Stock News 2012: Philex to build new schools

Philex Mining Corp. and subsidiary Silangan Mindanao Mining Company, Inc. (SMMCI) have entered into an agreement with the Armed Forces of the Philippines’ 52nd Engineering Brigade to address the classroom shortage in the province of Surigao del Norte.

In a statement yesterday, Philex said the agreement signed by the parties stems from another agreement signed by Philex with the AFP’s peace and development arm, the National Development Support Command, late last year.

Under the agreement, classrooms in the town of Placer in the province would be repaired and constructed by the two parties.

Philex said the works should be completed before the opening of classes in June.

Projects in the pipeline include the repairs of six classrooms in Barangay Anislagan, the construction of a two-classroom building in Barangay Boyongan and repair of five classrooms in Barangay Macalaya.

“Education provides the opportunity for our children in Surigao del Norte to follow their dreams and rise above poverty. It is our responsibility to ensure that happens, and we start by addressing the basic problem of classroom shortage,” Philex Mining President and chief operations officer Eulalio B. Austin said.

Philex is developing the 5,184-hectare Silangan project in Surigao del Norte.

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Stock News 2012: Philex posts record income

Photo of Manny (Photo credit: Wikipedia)Philex Mining Corp. said its net earnings surged to a record P5.77 billion last year, up 46 percent from P3.96 billion in 2010, on increased metal production and unprecedented global metal prices.

Core net income likewise hit an all-time high of P5.57 billion, 34 percent higher than a year ago. Operating revenues also reached a historic high of P16.13 billion or an increase of 20 percent as gold continued its 11-year bull run in the world market.

Revenues from gold operations climbed 29 percent to P9.29 billion with prices rising 26 percent to an average of $1,536 per ounce.

Revenues from copper production, on the other hand, amounted to P6.09 billion, six percent more than the P5.7 billion recorded a year earlier.

Copper price per pound also improved from $3.63 in 2010 to $3.70 in 2011.

Ore milled slightly went up to 9.49 million tons from 9.36 million tons. The company registered a seven-percent growth in volume of copper to 37.955 million pounds and a five percent rise in gold to 140,113 ounces.

“Philex Mining will continue to lead and will focus on exploring additional revenue streams to maximize the opportunities presented by the world’s growing requirements for gold and copper,” said Manuel V. Pangilinan, chairman of Philex.

Pangilinan declined to give an income guidance for the year but said he expects “global demand and supply for metals are expected to be fundamentally strong throughout 2012.”

For this year, the company has budgeted P2.4 billion for its capital expenditures this year, P1 billion of which will go to the exploration and development of the Silangan mine, which contains the combined Boyongan-Bayugo deposit located at the Surigao mineral district in Mindanao.

Pangilinan said the company continues to scout for new acquisitions given its strong balance sheet. “We’re looking at a broad range of opportunities to see continued growth,” he said.

When asked whether Philex is setting it sights on Apex Mining Corp., Pangilinan said all firms engaged in gold and copper operations are on the company’s radar.

“Our main focus shall continue to be on gold and copper. Anything that will come into operations before the Silangan mine, we are interested,” Pangilinan said.

Pangilinan said the company is also interested in acquiring a stake in Manila Mining Corp. if given a choice.

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