Home Economy Philex Mining eyes extension of Padcal mine operations until 2027

Philex Mining eyes extension of Padcal mine operations until 2027

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PHILEX Mining Corp. said it may extend operations at its Padcal mine site in Tuba, Benguet until 2027 if gold prices remain elevated.

“At current metal prices, we (can extend) until 2027,” Philex Mining President and Chief Executive Officer Eulalio B. Austin, Jr. said during the company’s annual stockholders’ meeting on Tuesday.

Gold averaged $2,300 per troy ounce in June, while copper averaged $4.37 per pound, according to World Bank data.

Originally slated to cease operations by the end of this year, the Padcal mine has been operational since 1958.

Mr. Austin said that extending the mine’s lifespan also depends on the company’s profitability.

He added that the company’s production cost for gold was $1,800 per troy ounce and  $3.4 per pound for copper.

If costs rise but are offset by high metal prices, operations will continue, Mr. Austin said.

At the same time, he expressed contentment with metal prices above $2,000 per troy ounce for gold and $3.5 per pound for copper, which he described as the company’s break-even points.

In the first quarter, Philex Mining’s attributable net income dropped by 71% to P114.72 million from P389.57 million, primarily due to lower metal production.

On Tuesday, Philex shares fell by 2.55% or seven centavos to close at P2.68 apiece.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — Adrian H. Halili

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