Philex Open Pit Mine (Photo credit: Storm Crypt)Based on a financial report submitted to the Philippine Stock Exchange, Philex said consolidated core net income dipped 26 percent to P2.11 billion as operating revenues slid to P7.1 billion from P7.74 billion.
Philex produced 58,681 ounces of gold, down 19 percent from the previous level’s 72,784 ounces. Copper production, on the other hand, remained steady at 18.34 million pounds or slightly down from 18.66 million pounds a year earlier.
The company’s hedging strategy mitigated the downward effect of softening metal prices with realized gold prices for the period of $1,618 per ounce and copper prices at $4.05 per pound.
Cost and expenses likewise went up 17 percent to P4.05 billion owing to increased power rates.
Philex chairman Manuel V. Pangilinan, however, said he expects conditions to improve in the second half, noting that the company has seen some recovery in grade and total output beginning June.
“We expect gold production volume to be better this second half, but will nonetheless be slightly lower in volume terms compared with last year. Copper volume should be maintained at levels with that of last year,” he said.
Revenues from its petroleum business sharply fell to P57.8 million from P328.9 million a year earlier, owing to lower income by Forum Energy Plc from the Galoc oil field, which temporarily suspended production from its operations off Palawan from November 2011 to March 2012 to allow upgrading of its floating production, storage and offloading vessel.
Forum Energy is 60.5-percent controlled by Philex Petroleum Corp.
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