Listed Philex Mining Corp. on Thursday said its earnings for the first three months of the year surged by a third as it managed to bring down its operational costs amid the volatility in metal prices.
In a disclosure to the Philippine Stock Exchange, the miner said the for the first quarter of the year it realized a net income attributable to the equity holders of the parent company of P426 million, 30 percent more than the P328 million posted during the same period last year.
The net earnings resulted in earnings per share of 8.6 centavos.
Core net income derived from the main business of the firm shot up by 82 percent to P389 million versus P214 million in the previous year.
Philex attributed the company’s strong performance to work efficiency and being able to bring down costs amid the volatility in metal prices, as cost and expenses for the period were lower by 11 percent year-on-year at P1.67 billion.
“Our performance early in the year illustrates the operational and financial impact of the productivity enhancement programs implemented the previous years. We believe that these measures will drive our profitability higher in the years ahead, especially against the backdrop of a much improved pricing environment,” Eulalio Austin Jr., the mining company’s President and Chief Executive Officer said.
For the period, its main Padcal mine milled 2.325 million tons of ore, higher than the 2.221 million tons milled during the same period last year.
“The higher tonnage resulted in a mild improvement in copper production to 8.425
million pounds from 8.361 million pounds amid steady ore grades,” Philex told the PSE.
Gold output, on the other hand, contracted to 24,200 ounces from 25,997 ounces “as higher grade ore is being naturally depleted.”
This operations performance delivered higher revenues of P2.413 billion compared with the P2.393 billion during the same quarter in 2015, with both gold and copper recording slightly better revenues of P1.427 billion from P1.423 billion, and P946 million from P912 million, respectively because of better pricing in the world market.
“The encouraging results from the Bumolo project increased confidence on further extending Padcal’s mine life beyond 2022 and, as such, activities will be advanced to the succeeding stages to reinforce the initial findings,” Philex told the PSE.
Revenues from silver weaken to P16.8 million from P19.4 million, while revenues from petroleum and other sources were affected by the significant drop in oil prices and fell to P23.1 million from P37.6 million.
“The company also continued to deleverage its balance sheet as it repaid $5 million out of its outstanding debt in the first four months of the year, which further brought down the parent company’s total debt to $65.5 million as of end-April,” Austin said.
Philex Mining is one of three key Philippine subsidiaries of Hong Kong’s First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and Philippine Long Distance Telephone Co.