Philex Mining Corporation, a member of the MVP Group through First Pacific Co., reported a 42 percent fall in core net income to P410 million in the first half of 2024 from the P702 million earned in the same period last year due to dwindling ore reserves at its Padcal Mine.
In a disclosure to the Philippine Stock Exchange, the firm said it generated P305 million core net income and an EBITDA of P617 million for the second quarter of 2024 compared with the P314 million core net income and EBITDA of P553 million for the same period in 2023.
EBITDA means earnings before interest, taxes, depreciation, and amortization.
Average realized gold prices in the second quarter of 2024 were higher at $2,008 per ounce compared with the $1,937 per ounce in the same period last year but slightly lower than the $2,061 in the first quarter of 2024.
On the other hand, realized copper prices for the second quarter were at $4.45 per pound, slightly higher than the $4.00 in the first quarter of 2024 and the $3.82 per pound in the second quarter of 2023.
The second quarter of 2024 saw 1.69 million tons of milled material, a significant increase from the 1.59 million tons in the first quarter of the year.
Gold output for the second quarter of 2024 was also higher at 7,962 ounces compared with the 7,803 ounces of the first quarter.
Conversely, copper output for the second quarter of 2024 was 5.13 million pounds, compared to 4.67 million pounds in the first quarter of this year.
The total number of tons milled in the first semester of 2024 was 3.27 million, with gold output of 15,765 ounces and copper output of 9.80 million pounds.
Philex said outlook still remains positive with the continued development works at the Silangan Copper and Gold Project in Surigao Del Norte.
Mine development including the tunnel leading to the Boyongan Ore body is entering its final stages while construction of the tailings storage facility is in full swing.
The earthworks for the construction of the Process Plant are in progress while the procurement of the major and long lead equipment packages had been completed. The general contractor is set to commence the design and construction phase of the Process Plant.
“Acceleration to commercial operations of the Silangan Project will be foremost of our priorities, and we are targeting to have our first metal output before the end of 2025 ” said Philex President and CEO Eulalio Austin Jr.
He added that, “As soon as we reach the Boyongan Ore body during the end of this third quarter, we will start the block development works of the first production level, and thereafter, we will be seeing the first ore coming from the Boyongan Ore body.
“Construction works on other ancillary facilities such a ventilation shaft at the underground mine had been awarded to a mining contractor and are in progress.”