Philex Mining Corporation reported a 17 percent drop in core net income to P1.54 billion in the first nine months of 2022 mainly because its third quarter earnings fell by 71 percent.

In a disclosure to the Philippine Stock Exchange, Philex said the lower profit in the first nine months is “attributable to lower copper price, decreased metal output, and higher power rates―despite the efficient deployment of operating costs and expenses.”

The firm said its core net income amounted to P210 million for the third quarter of this year from P716 million in the same period of 2021, mainly due to lower copper prices, ameliorated with favorable foreign exchange rates and managed operating expenses.

The third quarter profit is less than a third of the P676 million achieved in the first quarter of 2022 and the P657 million posted in the second quarter of the year.

Earnings before interest, taxes, depreciation and amortization was lower by seven percent at P2.96 billion for the first nine months of 2022 compared to the same period last year.

Reported net income for the third quarter of 2022 is P240 million, a 67 percent decrease over the same period last year, while reported net income for the nine month reached P1.64 billion, a 13 percent decrease from 2021.

For the third quarter of 2022, total tonnage milled was at 1.87 million tons, lower compared to the 2.01 million tons in the same period of 2021.

Gold output at 12,144 ounces in the third quarter of 2022 was lower when compared to the 14,270 ounces of the same quarter in 2021 on account of lower tonnage milled and slightly lower gold grade.

On the other hand, copper ore grades remained higher and improved in the third quarter of 2022 when compared with the third quarter last year.

The improvement in the copper ore grades mitigated the impact of lower tonnage milled to total copper output in the third quarter of 2022.

Revenues for the third quarter of 2022 stood at P2.25 billion and were 15 percent lower than revenues of the same period of the same quarter in 2021 on account of lower gold and copper prices.

However, the favorable exchange rate effect reduced the negative impact to the revenues in the third quarter of 2022 when compared with previous periods.

For the nine month period, revenues at P7.68 billion was slightly lower from revenues of P7.74 billion in the same period last year. Net revenues, after smelting charges were P2.04 billion for the third quarter and P7.06 billion for the first nine monts of 2022.

“In spite of the current concerns worldwide, particularly on the high levels of global inflation, the volatility of currencies and of metal prices, we maintain a positive outlook,” said Philex President and CEO Eulalio B. Austin Jr.

He added that this is because “copper, one of our major products, has been identified as a green metal necessary for the global fight against climate change.”

Philex Chairman Manuel V. Pangilinan said “I trust, that on the basis of our sustained performance, 2022 will still be a relatively good year for the Company and for the industry.”