TUBA, Benguet – Philex Mining Corporation reported a 6 percent drop in its income for the first semester of this year with a total of P565 million net profit compared to the same period last year that registered P600 million gain following the continuous drop in the global metal prices.
Engr. Eulalio B. Austin, jr., Philex president and chief executive officer, noted that net income attributable to equity holders of the parent company was at P607 million (1H2014:P627 million) while core not income amounted to P520 million (1H2014:P559 million).
He said Philex’s Padcal mines operated for 178 days in the first six months of this year and milled over 4.47 million tons of ore.
The Philex official revealed the tonnage translated to 53,689 ounces of gold produce compared to the 52,286 ounces produced during the same period last year as grades improved to 0.442 grams per ton compared to the previous 0.436 grams per ton. At the same time, Austin disclosed copper output reached 16.9 million pounds this year compared to the 18.2 million pounds produced during the same period last year with copper grades slightly lower at 0.206 percent compared to 0.218 percent in the same period last year.
According to him, the produce resulted to an income of P2.84 billion for gold this year compared to last year’s P3.088 billion during the same period last year and P1.870 billion for copper compared to the P2.453 billion income for copper last year as averaged realized prices for gold were lower by 11 percent at $1,190 per ounce compared to $1,341 per ounce and while copper prices were lower by 16 percent at $2.61 per pound compared to $3.09 per pound last year.
Austin cited the aforesaid price levels were the lowest recorded in the last five years but the company remains optimistic that the global mineral prices will stabilize in the coming months.
He claimed revenues from petroleum and other sources, which were affected by lower output and volatility in world crude prices, fell to P83.5 million compared to the P197.8 million while revenues from silver amounted to P37.6 million compared to the P43 million last year
The Philex executive added total consolidated revenues for the same period amounted to P4.886 billion compared to the P5.782 billion for the similar period last year.
He explained total cost and expenses as the externally environment remained extremely challenging, the company remained relentless in managing its cost and reducing its expenses across all fronts and as a result, consolidated operating cost and expenses in the first half of this year were 17 percent lower year-on-year at P3.728 billion compared to P4.468 billion last year.
Specifically, he claimed cost went down 14 percent to P2.335 billion compared to P2.706 billion last year while general and administrative expenses decreased 33 percent to P363.8 million compared to P540 million last year.
