Philex Mining Corporation, the country’s top gold producer, reported a 116 percent jump in core net income to P1.87 billion in the first nine months of 2021 despite the challenges posed by the Covid-19 pandemic.
In a disclosure to the Philippine Stock Exchange, the firm attributed the surge in earnings to favorable metal prices, sustained metal output and efficient deployment of operating costs and expenses.
Philex said production and favorable metal prices for gold and copper have been sustained since the first quarter of 2021.
Reported net income reached P1.88 billion in the first nine months of the year, a 105 percent increase from the same period in 2020.
The company generated higher tonnage in the third quarter of the year. For 3Q 2021, total tonnage milled was at 2.006 million tonnes slightly higher compared to 1.985 million tonnes in 3Q 2020 and 1.943 million tonnes of 2Q 2021.
Revenues rose 22 percent to P7.74 billion in the first nine months of 2021 from the P6.33 billion generated in the same period last year.
This is due to the significant increase in the realized price of copper since the third quarter of 2020 resulting in a higher contribution of revenues from copper at 52 percent of total revenues from 40 percent in the first nine months of 2020.
On the other hand, revenues contribution from gold declined from 59 percent in to 47 percent in the first nine months of 2021 mainly due to the slightly lower gold output, from 43,136 ounces to 41,295 ounces.
For the nine months period ended September 30,2021, the Company recorded its share in the net losses of its associates amounting to P510 million, inclusive of the Company’s share in the PXP Energy Corporation provision for impairment of assets and goodwill related to Peru block Z-38, net of proceeds from the settlement agreement with third party.
As a result of the extension of the Padcal mine life from December 31,2022 to December 31,2024, the Company recognized a net reversal of the previously recorded impairment provision in its mining assets amounting to P374 million.
The extended Life of Mine from December, 2022 to December, 2024 will ensure the continuous employment of 1,831 Padcal employees and support the social development of the Host Local Government Units (LGU) and neighboring communities especially in this time of COVID- 19 Pandemic.
It will also give more time for the Company to bring the Silangan Project to development and commissioning stages.
“In response to this global trend of strong demand and strong metal prices, as well as responding to the Government challenge for the revitalization of the mining industry, Philex will keep improving on how we do things and undertake innovative initiatives related to the promotion of right and principled mining,” according to Philex President and CEO Eulalio B. Austin Jr.
He added that, “The pursuit for excellence is a continuous journey and we have to keep raising the bar.”
“With higher metal prices and a better economic outlook for the mining industry moving forward, we can maintain the momentum of last year’s exemplary performance into this year, notwithstanding the pandemic and the challenges we have faced in our operations,” said Philex Chairman Manuel V. Pangilinan.
He noted that, “Time and again, the women and men of Philex have proven their resilience during tough times. With the extension of Padcal mine life for another two years, the prospect of a viable financial package for our Silangan project, and the rollout of our vaccination program for our employees and their dependents, it looks like the full year 2021 will produce excellent results for your company.”