Higher operating costs reduce Philex Q1 core income to P71M

PHILEX Mining Corp.'s reported net income for the first quarter of 2025 reached P131 million, up 14 percent year on year, but core profit plunged 32.38 percent to P71 million from P105 million last year, partly due to higher operating costs.

In a disclosure, the Pangilinan-led mining firm said operating revenues rose to P1.9 billion from P1.7 billion in the same period last year as realized gold and copper prices continued to improve. Average gold prices rose to $2,587 per ounce from $2,061 per ounce last year, while average copper prices also improved to $4.32 per pound from $4.00 per pound last year.

Operating costs, however, increased to P1.76 billion from P1.64 billion, negatively affecting the mining company's bottom line.

Philex said tonnage milled from January to March reached 1.602 million tons, higher than the previous year's 1.585 million tons. Gold output fell to 6,083 ounces from 7,803 ounces in 2024. Copper output was also slightly lower at 4.595 million pounds against last year's 4.669 million pounds.

Philex said that its Padcal Mine continued to pose challenges to its ability to operate efficiently in an environment of high metal prices and heavy reliance on the resiliency of its employees.

Meanwhile, development works at the Silangan project were said to have accelerated compared to plan, with operations scheduled to start in the first quarter of next year.

"It is imperative that we usher Silangan into production based on schedule to initially augment the performance of the Padcal Mine while we are relentlessly pursuing other business opportunities," Philex President and CEO Eulalio Austin Jr. said.

"Copper and gold prices are high in the face of global trade and supply chain uncertainties, brought by recent economic policy changes, and we take advantage of this to push forward the Silangan Project and the remaining Padcal potential," he added.

Philex's Padcal mine life is projected to last until 2028 or beyond, Austin said.

On Friday, Philex Mining shares were down 15 centavos, or 2.16 percent, closing at P6.80 each.