Philex Mining's Net Core Net Income For 2021 Increases By 118% To Php2.533 Billion

Philex Mining Corporation (the “Company” or “Philex”), one of the oldest and largest gold and copper producers in Southeast Asia, and a leader in right and principled mining added Php668 million of Core Net Income in 4Q2021 to its Php1.865 billion Core Net Income for the first nine months ended September 30, 2021. Thus, full-year Core Net Income rose 118% to Php2.533 billion compared with Php1.162 billion for the full year of 2020.

Photo Insert: Philex Mining Corporation is one of the oldest and largest gold and copper producers in Southeast Asia.

Favorable and sustained higher levels of realized prices for Gold and Copper resulted in higher operating revenues in 2021, registering a healthy 25% increase over the year 2020. Operating revenues reached Php9.797 billion in 2021 from Php7.834 billion in 2020. Realized Gold prices were at their highest level in 4Q2021 reaching $1,783 per ounce, while Copper reached $4.44 per pound in October 2021.

Operating costs were only slightly elevated by 4.8% to Php6.598 billion from Php6.298 billion in 2020 due to the increase in the cost of materials and supplies, partly offset by lower power cost and non-cash charges.

The sustained prices of Gold and Copper in the global market are providing Philex a continuing window of opportunity to optimize the mineable reserves and metal output. Profitability and liquidity since 2020 have been on a positive trend and have materially enhanced the Company’s profitability and financial condition, allowing the Company to expedite the launching of the development of the Silangan project under its In Phase Mine Plan.

At the same time, studies are underway to explore and determine the feasibility of the mineable resources and/or reserves surrounding the Padcal mine, whilst the Gold and Copper prices are at their current high levels.

The Company has been working diligently with all stakeholders on implementing the fundraising plan which paves the way for the timely development and the start of commercial operations of the Silangan project by early 2025.

The initial capital needed under the In Phase Mine Plan is US$224 million or about Php11.2 billion, to be funded by a combination of proceeds from a stock rights offer, from the cash reserves of Philex, and possibly some incremental debt at the Silangan level. The Company has appointed BDO Capital and Investment Corporation as its issue manager and lead underwriter for the fundraising.

“No doubt, 2021 was a blessing for us considering the high metal prices for Copper & Gold that even with the marginal grades of ore that we are mining, we continue working on our business continuity plans,” according to Philex president and CEO Eulalio B. Austin, Jr. “Furthermore, we were also able to successfully deal with the deadly Covid-19 virus because of our strict and constant adherence to health protocols and our mass vaccination program. Consequently, we have had no disruption in our operation for the year.”

“The year 2021 also brought hope to the mining industry with significant regulatory changes on the horizon, such as the suspension of the ban on new mining agreements and lifting of the ban on open-pit mining method. These developments augur well for the mining industry come 2022—a light at the end of the tunnel, so to speak.”

“We will continue our relentless drive to improve our operations, and are now looking at new investment opportunities,” whilst prolonging the life of our Padcal mine, said Philex Chairman Manny V. Pangilinan. The job security and welfare of our employees and their dependents are still our primordial concern.”

“Silangan will be an exciting project for us in 2022— it could ensure that our business continues for a long time to come. We look forward this year with a fair degree of optimism, given the buoyant prices of commodities in general, and of metal prices in particular, driven by global geopolitical and supply factors,” concluded Chairman Pangilinan.

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