Philex Mining Corp. on Thursday posted a lower net income of P552 million in the first half of 2018, down 23 percent from P719 million year-on-year.
Philex Mining said Thursday in a disclosure that core net income fell 14 percent to P646 million in the first six months from P748 million on year.
“These results reflect lower metal production, higher non-cash charges and a 100-percent increase in excise tax rates,” it said.
Philex Mining said the Padcal mine milled 4.388 million tons of ore during the period or 6 percent higher than 4.138 million tons a year ago when low delivery was experienced due to issues associated with bouldery ore, equipment availability and ground problem. The company said it was currently addressing the issues.
Consolidated revenues amounted to P4.646 billion, down from P4.756 billion in the same period last “due to lower metal output, brought about by lower head grades and lower recovery, partially offset by higher tonnage, improved metal prices, and favorable foreign exchange rates.”
Revenue from copper reached P2.262 billion during the period from P2.007 billion a year ago as the average realized copper prices rose to $3.11 per pound from $2.65.
Increased revenues offset the lower copper production of 14.149 million pounds during the period from 14.992 million pounds a year ago.
Gold revenue totaled P2.349 billion from P2.71 billion as average gold prices reached $1,314 per ounce from $1,258.
Gold production, however, is lower at 34,583 ounces from 43,251 ounces last year.
Revenues from silver declined to P35.9 million from P38.9 million last year.
Philex Mining said as the challenges of operating the mature Padcal mine continued, the company was exploring several globally-accepted mining practices geared toward mine life extension beyond 2022.
“In addition, engineering interventions, as well as operational efficiency improvements, will be the focus of our Padcal Mine in the coming years, while waiting for the results of the explorations being undertaken in the vicinity of the Padcal Mine,” said Philex Mining president and chief executive officer Eulalio Austin Jr.