Higher metal prices boost Philex Mining 2011 profit by 46%

Philex Mining Corp., the country's biggest gold producer, reported an all-time high net income of P5.77 billion in 2011 driven by higher metal prices and production output at its flagship Padcal mine in Benguet province

Rappler.com
Updated 7:31 PM, Sep 19, 2012

MANILA, Philippines - Philex Mining Corp., the country's biggest gold producer, reported an all-time high net income of P5.77 billion in 2011 driven by higher metal prices and production output at its flagship Padcal mine in Benguet province.

On Wednesday, Philex chair Manuel V. Pangilinan said gold prices soared 22% in 2011, resulting in the 46% year-on-year income growth.

With an average selling price for gold at $1,536 an ounce and copper at $3.70 a pound, Philex recovered consolidated revenue of P15.32 billion in 2011, up 21%.

Philex's investment in Pitkin Petroleum PLC, a 64.79% owned unit, was restated in 2011, resulting in an extraordinary gain of P524 million.

For 2012, Panglinan said business plans are based on an average gold price of $1,700 an ounce and copper price of $3.50 per pound, as well as an average foreign exchange rate of P43 to $1 (against P44.49 in 2011).

Pangilinan said its Padcal mine has estimated reserves of 806,000 ounces of gold and 333 million pounds of copper that are expected to last until 2020.

He said Philex continues to evaluate possible acquisitions of mining operations, preferably also on gold and copper, here and abroad since its Silangan gold and copper project is still slated for 2016.

He said Manila Mining Corp., which is adjacent to Philex's Silangan mine, remains an option if mining firm owner Felipe Yap would consider a direct investment by Philex.

No talks between Manila Mining and Philex are ongoing, said Pangilinan. - Rappler.com

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