Philex Mining posts record H1 profit

Reuters

Posted at Jul 28 2011 11:24 AM | Updated as of Jul 28 2011 07:31 PM

MANILA, Philippines - The Philippines' top gold and copper miner Philex Mining Corp. said on Thursday it posted record profits in the first half on strong metal prices and output and expects to meet production goals in the second half.

Net profit more than tripled to P3.22 billion ($76 million) from P965 million in the first half of last year, the company said in a statement on Thursday.

Core profit surged 188 % to P2.84 billion in the same period.

"We are anticipating that the company's whole year results could again be setting new record levels," Philex chairman and chief executive Manuel Pangilinan said in the statement, adding he expects metal prices to remain strong and the firm's Padcal mine to hit its production goals in the second half.

The $2.8 billion miner, controlled by Hong Kong's First Pacific Co. Ltd., had net profit of P3.96 billion and core profit of P4.15 billion in 2010.

Shares of Philex gained 0.4% in early deals on Thursday, as the broader market index slipped 0.17%.

Early this month, Pangilinan told Reuters Philex expects to extend the life of its Padcal mine in the northern Philippine province of Benguet up to 2019 from an original plan to close the mine in 2014.

Philex was open to forging joint ventures to develop its $1 billion Silangan project, comprising the Boyongan and Bayugo copper-gold prospects, in Surigao del Norte in the southern Philippines, Pangilinan had also said.

Last month, Philex said Silangan contained 5 billion pounds of copper and 9 million ounces of gold.

The project is adjacent to the Kalayaan copper-gold prospect in the southern Mindanao region which Philex said it planned to explore with partner Manila Mining Corp.

"In the medium term, we will continue to advance the Silangan Project and, in due course, the Kalayaan Project, to put them into commercial operation at the earliest possible time," Pangilinan said on Thursday.