Stock News 2012: Philex profit falls 37% on lower gold output

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.

http://www.philstar.com/Article.aspx?articleId=831539&publicationSubCategoryId=66

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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.

http://www.philstar.com/Article.aspx?articleId=782500&publicationSubCategoryId=66