Philex Mining Corp. Reports Decrease in 2023 Core Net Income
Philex Mining Corp., led by the Pangilinan group, reported a significant decrease in its core net income for the year 2023, amounting to P963 million. This figure represents a 44.43 percent decline from the P1.733 billion net income recorded in 2022, according to the company's recent disclosure to the Philippine Stock Exchange.
The mining firm attributed the reduction in net income to a combination of lower production outputs and increased operating costs and expenses. Despite the downturn, the impact was somewhat mitigated by the continuous favorable metal prices and the depreciation of the peso.
In terms of production, Philex experienced an approximate eight percent reduction in total tonnage milled, from 7.432 million metric tons in 2022 to 6.853 million metric tons last year. This decline in production volume was reflected in both gold and copper outputs, which fell due to lower ore grades. Specifically, gold production dropped by over twenty percent to 37,784 ounces from the previous year's 48,567 ounces, and copper output decreased by 15 percent year-on-year to 21.298 million pounds from 25.086 million pounds.
The decrease in mine output led to a P1.536 billion reduction in operating revenues, down to P7.726 billion in 2023 from P9.262 billion in 2022. However, Philex noted positive aspects within its annual performance, highlighting an increase in realized gold prices, which peaked at $1,964 per ounce in the fourth quarter, and an average copper price of $3.76 per pound throughout the year.
Operating costs and expenses also saw a decrease of 6.27 percent, totaling P6.673 billion last year compared to P7.12 billion in 2022. Despite the challenges faced in 2023, Philex Mining Corp. continues to navigate the volatile mining industry, leveraging favorable metal prices and strategic financial management.
