Friday, 28 April 2023

Philex Mining posts Php388 million core net income for 1Q2023

The attached press release was released in Manila by Philex Mining Corporation (“Philex”)
(PSE: PX), in which First Pacific Group holds an economic interest of approximately 31.2%*.

Philex is a Philippine-listed company engaged in the exploration and mining of mineral

resources, and through investment in Philippine-listed PXP Energy Corporation (PSE: PXP), in
upstream oil and gas exploration and production.

Further information on Philex can be found at www.philexmining.com.ph and on PXP at

www.pxpenergy.com.ph.

* Two Rivers Pacific Holdings Corporation, a Philippine affiliate of First Pacific, holds an additional 15.0% economic interest
in Philex.

* * *

For further information, please contact:

John Ryan Tel: +852 2842 4355
Associate Director Mobile: +852 6336 1411

Sara Cheung Tel: +852 2842 4336

Vice President
Group Corporate Communications
 27 April 2023

PRESS RELEASE

PHILEX MINING POSTS PHP388 MILLION CORE NET INCOME FOR 1Q2023

HIGHLIGHTS

 Core Net Income 1Q2023 reached Php388 million compared with Php676 million in
1Q2022

 EBITDA declined to Php635 million for 1Q2023 from P1.182 billion in 1Q2022

 Favorable metal prices and foreign exchange rates continued to keep the level of
revenues and core net income at profitable levels since the previous year

(MANILA, PHILIPPINES) – Philex Mining Corporation (the “Company” or “Philex”), one of the
oldest and largest gold and copper producers in Southeast Asia, and a leader in right and
principled mining, generated Php388 million Core Net Income and EBITDA of Php635 million for
1Q2023 against the backdrop of favorable gold prices and foreign exchange rates that kept them
within safe margins as a continuation from the previous year. However lower metal output held
back these positive trends.

The production level in 1Q2023 realized operating revenues of Php2.105 billion, lower than the
Php2.528 billion for the same period in 2022. Gold prices in first quarter were higher at US$1,889
per ounce while copper was slightly lower at US$4.00 per pound. Operating costs were slightly
lower than 1Q2022 at Php1.636 billion.

PRODUCTION

Tonnage milled for 1Q2023 was 6% lower at 1.706 million tonnes from 1.822 million tonnes in
1Q2022 as the Company continues to address issues with the grinding equipment at the mill plant.
The requested replacement parts have already been ordered. Ore grades for Gold and Copper
continue to hold to the same levels as in 1Q2022. Gold output for 1Q2023 was 17% lower at
10,062 ounces versus 12,097 ounces in 1Q2022. On the other hand, Copper output for 1Q2023
was 11% lower at 5.531 million pounds versus 6.181 million pounds in 1Q2022.

OPERATING EXPENSES AND EBITDA

Total operating costs and expenses for 1Q2023 stood at Php1.636 billion, at a similar level for the
same period in 1Q2022 at Php1.655 billion. The increases in the purchase costs of the materials

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and supplies as well as equipment parts and repairs were offset by the continued implementation
of the efficiency measures in operations. Higher power rates increased operating costs and
expenses despite lower production level.

EBITDA generated for 1Q2023 reached Php635 million, or 46% lower than the Php1.182 billion in
1Q2022.

OUTLOOK AND THE SILANGAN PROJECT

The current global commodity outlook has turned bullish for Gold – in the face of geopolitical risks,
recession and economic uncertainty – but bearish for Copper, in spite of the latter’s foreseen
surge in demand due to its use in green technology. Price levels though were sustained within
safe margins, has provided the Company with the breathing space to pursue its recovery program
and much-needed repairs on its ageing equipment.

Development works on the Silangan Project in Surigao del Norte are currently underway and are
on schedule with completion of the construction of the east decline portal towards the end of the
1Q2023. Final preparations for the commencement of the development of the tunnel is on-going
with the arrival of tunnelling equipment and accessories. Tunnelling works will commence in May
2023.

The Company will likewise continue with its funding plan for Silangan commenced last year with
the Stock Rights Offering. This involves a debt syndication effort and fresh capital infusion from
the Company’s cash reserves. The Company is in the final stages of the debt syndication process
with several financial institutions.

“We will continue to push the frontier of the Silangan development, pursue improvements towards
our recovery program and sustain the extension of the life of our Padcal mine,” according to Philex
President and CEO Eulalio B. Austin, Jr. “Resilience is still the name of the game as we look for
other business opportunities and for more participation in the ‘green metals space’. Time and
again, the Company and its people have shown that they were able to withstand the challenges of
the times with much fortitude, and this year won’t be any different.”

