MANILA, Philippines - Philex Mining said the company will review operations if gold prices in the global market will continue to drop, denying an official's statement it is considering a shutdown.
Philex president Eulalio Austin says the company will do a review if gold prices fall below the company's "break-even" point, which depends partly on the quality of its shipments and operating costs.
"If the prices of both copper and gold will fall below our breakeven point, then we will have to review our position. The breakeven point is determined by the quality of ore and our operating cost," Austin said.
He said the "break-even" price is around $1,055/oz. for gold and $2.55/lb. for copper.
Philex mines gold and copper in Padcal, Benguet province.
It has three other projects, but none are operational yet.
Another company official had said layoffs were possible.
Gold prices are dropping due to several reasons. Many investors shift to gold when the dollar is falling or inflation is rising.
But the dollar is strengthening, as the Fed ended its dollar-printing program. Inflation is slowing as oil prices fall, bringing down transport, energy and manufacturing costs. - With reports from Coco Alcuaz, ANC and Diane Rivera, ABS-CBN News