Philex Mining: Bottom line sagged on weak metals prices

Philex Mining Corp. on Thursday reported a slup in bottom line during the first nine months of 2015 on the back of depressed metals prices.

 

In a filing with the local bourse, the miner said its core net income was down 9.95 percent to P811.470 million in January to September from P901.150 million a year earlier.

 

Its net income dropped 20.46 percent to P756.031 million from P950.582 million in the same comparable period.

 

As a result, its net income attributable to equity holders settled at P851 million or 29.37 percent lower compared with P1.205 billion. The miner noted last year's figures were boosted by the gain from the sale of a property in Pasig  sometime in July.

 

Total consolidated revenues amounted to P7.292 billion, down from P8.378 billion, following a decline in the average realized prices of gold and copper.

 

“These price levels were the lowest recorded in the last five years and touched their lowest points in August 2015,” the company said.

 

Revenues from its petroleum operations also dropped on the back of lower output and a slump in average crude prices.

 

Philex said it reduced the operating costs and expenses to P5.612 billion or 12.72 percent lower from P6.430 billion.

 

“Specifically, cash production costs declined by 12 percent to P3.525 billion while general and administrative expenses decreased by 28 percent to P533.2 million,” it said.

 

The miner settled P21.8 million worth of debt, lowering its total obligations to P3.482 billion as of end-September from P4.308 billion at the end of 2014.

 

According to Philex, a study about the company’s mineral resource identified an additional 20 million tons of ore reserve that will extend the mine life of Padcal in Benguet by two more years to 2022.

 

“The validation of additional reserves... is indeed a very welcome development for the company. Aside from extending Padcal’s life-of-mine, the incremental reserves also enhance the company’s value and provide us with more flexibility before the Silangan project comes on stream,” Philex President and CEO Eulalio B. Austin Jr. said. – Jon Viktor Cabuenas/VS, GMA News