-------------------------------------------- O ------------------------------------------------

Disclaimer on Forward Looking Statements

This press release may contain forward looking statements with respect to the results of
operations and business of Philex Mining Corporation (“PX”). Such forward looking statements
involve known and unknown risks, uncertainties, and other factors which may cause the actual
performance of PX to be different from any future performance implied.

For further information, please contact:

Romeo B. Bachoco - Chief Finance Officer
Email: [email protected]
Phone: +63 2 8631 1381

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PHILEX MINING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME - UNAUDITED
(Amounts in Peso Thousands, Except Earnings Per Share)
Three Months Ended
March 31
2023 2022

REVENUES P 2,105,356 P 2,528,194

COSTS AND EXPENSES
Production costs 1,260,757 1,094,562
Depletion, amortization and depreciation 167,081 331,425
Excise taxes and royalties 145,168 163,397
General and administrative expenses 63,338 66,004
1,636,344 1,655,388

OTHER (CHARGES) INCOME

Foreign exchange gain - net 26,234 18,950
Interest income 5,134 667
Share in net losses of associates (5,372) (5,428)
Others - net (16,023) (20,140)
9,973 (5,951)
INCOME BEFORE INCOME TAX 478,985 866,856
PROVISION FOR (BENEFIT FROM) INCOME TAX
Current 121,750 224,870
Deferred (32,338) (48,402)
89,412 176,468
NET INCOME P 389,573 690,387

NET INCOME ATTRIBUTABLE TO:

Equity holders of the Parent Company 389,573 690,387
Non-controlling interests - -
P 389,573 690,387

CORE NET INCOME P 387,897 P 676,174

BASIC/DILUTED EARNINGS PER SHARE P 0.067 P 0.140

CORE NET INCOME PER SHARE P 0.067 P 0.137
EBITDA P 634,964 P 1,182,195

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PHILEX MINING CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
(Amounts in Peso Thousands, except Par Value Per Share)
March 31 December 31
2023 2022
(Unaudited) (Audited)
ASSETS
Current Assets
Cash and cash equivalents P 4,047,137 P 3,925,296
Accounts receivable - net 660,072 580,621
Inventories - net 1,023,168 1,151,089
Derivative assets 13,143 -
Other current assets - net 931,561 765,754
Total Current Assets 6,675,081 6,422,760

Noncurrent Assets
Deferred exploration costs 29,704,768 29,491,920
Investment in associates - net 3,600,304 3,605,677
Property, plant and equipment - net 2,742,310 2,729,865
Pension asset - net 342,950 340,725
Financial assets measured at fair value through other
comprehensive income (FVOCI) 145,207 145,207
Other noncurrent assets 527,972 522,595
Total Noncurrent Assets 37,063,511 36,835,989
TOTAL ASSETS P 43,738,592 P 43,258,749

LIABILITIES AND EQUITY

Current Liabilities
Loans and bonds payable P 1,576,440 P 1,616,895
Accounts payable and accrued liabilities 2,774,985 2,670,983
Subscription payable 2,767 2,767
Income tax payable 246,101 124,351
Dividends payable 341,581 343,346
Total Current Liabilities 4,941,874 4,758,342
Noncurrent Liabilities
Bonds Payable 5,979,819 5,907,961
Deferred tax liabilities - net 1,692,887 1,720,847
Provision for losses and mine rehabilitation costs 2,342 2,342
Total Noncurrent Liabilities 7,675,048 7,631,150
Total Liabilities 12,616,922 12,389,492

Equity Attributable to Equity Holders of the Parent Company

Capital stock - P1 par value 5,782,399 5,782,399
Additional paid-in capital 2,885,163 2,885,163
Retained earnings
Unappropriated 8,763,771 8,493,736
Appropriated 10,500,000 10,500,000
Net unrealized gain on financial assets measured at FVOCI and
derivative 37,248 54,870
Equity Conversion option 857,863 857,863
Equity Reserves 367,655 367,655
Net revaluation surplus 1,849,971 1,849,971
Effect of transactions with non-controlling interests 77,892 77,892
31,121,962 30,869,549
Non-controlling Interests (292) (292)
Total Equity 31,121,671 30,869,257
TOTAL LIABILITIES & EQUITY P 43,738,592 P 43,258,749

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