Philex Mining Corp. said Thursday net income in the first half dropped 5 percent to P 719 million from P757 million in the same period last year on lower production.
Philex said in a statement core net income reached P748 million in January to June from P 774 million a year earlier, while earnings before interest, taxes, depreciation and amortization increased 7 percent to P1.821 billion from P1.697 billion.
The company’s Padcal mine milled 4.138 million tons of ore in the six-month period, down from 4.704 million tons a year earlier, on low mine delivery brought about by equipment availability issues, limited capacities.
Philex said consolidated revenues declined to P4.756 billion from P4.788 billion, given the lower metal production that negated the impact of improved copper prices and favorable exchange rates.
Revenue from copper reached P2.007 billion, up from P1.795 billion as average realized copper prices improved to $2.65 per pound from $2.14 per pound last year. This offset lower copper production of 14.992 million pounds, compared to 17.341 million pounds last year.
Gold revenue declined to P2.710 billion from P2.955 million, as production went down to 43,251 ounces from 49,589 ounces. Realized gold prices also dropped to $1,258 per ounce this year from $1,263 an ounce in the same period last year.
Philex Mining said it spent P884 million in the form of taxes and other fees to the national and local governments and for social development and environmental management initiatives.
Taxes paid to the national and local governments reached P479 million while various fees and withholding taxes amounted P193 million.
Philex president and chief executive Eulalio Austin Jr. said the company was intensifying its adherence to global mining standards.
“In fact, we have tapped Australian and Canadian counsel to assist us in our efforts to align further with these countries’ mining, safety, and environmental standards. In addition, we are also spearheading efforts for the possibility of Canada’s Towards Sustainable Mining or TSM initiative being adopted by the local industry while continuing to be ISO 14001 [Environment Management System] and OSHAS 18001 [Occupational Health and Safety Standard] certified,” said Austin.
“This is in addition to the tailings storage facility designed by global experts and developed under international standards and the definitive feasibility study of the Silangan Project currently being finalized by our consultants from Australia,” said Austin.