PHILEX Mining Corp. recorded a net income of P402 million during the first quarter of the year. Compared to the first four months of the previous year, this is higher by 38 percent, which officials of Philex attributed to lower operational costs amid the volatility of metal prices.
The company will continue to implement productivity-enhancement programs implemented during previous years, Philex President and CEO Eulalio B. Austin Jr. said in a statement.
“We believe these measures will drive our profitability higher in the years ahead, especially against the backdrop of a much-improved pricing environment,” he said.
From January to March, operating for 90 days, the company was able to mill 2.325 million tons. During the same period last year, operating for only 88 days, the company milled 2.221 million tons of ore.
The higher tonnage improved copper production to 8.425 million pounds, compared to the 8.361 million pounds during the same period last year.
Gold output, however, shrank to 24,200 ounces, compared to the previous year’s record of 25,997 ounces. This was due to the depletion of higher-grade ore in the Padcal mine.
Total revenues during the period reached P2.413 billion, with both gold and copper recording slightly better revenues at P1.423 billion and P946 million, respectively.
Improvement in gold revenues was attributed to the improving prices of the yellow metal in the world market, which was pegged at $1,239 per ounce, compared to the average price during the first quarter of 2015 of $1,189 per ounce.
Copper price, meanwhile, pressed revenues, which slightly dropped to $2.25 per pound, from $2.71 per pound.
Revenues from silver totaled P16.8 million, P2.6 million lower than the P19.4 million recorded last year.
Revenues from petroleum and other sources dropped to P23.1 million, compared to last year’s P37.6 million on account of the significant drop in oil prices worldwide.
The resulting net income, in sum, was a result of an 11-percent reduction in consolidated costs and expenses, from P1.887 billion in 2015 to just P1.674 billion during the same period this year.
The production cost went down by 8 percent, from P1.561 billion to P1.438 billion during the review period.