and Invesment Corp., targeting to raise a minimum of $100 million.
“This new credit facility completes the full funding requirement for the Silangan Project after the stock rights offering (SRO) last year and the capital infusion from the Company out of its cash reserves,” it said.
Philex Mining is a holding firm with a business interest in mining, energy, and hydrocarbon. It primarily engages in large-scale exploration, development, and utilization of mineral resources.
At the stock market on Thursday, Philex Mining shares dipped 0.90% to P2.97 apiece. — Sheldeen Joy Talavera
