Philex's Silangan Mine produces first metal as Q3 profit rises

Insider Spotlight

• Silangan Mine produces its first copper cathodes and gold-silver doré after completing plant commissioning.
• Philex Mining's third-quarter 2026 core net income rises 56 percent to P537 million
• Nine-month reported net income falls to P110 million as foreign exchange losses weigh on earnings
  
  
  
  

Philex Mining Corp. has produced its first copper cathodes and gold-silver doré at its Silangan Mine in Surigao del Norte, marking a major operational milestone as the company's core net income rose 56 percent in the third quarter of 2026.

The mine's processing plant has completed commissioning, making Silangan the country's first mining operation to produce saleable copper through a copper leaching process.

Silangan's initial metal production marks progress toward commercial operations and represents a significant development in Philex's expansion beyond its existing Padcal mine.

Philex president and CEO Eulalio B. Austin Jr. said the milestone followed challenges encountered during the project's development.

“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,” Austin said in a press statement. 

24% increase in gold prices

Philex reported third-quarter core net income of P537 million, up from P344 million a year earlier. Reported net income increased 72 percent to P310 million from P180 million.

Operating revenues grew six percent to P2.67 billion, supported by higher realized gold and copper prices.

Gold prices increased 24 percent to $4,519 per ounce, while copper prices climbed 49 percent to $6.59 per pound.

Operating costs remained flat at P1.96 billion, lifting operating income 28 percent to P710 million.

Core net income up

Despite stronger earnings, production volumes remained under pressure. Gold output declined 35 percent to 4,322 ounces, while copper production fell 28 percent to 3.542 million pounds.

For the first nine months, core net income rose 56 percent to P749 million, although revenues slipped two percent to P6.17 billion.

Reported net income dropped to P110 million from P482 million, reflecting foreign exchange losses of P649 million compared with P38 million previously.

Padcal operations

Philex expects operational momentum to continue through the remainder of 2026, supported by favorable metal prices.

Padcal operations also remained uninterrupted despite a three-day labor strike, with management and union representatives signing a collective bargaining agreement on Oct. 26. —Vanessa Hidalgo | Ed: Corrie S. Narisma