Philex Mining Reports Strong Q2 Recovery Driven by Metal Prices

Philex Mining Corporation has reported a significant turnaround in its financial performance for the second quarter of 2026, achieving a net income of P392 million (approximately $7 million). This marks a notable recovery from a net loss of P592 million ($10.6 million) in the previous quarter, as operations at its Padcal mine normalized following extensive rehabilitation efforts.

In a disclosure made on July 30, the company highlighted that its consolidated net income for the April to June period more than doubled compared to the same quarter last year, where it recorded a net income of P171 million ($3 million). The improvement is largely attributed to elevated prices for gold and copper, alongside the completion of rehabilitation works at the Padcal mine, which restored its operational capacity.

Core net income for the quarter also saw a substantial increase, rising to P492 million ($8.8 million) from a net loss of P281 million ($5 million) in the preceding quarter, and significantly higher than the P65 million ($1.2 million) reported in Q2 2025. Revenues climbed to P2.423 billion ($43 million), which is more than double the P1.078 billion ($19 million) recorded in Q1 2026 and a 30% increase from the P1.860 billion ($33 million) reported in the same period last year.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) reached P974 million ($17 million), recovering from a negative P129 million in the previous quarter and improving from a positive EBITDA of P325 million a year earlier.

The company’s operational performance improved markedly, with the Padcal mine milling 1.56 million tonnes of ore in Q2, a 68% increase from 931,000 tonnes in the first quarter. Gold production surged by 80% to 4,011 ounces, while copper output rose by 81% to 3.388 million pounds. Average realized gold prices during the quarter were $4,136 per ounce, which, although lower than the record $4,960 per ounce in Q1, represents a 65% increase from $2,504 per ounce a year earlier. Similarly, copper prices improved to an average of $6.23 per pound from $4.53 in the previous quarter.

“The company expects the operational momentum seen in the second quarter to continue through the remainder of 2026, supported by sustained higher levels of prices for gold and copper.”Philex Mining Corporation statement

Despite the positive results for Q2, Philex Mining reported a net loss of P200 million ($3.6 million) for the first half of 2026, reversing the P301 million ($5.4 million) net income recorded in the same period last year. This loss was primarily due to unrealized foreign exchange losses associated with the revaluation of dollar-denominated loans, particularly those linked to the Silangan Project, amid a weaker Philippine peso.

Excluding these non-cash foreign exchange losses, the company’s core net income for the first half of 2026 rose by 56% to P212 million ($3.8 million) from P136 million ($2.4 million) a year earlier. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the first half increased by 29% to P845 million ($15 million).

Looking ahead, Philex Mining expressed optimism about maintaining operational gains at the Padcal mine for the remainder of the year, buoyed by favorable metal prices. The development of the Silangan Project is also progressing, with contractor EEI Corp. steadily handing over completed sections of the process plant for commissioning. Commissioning works by Australian engineering firm Ausenco Pty. Ltd. are on schedule for completion in the fourth quarter of 2026.

On the stock market, Philex Mining shares fell by P0.17 (approximately $0.003), or 2.04%, closing at P8.18 ($0.15) each on the same day the results were announced.