Philex Mining H1 profit falls on lower gold output

PHILEX Mining Corp., the country's largest gold and copper producer, saw its revenues and profits fall in the first half of the year, due to lower gold output.

In a statement, Philex Mining said its consolidated net income in the first six months of the year fell 37% to P2.04 billion from P3.22 billion a year earlier, as its core net income declined and reduced exceptional gains.

Philex's core net income fell by 26% to P2.109 billion in the first half, as gold output fell by 19%. Philex Mining said gold production during the January to June period totaled 58,681 ounces, lower than the 72,784 ounces produced during the same period last year.

"Padcal produced lower gold output in the first half this year compared to last. This has resulted in a decline of our first semester revenues, which impacted our profits and
EBITDA. However, gold grade realized and gold output have improved starting in June and continued in July as access to better gold grade has opened. A better gold output in the second half compared with the first half is expected," said Philex Mining president and chief operating officer Eulalio Austin, Jr.

On the other hand, copper production remained steady at 18,340,282 pounds in the fist half, slightly down from 18,661,403 pounds from a year ago.

Austin said copper production will remain steady for the rest of the year.

"Starting June, we are beginning to see some recovery in grade and total output. We expect gold production volume to be better this second half, but will nonetheless be slightly lower in volume terms compared with last year. Copper volume should be maintained at levels with that of last year. Our hedging position vis-à-vis gold and copper prices is excellent, and should help mitigate anticipated slightly lower gold output for the entire year," Manuel V.Pangilinan, Philex chairman, said.

Operating revenue reached P7.47 billion, down 8% from last year's record-high P8.15 billion.

Core net profit dropped 26% to P2.11 billion from in the January to June period, from P2.84 billion during the same period last year. (ABS-CBNnews.com)

Category: For Business