2 weeks ago
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Despite higher gold and copper prices, Pangilinan-led Philex Mining Corporation reported a 20 percent drop in net income to ₱810 million last year from ₱1.02 billion in 2023 due to higher costs and lower output from the nearly-depleted Padcal mine.
In a disclosure to the Philippine Stock Exchange, the firm said core net income slid by 22 percent to ₱746 million in 2024 from ₱963 million in the previous year. Fourth quarter net income rose to ₱136 million in 2024 from ₱98 million in 2023.
Gold and copper prices were at relative higher levels throughout the year, compared with 2023, while foreign exchange rate continued to improve through the fourth quarter of 2024.
Operating revenues increased six percent to ₱8.183 billion in 2024 from ₱7.73 billion in 2023. Operating revenues in the fourth quarter of 2024 at ₱2.08 billion were also higher compared with ₱1.77 billion in the same period of 2023.
However, operating costs and expenses inched up by a higher nine percent to ₱7.3 billion for the year 2024 as a result of elevated prices of materials and supplies.
Realized gold prices reached $2,419 per ounce in the fourth quarter, while copper peaked at $4.57 per pound in the third quarter before settling to an average $4.32 per pound for the remainder of the year.
Tonnage milled for the fourth quarter 2024 was at 1.77 million tons, higher than the 1.63 million tons in the same period of 2023. Total tonnage milled in 2024 reached 6.81 million tons, slightly lower than the 6.85 million tons for 2023.
Philex’s performance in 2024 allowed its Board of Directors to declare a cash dividend of two centavos (₱0.02) per common share amounting to P116 million, to shareholders on record as of March 12, 2025, which will be paid on March 24, 2025.
The firm said the development of its Silangan Project in Surigao del Norte registered a major milestone with the underground main access decline reaching the Santa Barbara 1 ore body ( formerly Boyongan ore body), and marking 7.5 million uninterrupted manhours without LTA ( Loss Time Accident) as of January 18, 2025.
Major components of long lead equipment packages for the Process Plant such as SAG Mill, Atmospheric Leach Feed Thickeners and HAB Feeder and Primary Sizers were delivered on site ready for installation.
All the equipment packages had been awarded and are in different stages of manufacturing by various mining industry suppliers located in several countries.
The construction of the Tailings Storage Facility (TSF) is in full swing passing the 50 percent completion mark. Underground production tunnels and the TSF are on track to be completed by the third quarter this year, while the Process Plant will be ready for commissioning in the fourth quarter of 2025.
“In 2025, we will navigate the challenges of operating an old yet viable mine like Padcal and commissioning a new mine like Silangan,” said Philex president and CEO Eulalio B. Austin Jr.
He added that, “Padcal still has the potential, and we are looking at pulling out all the stops, so to speak, to ensure its survival in its projected 2028 mine life and even beyond.”
“For Silangan, we will protect the showstoppers to avoid any further delay in the commissioning of the project, and we are thankful to our shareholders, lenders, suppliers, consultants, and the national and local government units for their confidence and continued support to make Silangan Project operational by the first quarter of 2026, marking a new era for Philex and the Philippine mining industry,” Austin added.
He noted that, “It is imperative that Silangan be ushered into production before the expected mine life of Padcal comes to a close.”
