Philex Mining posts net loss in third quarter

Philex Mining Corp. on Wednesday said the suspension of operations at its Padcal mine in Benguet has curbed its earnings potential, citing a net loss of P1.57 million in the third quarter of the year based on unaudited financial and operating results.   The voluntary suspension of Padcal operations resulted in lower operating revenues of P1.64 billion in July to September, the company said in a disclosure to the Philippine Stock Exchange.   The drop in operations income to P215.32 million and the cost of remedying the broken waste pond were mitigated by hedging gains from the pre-termination of outstanding hedge contracts, the company said.   “Both financial and operating results for this quarter are better than what has been anticipated, given the unexpected setback in our Padcal operations,” said chairman and CEO Manuel V. Pangilinan.   “There were struggles, but I am pleased that the company responded positively to the accident. I have always believed that the more than 2,200-strong Philex employees would respond to the challenge with courage and unity – as has been the mark of our employee corps historically,” he added.   Unaudited financial and operating results for the first nine months of 2012 showed a net income of P2.03 billion and a core net income of P2.26 billion.   Philex Mining stopped mine operations on Aug. 3 after the tailings pond in Padcal started overflowing and its pipe cracked, spilling waste material beyond its containment facility.   Total ore milled in the third quarter stood at 880,808 dry metric tons (DMT), from which 3.97 million pounds of copper, 12,616 ounces of gold and 11,539 ounces of silver was produced last July. Earnings before interest, taxes, depreciation and amortization or EBITDA totaled P3.58 billion or an EBITDA per share of P0.72. Earnings per share in the nine months to September amounted to P0.43 and core earnings per share reached P0.46. — VS, GMA News