Philex Q1 earnings down 68% due to Padcal closure

MANILA, Philippines – Philex Mining Corp., the country’s largest listed mining firm, announced on Tuesday, April 30, its net income in the first quarter of 2013 plunged 68% from a year ago due to the suspension of its Padcal mine operations.

Philex said its January to March net income reached only P403 million, significantly down from the P1.268 billion it recorded in the same period last year.

Core net income, which excludes extraordinary charges or gains, fell 90% to P132 million from P1.330 billion.

The core income was “realized only during March 2013, when the Padcal mine was allowed to operate,” the company said.

Padcal was shut down beginning August 1, 2012, when one of its tailings ponds broke, spilling waste into nearby river systems.

The mine was allowed to temporarily operate on March 8 to fill the void in its tailings pond, a necessary procedure to prevent the pond from collapsing again.

Since the resumption of its operations, some 611,801 tons of minerals were milled from the mine: 7,610 ounces of gold and 2.434 million pounds of copper.

Philex Chairman Manuel V. Pangilinan said the company hopes to get government’s approval for full operations so it could recover its losses.

“The next step for us is to obtain approval for a permanent resumption so Padcal can get back to its normal status as soon as possible,” he said. – Rappler.com