PHILEX Mining Corporation posted core net income of P1.7 billion, up six percent from the previous year, as higher metal prices offset lower output.
In a disclosure to the Philippine Stock Exchange (PSE) on Wednesday, the company said “metal output was affected by bouldery ore, lower ore grades and other production-related issues”.
Gold output for 2017 decreased to 84,638 ounces from 103,304 ounces while copper output reached 30.1 million pounds versus 35.1 million pounds in 2016.
Operating revenues amounted to P9.98 billion, with gold revenue totaling P5.43 billion as prices improved from $1,254 per ounce to $1,273 per ounce. Revenue from copper reached P4.47 billion while revenue from silver totaled P77.2 million.
“While overall output was lower for the year, the last four months of 2017 showed a 15% improvement in tonnage compared with the average in the first eight months due to engineering interventions and additional manpower,” the company said.
These measures, according to Philex, partially addressed the issues that affected production from January-August 2017.
Consolidated costs and expenses for 2017 were lower at P6.778 billion from P6.9 billion in 2016, while foreign exchange losses due to the depreciation of the Philippine peso against the US dollar also narrowed from P145.2 million to P39.5 million.
Philex declared a cash dividend P0.04 per share to shareholders, bringing total cash dividend in 2017 to about 24 percent of core net income for the year.
“With 2017’s financial performance, the Company sustained the increase in net income for the fifth consecutive year since 2012, amid volatile metal prices and a challenging regulatory environment,” Philex said.
Philex Mining and its subsidiaries are engaged in large-scale exploration, development, and utilization of mineral resources. The company operates the Padcal mine, one of the oldest operating mines in the country.