Philex Q1 net loss widens on lower output, Padcal disruptions

PHILEX MINING CORP. posted a net loss of P592.48 million for the first quarter (Q1), reversing a P130.58-million profit a year earlier, as revenues declined following lower ore throughput and metal production at its Padcal Mine.

In a disclosure on Monday, the listed miner said it incurred a core net loss of P280.51 million, reversing a P70.73-million profit in the same period last year.

Revenues fell 43.14% to P1.08 billion from P1.9 billion previously.

The company said the decline was due to lower production following disruptions at its Padcal Mine.

“[The net loss was] driven by decline in the ore throughput and metal production at the Padcal Mine due to the restoration works at the partially damaged portion of the Secondary/Tertiary Crushing Plant Section,” Philex said.

Ores milled in the first quarter dropped 42% to 931,000 metric tons (MT), with gold grade at 0.123 grams per dry MT and copper grade at 0.123%.

Gold output reached 2,227 ounces, while copper production totaled 1,869 pounds during the period.

Despite lower output, the company said losses were partly offset by higher gold prices, with realized gold price rising 92% year on year to $4,960 per ounce.

Philex said restoration works at the affected portion of the crushing plant have been completed.

“The Company expects that Padcal will normalize its production throughput starting May 2026 and take advantage of the continuing high metal prices to improve operating results for the year,” it said.

Costs and expenses declined 19.79% to P1.41 billion from P1.76 billion a year earlier.

Meanwhile, the company said the underground mine and tailings storage facility of its Silangan Project in Surigao del Norte were substantially completed as of end-April.

The process plant is being turned over to Silangan Mindanao Mining Co., Inc., which, together with Ausenco Pty Ltd., has started partial and progressive commissioning.

Philex said the target for the first gold and copper metal pour has been adjusted to within 2026 to allow for modifications and enhancements to the commissioning process.

“As this will be the first fully gold and copper oxide processing facility in the country, we need to be conservative in the commissioning process,” Philex President and Chief Executive Officer Eulalio B. Austin, Jr. said.

Philex is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Metro Pacific Investments Corp. and PLDT Inc.

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