Philex Mining reports slight drop in 2009 income

ABS-CBN News

Posted at Mar 08 2010 02:37 PM | Updated as of Mar 08 2010 10:38 PM

MANILA, Philippines - Copper-gold producer Philex Mining Corp. ended 2009 with a net income of P2.74 billion, slightly lower than the P2.8 billion registered in 2008.

Philex president J. Ernesto Villaluna Jr. however said that last year's profit was the company's fourth highest to date.

Production in 2009 was lower at 8.2 million tons with grades of 0.567 grams of gold/ton and 0.228% copper, compared to 8.9 million tons with grades of 0.643 grams of gold/ton and 0.257% copper in 2008. Philex said ground condition and ore handling problems affected mine delivery.

The impact of lower production was partly offset by higher metal prices, averaging $946 per ounce of gold and $2.24 per pound of copper compared to $788 and $22.22, respectively, in 2008.

Philex also reported a non-recurring negative goodwill of P766 million under accounting rules, stemming from the acquisition of the shares of the Silangan Project from Anglo American Exploration (Philippines) Inc.

Based on previous disclosures, Philex's shipments in 2009 had a total estimated value of P9.51 billion. The value of the firm’s monthly shipments had been steadily rising since early last year as world metal prices started to recover.

The firm earlier reported that the value of its production for the first 2 months of 2010 rose 9% to P1.58 billion from P1.45 billion in the same period in 2009.