Philex declares P246-M dividends

ABS-CBN News

Posted at Aug 09 2010 12:39 PM | Updated as of Aug 09 2010 08:43 PM

MANILA, Philippines - Philex Mining Corp., the country's largest mining firm, has declared an interim cash dividend of five centavos per share worth a total of P245.8 million after sustaining core net income growth in the first half of the year.

The Philex board of directors approved the cash bonus for all stockholders as of the record date of August 18, 2010, payable on September 13, 2010. The dividend is worth about a quarter of its recurrent earnings.

Philex reported that its unaudited core net income rose 3.8% to P983.9 million during the first 6 months of 2010 from the P948.3 million in the same period last year as income from oil production and higher metal prices offset lower ore grades at its Padcal mine.

According to Philex chairman Manuel Pangilinan the interim dividend reflects the board’s confidence in the prospects of the company for the rest of the year.

“We are confident that the second half of the year will be boosted by higher metal prices and better quality ore which we are already mining now, as well as by the continuing greater contribution from our energy operations,” said Pangilinan.

Philex is also banking on its Silangan project whose development phase will commence next year. "Silangan will play a key role in building a bright future for Philex," added Pangilinan.

The Silangan copper-gold mine in Surigao del Sur Province is estimated to hold much higher resources than Philex’s Padcal Mine, which has been in operation for half a century.

Philex also reported that the value of its shipments as of the first week of August rose 12.5% while production value rose 13.3% from January to July 2010.

Based on the firm’s disclosures to the Philippine Stock Exchange, estimated shipment value rose to P6.05 billion from January to the first week of August this year from P5.38 billion in the same period in 2009.

Philex's August 2 shipment amounted to 5,018 dry metric tons of concentrates, containing 9,850 ounces of gold, 2.74 million pounds of copper and 9,955 ounces of silver.

Meanwhile, estimated production value from the Padcal mine for the first 7 months of the year rose to P6.12 billion from P5.40 billion last year on the back of higher tonnage and metal prices.

For July alone, the Padcal mine delivered 804,978 DMT of ore, resulting in 5,108 DMT of concentrates, containing 61.11 grams of gold per DMT, 24.81 percent copper, and 61.80 grams of silver per DMT.

The estimated value of the month’s production is P964 million.