Philex January-May output up 60% to P6.72B

MADELAINE FAYE D. CABRERA
Malaya Business Insight

Philex Mining Corp., the country’s largest and most profitable gold and copper producer, yesterday said production from January to May this year increased 60 percent to P6.72 billion from P4.21 billion in the same period last year.

Philex said shipments in the first five months of this year rose 44 percent to P4.72 billion from P3.28 billion.

Rogelio Laraya, Philex senior adviser, said the Padcal mine in May alone delivered 810,763 dry metric tons (DMT) of ore, resulting in 5,881 DMT of concentrates containing 62.19 grams of gold per DMT, 24.38 percent copper, and 59.48 grams of silver per DMT.

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Philex sees Padcal going strong till 2020

Malaya Business Insight

The Padcal gold and copper mine in Benguet, the 50-year-old project that made Philex Mining Corp. into the No.1 local mining company, may be good for another 10 years, three years more than its revised estimated lifetime.

Pushing the lifetime of the mine will, however, require P700 million in new investments, which Philex does not see any problem in meeting.

"The cash flow can handle that. We have a robust cash balance," said Philex president Jose Ernesto Villaluna Jr.

Philex posted a net income of P3.95 billion for last year, up from P2.74 billion in 2009. Operating revenue was P13.4 billion, up 48 percent.

"Seven years ago, Padcal’s mine life was only until 2011, but it was extended until 2014 in 2007. This was further extended to 2017," he said.

The latest estimate is 2020.

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