Philex Mining Corp. swung to a consolidated net loss of P592 million in the first quarter of 2026, reversing from a profit a year earlier, as production at its Padcal Mine was hit by repairs to damaged facilities. 

The company said in a report on Monday that the loss was driven mainly by a sharp drop in ore processing and metal output after a structural failure in the ore bin supports disrupted operations at its Secondary/Tertiary Crushing Plant, prompting restoration work during the period.

The disruption pushed the company to a core net loss of P281 million, a turnaround from a core net income of P71 million in the same quarter last year. 

Ore processed fell 42 percent to 931,000 tonnes, significantly limiting gold and copper output. Gold production reached 2,227 ounces while copper output totaled 1,869 pounds. 

Financially, the weaker output translated to net revenues of P1.078 billion, which fell short of operating costs of P1.415 billion, further deepening losses. The company also said the revaluation of foreign currency-denominated loans added to the reported net loss.

Despite the operational setbacks, Philex said the impact was partly cushioned by a surge in gold prices, with the realized price jumping 92 percent year-on-year to $4,960 per ounce. Still, the benefit from higher prices was not enough to offset the sharp decline in production during the quarter.

Management said the results reflect “transitional mine conditions” and not normal operations, noting that repairs to the damaged crushing plant section have already been completed and throughput is starting to recover. 

The company expects Padcal to return to normal production levels starting this month and to take advantage of still-elevated metal prices to improve results for the rest of the year.

At the same time, Philex continues to push forward with its Silangan Project, where the Underground Mine and Tailings Storage Facility are now substantially complete as of the end of April 2026. 

The Process Plant is being turned over to Silangan Mindanao Mining Co., Inc., which, together with Ausenco Pty. Ltd., has begun partial and progressive commissioning. 

“As this will be the first fully gold and copper oxide processing facility in the country, we need to be conservative in the commissioning process,” Philex president and CEO Engr. Eulalio Austin, Jr. said.

The timeline for the first production of gold and copper has been adjusted to within the year to allow for refinements in the commissioning process of what will be a fully automated gold-copper oxide processing plant, including the country’s first copper leaching process.