No doubt, 2021 was a blessing for us considering the high metal prices for copper and gold

Philex Mining Corporation of the Manuel V. Pangilinan group reported triple digit growth in its bottom line last year due to favorable metal prices and steady production.

In a report to the Philippine Stock Exchange, Philex said sustained prices of gold and copper in the global market provided the firm a continuing window of opportunity to optimize the mineable reserves and metal output.

“No doubt, 2021 was a blessing for us considering the high metal prices for copper and gold that even with the marginal grades of ore that we are mining, we continue working on our business continuity plans,” according to Philex president and CEO Eulalio Austin Jr.

The company said full-year core net income soared by 118 percent to P2.53 billion from P1.16 billion the previous year.

Projects in pipeline

Philex, one of the oldest and largest gold and copper producers in Southeast Asia, said the sustained higher level of realized prices for gold and copper resulted in higher operating revenues in 2021, registering a healthy 25 percent increase over 2020.

Operating revenues reached P9.79 billion in 2021 from P7.83 billion in 2020. Operating costs were only slightly elevated by 4.8 percent to P6.598 billion from P6.298 billion in 2020 due to the increase in the cost of materials and supplies, partly offset by lower power cost and non-cash charges.

Realized gold prices were at their highest level in the last quarter of 2021 reaching $1,783 per ounce, while copper reached $4.44 per pound in October 2021.

Meanwhile, Philex chairperson Pangilinan said the firm is looking at new investment opportunities while it extends the life of its Padcal mine. Philex is currently conducting a study to determine the feasibility of the mineable resources and reserves surrounding the Padcal mine.

The company also plans to raise funds for the Silangan project through a stock rights offering (SRO).

The initial capital needed under the in phase mine plan is $224 million or about P11.2 billion, to be funded by a combination of proceeds from SRO, from the cash reserves of Philex, and possibly some incremental debt at the Silangan level.