Philex Mining Corp. · PSE:PX
Philex Mining — Q1 2015 Earnings Presentation
24 slides from Philex Mining's earnings presentation, Apr 29, 2015
Slide 1: Analyst Briefing First Quarter 2015 Results
Analyst Briefing First Quarter 2015 Results 29 April 2015
Slide 2: Presentation Outline
Presentation Outline (3) Significant Developments (4) Operating and Financial Highlights (14) Update on Silangan (20) Oil and Gas Exploration
Slide 3: Significant Developments
Significant Developments • Implementation of 2nd wave of manpower rightsizing program (February 2015) following Phase 1 in December 2014 • Sale of shares in Indophil Resources (February 2015) • Declaration of 111M tonnes of additional resources (March 2015) • Approval of Silangan project DMPF (April
Slide 4: Operating and Financial Highlights
OPERATING AND FINANCIAL HIGHLIGHTS 4
Slide 5: Operating Statistics
Operating Statistics 1Q2015 1Q2014 Inc (Dec) Tonnage affected by lower Tonnes Milled ('000) 2,221 2,396 -7% Operating Days 88 90 -2% operating days and care and maintenance Ore Grade Gold - gms/DMT 0.435 0.439 -1% Copper - % 0.204 0.223 -9% Lower grades due to natural depletion of Production hig
Slide 6: Financial Highlights
Financial Highlights (in PHP million, 1Q2015 1Q2014 Inc/(dec) unless indicated) Gross Revenue 2,393 2,913 -18% Marketing Charges 200 214 -7% Revenue down due to lower Cost & Expenses 1,887 2,274 -17% output and depressed metal Income from Operations 306 426 -28% prices Other Inc / (charges) 110 (4
Slide 7: Revenue Breakdown
Revenue Breakdown Gold Revenue Share per Product Copper (PhP million) Silver Petroleum & other 2,913 4% 2% 2,393 1% 40% 1% 38% 59% 55% 1Q2015 1Q2014 PRODUCT BREAKDOWN (PhP million) 1Q2015 1Q2014 Inc (Dec) Gold 1,423 1,610 -12% Copper 912 1,178 -23% Silver 19 22 -12% 7 Petroleum & others 38 102 -63%
Slide 8: Cost and Expenses
Cost and Expenses Inc (in PHP million) 1Q2015 1Q2014 (Dec) Production cost Materials & Supplies 427 417 2% Decline in production cost Power 431 426 1% Labor 212 312 -32% due to: More efficient use of ball Contracts 65 146 -55% mills and reagents Others 53 91 -42% Reduction in overhead Cash Pro
Slide 9: Breakdown of Other Charges - Net
Breakdown of Other Charges - Net (in PHP million) 1Q2015 1Q2014 Inc/(dec) Gain on sale of AFS financial assets 107 - - Foreign exchange gain (losses) 13 (34) - Interest Expense (Net) (15) (66) (77%) Provisions - 32 - Others 5 17 33% Total 110 (49) - 9
Slide 10: Capital Expenditures
Capital Expenditures CAPITAL EXPENDITURE PERFORMANCE Oil & gas exploration Other mine exploration Silangan & Kalayaan Padcal & Head Office 1Q2015 1Q2014 CAPITAL EXPENDITURE BREAKDOWN (PhP million) 1Q2015 1Q2014 Padcal & Head Office 310 360 Silangan & Kalayaan 918 979 Other mine exploration 20 39 10
Slide 11: Financial Position
Financial Position ASSETS (in PHP million) As of Mar As of Dec Inc 31, 2015 31, 2014 (Dec) Cash & cash equivalents 4,105 5,232 -22% Receivables & others 4,145 4,299 Current assets 8,250 9,530 -4% -13% Sustained investments in Property, plant & equipment 7,390 7,139 4% Silangan and Padcal push Defe
Slide 12: Cash Flows
Cash Flows (In PHP millions) 1Q2015 1Q2014 Inc/(dec) CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 416 376 10% Adjustments for: Depletion and depreciation 393 428 -8% Gain on sale of asset (107) - Others 26 76 -65% Change in working capital (256) 379 -168% Net cash flows from operati
Slide 13: Breakeven Analysis
Breakeven Analysis COST STRUCTURE (excluding G&A) 1Q2015 1Q2014 Variance Cost per Tonne Cash Production Cost 535 581 -8% Depreciation 168 176 -5% Total 703 758 -7% Operating cost 844 904 -7% Operating Cost per Metal Co-production method Gold ($/oz) 937 956 -2% Copper ($/lb) 2.18 2.39 -9% By-product
Slide 14: Update on Silangan
UPDATE ON SILANGAN 14
Slide 15: Silangan Timetable
Silangan Timetable * Presented Pre-Feasibility Study Obtain remaining Early works/mine to the Board (August 2014) government development/ permit approvals project execution Complete Definitive Feasibility Study Q3 2014 2015/ 2016- 2018/2019 -Q4 2015 2016 2018 Production Satisfy requirements of pro
Slide 16: Next Steps: Finish Bulk Sampling
Next Steps: Finish Bulk Sampling • Bulk sampling work completed First 70 tons arrived at the Lab in Perth WA Mar 30, 2015 Pilot test work commencing Second batch of samples (30 Tons) expected to reach Perth on June 2015 Currently securing a caved portion of the OCD 16 16
Slide 17: Next Steps: Complete DFS
Next Steps: Complete DFS • Geology Final Mineral Resource Model to be completed by July 15 • Mining Pit optimization and equipment selection ongoing • Process Flow sheet selected and throughput optimization ongoing Acid Cyanide Crush Grind Float Leach Leach Float Cathode Dore Con. 17 17
Slide 18: Next Steps: Complete DFS
Next Steps: Complete DFS • Balance of Plant TSF: Embankment construction planning commenced Logistics: port options study in progress (construction of own port likely) Infrastructure: location options planning ongoing Power: options assessment in progress (MGP and EPC) • Market Study Metal
Slide 19: Next Steps: Commence Early Works
Next Steps: Commence Early Works (by June 2015 to meet Q1 2018 first ore) Discipline Key Activities Detailed design and engineering for civil, mechanical, and electrical Engineering infrastructure/equipment Procurement Long lead plant equipment (deposits/allocation of build slot) • Tree cutting perm
Slide 20: Oil and Gas Exploration
OIL AND GAS EXPLORATION 20
Slide 21: Financial Performance
Financial Performance % Inc (in PhP million) 1Q2015 1Q2014 (Dec) Gross revenue 38 102 (63%) Cost and expenses 81 97 (16%) Income (loss) from operations (44) 5 - Other income (charges) (1) 21 - Reported net income (loss) (44) 26 - 62% decline in petroleum revenues due to: Slowdown in Galoc Phase
Slide 22: Financial Position
Financial Position ASSETS (in PHP million) As of Dec As of Dec % Inc 31, 2014 31, 2013 (Dec) Cash & cash equivalents 1,852 1,908 -3% Others 125 153 -18% Current assets 1,978 2,061 -4% Deferred exploration costs & other 6,449 6,436 NCA 0% Total assets 8,427 8,497 -1% LIABILITIES AND STOCKHOLDERS’ EQU
Slide 23: Strong Management, Corporate Governance, CSR & IR Platforms
Strong Management, Corporate Governance, CSR & IR Platforms • Most Promising Company of the Year (Corporate Governance Asia) November 2014 Hong Kong • Best Investor Relations Company (Corporate Governance Asia) April 2015 Hong Kong • Corporate Governance Company of the Year (Asia CEO Awards) Novembe
Slide 24: End of Presentation
End of Presentation Thank you