Peso slump eats up Philex profit

The peso’s prolonged weakness is beginning to show its cost on corporate earnings, with Philex Mining Corp. reporting a 77-percent plunge in net income to P110 million in the first nine months as foreign exchange losses overwhelmed gains from soaring gold and copper prices.

In a report on Friday, the mining firm said its net income fell sharply from P482 million a year earlier after foreign exchange losses ballooned to P649 million from just P38 million, largely due to the restatement of its US dollar-denominated loans.

Excluding foreign exchange losses and other non-recurring items, Philex’s core net income jumped 56 percent to P749 million from P480 million, supported by higher metal prices and lower operating expenses.

Gold prices surged 53 percent to an average of $4,405 per ounce from $2,874 a year earlier, while copper prices climbed 44 percent to $6.15 per pound from $4.28.

However, the commodity rally failed to translate into higher revenues, which slipped two percent to P6.17 billion from P6.28 billion as weaker production volumes offset the price gains.

Ore milling declined 22 percent to 4.04 million tonnes, while gold and copper production stood at 10,560 ounces and 8.80 million pounds, respectively.

Philex managed to trim operating costs and expenses by six percent to P5.17 billion from P5.50 billion, lifting operating income by 28 percent to P1 billion.

Despite the nine-month earnings slump, the company staged a recovery in the third quarter, with reported net income jumping 72 percent to P310 million from P180 million a year earlier.

Core net income likewise climbed 56 percent to P537 million from P344 million, while revenues rose six percent to P2.67 billion.

The improvement came as realized gold prices increased 24 percent to $4,519 per ounce and copper prices surged 49 percent to $6.59 per pound during the quarter.

Still, foreign exchange losses remained a drag, reaching P241 million in the third quarter from P184 million a year earlier.

Philex expects its stronger operating momentum to continue through the remainder of 2026, supported by favorable gold and copper prices.

“There were many challenges in this project, but the Company was relentless in seeing this project come through despite challenges,” Philex president and CEO Eulalio B. Austin Jr. said.

“The realization of the Silangan Mine reflects our commitment to creating a sustainable and lasting legacy for the people of Surigao del Norte and for the country as a whole.”

At its Padcal mine, Philex said operations remained uninterrupted despite a three-day strike by its rank-and-file workers, which ended following a settlement agreement with the labor union.

Both parties signed a finalized collective bargaining agreement on 26 October.