Philex Mining Corp. has doubled its profit target this year to P3 billion from P1.5 billion on the back of a P2.8 billion profit last year as a result of stronger gold and copper prices.
In a report to the Philippine Stock Exchange (PSE) yesterday, Philex vice president for finance Renato Migrino said the higher projection is based on the currently prevailing level of metal prices at $950 per ounce gold and $2.50 per pound copper.
Philex has also disclosed the extension of its Padcal mine’s projected operating life from 2014, as previously declared, to 2017, based on the proved reserves of the mine as of June 30, 2009 of 74 million tons, at assumed metal prices of $800 per ounce gold and $2.00 per pound copper and at copper equivalent cut-off of 0.36 percent.
"Please note that none of the above projections takes into account any of the company’s oil and gas projects, especially the recently announced offshore oil discovery in Vietnam of Pitkin Petroleum in which the company is a 21.1 percent shareholder, and the Sampaguita natural gas discovery in the northwest coast of Palawan under GSEC 101 which is pending conversion into a service contract for further exploration," Migrino said.
"It is the company’s view that these oil and gas properties have substantial value the magnitude of which could justify taking them into a separate initiative from the company’s mining ventures which historically have been its core business," Migrino said.
He added that Philex is studying the possible structures or business options that could enable it to further enhance the strategic value of its oil and gas assets to the full advantage and its stockholders.
Meanwhile, Philex disclosed a net income of P1.1 billion for the first half of 2009, 49 percent lower than the P2.2 billion net income for the same period last year, mainly due to lower volumes and the expiration of the Padcal operations’ income tax holiday.
