Philex Mining Corp. · PSE:PX
Philex Mining — Investor Presentation (March 2014)
22 slides from Philex Mining's investor presentation, March 2014
Slide 1: Investor Briefing March 2014
Investor Briefing March 2014
Slide 2: Presentation Outline
Presentation Outline Company Background Strategy Operations Philex Petroleum Financial Performance
Slide 3: Company Background
COMPANY BACKGROUND
Slide 4: Business Structure
Business Structure Shareholders • First Pacific 31.2% • Social Security System 20.5% • Two Rivers 15.0% • Philippine (others) 26.0% • Foreign (other s) 7.3% Padcal Mine Silangan Project Other Projects 100% owned 100% owned • Nagtalay / Philex • Above 773ML • Boyongan Bulawan Petroleum • Below 773ML
Slide 5: Existing and Prospective Mines
Existing and Prospective Mines PADCAL MINE Tuba, Benguet NAGTALAY/ SILANGAN BULAWAN/LABURAN Surigao del Norte Negros Oriental SIBUTAD Zamboanga 5 del Norte
Slide 6: Strategy
STRATEGY
Slide 7: Strategy
Strategy • Declare • Enhance and additional • Complete • Explore maintain resources at pre-feasibility strategic high safety Padcal (both study for partnerships standards within the existing Silangan and pursue mine and nearby Project value-adding • Increase vicinity) acquisitions metal • Declare pr
Slide 8: Operations
OPERATIONS
Slide 9: Padcal Outlook
Padcal Outlook PRODUCTION: >100,000 oz of Gold / year 35 million pounds of Copper / year OPERATING COST: Gold $840 per oz Copper $2 per pound MAJOR INITIATIVES Ongoing program to enhance safety performance and awareness Improve operational processes and systems 9 Implement performance
Slide 10: Padcal Outlook
Padcal Outlook CHALLENGES Permanent lifting of the suspension order Extending the mine life, which involves addressing a number of complex issues: • Regulatory • Mining engineering • Geological OPPORTUNITIES Exploration work todate indicates rich presence of additional resources, within the mi
Slide 11: Silangan Outlook
Silangan Outlook CHALLENGES First underground mining project in the Philippines with high degree of metallurgic complexity Requires significant resources in financing, manpower and technical expertise Estimated project capex of ~US$1.2 billion OPPORTUNITIES Low cost of production • US$2.00/l
Slide 12: Other Gold Mining Projects
Other Gold Mining Projects Nagtalay/Bulawan/ Laburan (Negros Occidental) • Declared resource: 24Mt • Contained gold: 1.5M ozs Sibutad (Zamboanga del Norte) • Declared resource: 17Mt • Contained gold: 460K ozs 12
Slide 13: Philex Petroleum
PHILEX PETROLEUM
Slide 14: Business Structure
Business Structure ENERGY & HYDROCARBON Forum Pitkin Energy Petroleum 48.8% owned 50.3% owned PHILEX PETROLEUM CORPORATION • Incorporated in 2007 • Listed in the Philippine Stock Exchange under code name PXP 14 • Shares issued : 1,700,000,000 • Market Cap.: US$300 million
Slide 15: Philex Petroleum Major Assets
Philex Petroleum Major Assets SC 72 • 70% operating interest in SC72 is held by London listed subsidiary, Forum Energy • Current work has been deferred until 2015 due to maritime dispute between the Chinese and Philippine governments • A CP report stated a contingent gas resources of 2.6 tcf and pro
Slide 16: Philex Petroleum Major Assets
Philex Petroleum Major Assets SC 75 (PERC 4 - Area 4) • 50% operating interest in SC 75 consortium is held by Philex Petroleum • The property is located in Northwest Palawan basin • Awarded by the Philippine government last in January 2014 during the 4th PECR held in July 2012 Peru Block Z – 38 • 25
Slide 17: Financial Performance
FINANCIAL PERFORMANCE
Slide 18: Revenue, EBITDA and Pricing
Revenue, EBITDA and Pricing GROSS REVENUE, CORE AND REPORTED NET INCOME (Pbn) Revenue and EBITDA Revenue Core Net Income performance driven 16.1 Reported Net Income by metal prices 13.4 10.5 Core net income 9.1 5.6 9.1 remains positive 1.8 4.2 5.8 1.7 2.7 3.9 (0.3) 1.5 0.3 2009 2010 2011 2012* 2
Slide 19: Income Statement
Income Statement INCOME STATEMENT HIGHLIGHTS (million pesos) Inc / Amount 2013 2012 (dec) (Pm) Increase in production partially Gross Revenue 10,462 9,137 15% 1,325 offset by the fall in Marketing Charges 660 440 50% 220 metal prices Cost & Expenses 7,480 5,269 42% 2,211 Income from 2,322 3,428 (3
Slide 20: Production Cost Breakdown
Production Cost* Breakdown 2013 2012 Materials and Supplies Materials and Supplies Power Power Labor Labor 2% Purchase Contracts 6% Purchase Contracts 5% 10% Other expenses Other expenses 37% 36% 21% 22% 31% 30% 20 *excludes excise taxes, royalties and HQ expenses
Slide 21: Prices and Costs
Prices and Costs PRICE AND COST PER UNIT Inc / 2013 2012 Amount Gold spot prices* (dec) in the world market Realized Prices fell 32%** in 2013 Gold ($/oz) 1,297 1,638 (21%) (341) Copper ($/lb) 3.27 3.99 (18%) (1) after 12-year bull run Production Cost (P/tonne) 714 647 10% 67 Operating Cost (P/ton
Slide 22: Thank You
End of Presentation THANK YOU