GOLD producer Philex Mining Corp. on Thursday said its net income increased by 76 percent in the first nine months of the year on the back of improved tonnage and favorable metals prices.
In a statement, Philex reported a net income of P1.33 billion in January-September, up 76 percent from P756 million a year earlier.
Core net income was up 64 percent at P1.332 billion from P811 million in the same comparable period. Revenue increased by 7 percent at P7.705 billion from P7.173 billion.
Gold sales contributed P4.797 billion, copper accounted for P2.841 billion, and silver registered P66.4 million.
The higher average prices for gold at $1,273 per ounce more than offset the lower gold output and the increase in copper production more than compensated for the 11 percent drop in average copper prices at $2.19 per pound.
The Padcal mine operated for 271 days during the period, milling over 7.2 million tons of ore from 6.9 million tons.
The higher tonnage translated to 27.1 million pounds of copper, up 6 percent from 25.7 million pounds. Copper grades improved at 0.209 percent, offsetting the slight drop in the recovery rate at 81.7 percent.
Gold output reached 79,845 ounces from 81,599 ounces. The drop in gold production was associated with lower gold grades at 0.419 grams/ton (g/t) and metal recovery at 82.1 percent.
The July tonnage of 861,000 was the highest year-to-date and a five-year record. Gold production at 11,332 ounces in July was the highest since January 2011, while copper output at 3.53 million pounds was a record since May 2013.
“Our corporate initiatives have provided us with an optimal organizational structure and operational framework that will allow us to sustain the long-term viability of operations and continuously and consistently perform our mandate as a responsible and conscientious mineral resource development company,” said Eulalio Austin Jr., president and CEO of Philex.
Austin said the Definitive Feasibility Study’s (DFS) third party review for the Silangan Project is expected to be completed early next year.
“An extensive review is being conducted to generate the best return from the project,” Austin said.