Philex Mining Corp. · PSE:PX
Philex Mining — Shareholder Meeting (June 2016)
52 slides from Philex Mining's shareholder meeting presentation, Jun 29, 2016
Slide 1: President's Report
President’s Report Philex Mining Corporation 2016 Annual Stockholders’ Meeting 29 June 2016
Slide 2: Updated Resources
Updated Resources 908-782 ML 908 ML 61.2 0.22 0.35 297.7 687.8 798 ML 46.2 0.20 0.36 203.7 5930.9 782 ML 40.2 0.22 0.37 198.1 475.5 Subtotal 147.6 0.22 0.36 699.4 1,694.2 | 800-600ML 1109019038 A730 1.3420 TOTAL 258.5 0.20 037 1,172.4 3,036.2
Slide 3: Updated Reserves
Updated Reserves
Slide 4: Overview of the Bumolo Project
Current mining area Bumolo Project area Padcal Community Overview of the Bumolo Project (top) and drill rig set up at the site (right) 4
Slide 5: Inferred Resource Estimate at Bumolo
Inferred Resource Estimate at Bumolo MINERAL RESOURCE ESTIMATE CuEq* Tonnes Copper Gold es Contained Gold Classification Copper Cutoff % (000) Grams/Tonne (000 Ibs.) (ounces) The Mineral Resource has been estimated in accordance with the Philippine Mineral Reporting Code “PIMRC”. The Competent Perso
Slide 6: Million tonnes milled
Million tonnes 9.5 9.2 7.7 2013 2014 2015* *operated for 357 days compared with 359 in 2014 6
Slide 7: Gold Production and Grade, Revenue
Production and Grade Revenue 0.800 120,000 0.750 Gold Production (ounces) Grade 110,000 0.700 107,887 5.9 5.7 105,008 5.6 100,000 P billions 0.650 99,802 0.600 90,000 0.550 80,000 0.500 0.503 70,000 0.450 0.438 0.438 0.400 60,000 2013 2014 2015 2013 2014 2015 7
Slide 8: Copper Production and Grade, Revenue
Production and Grade Revenue 0.800 38 Copper Production (million pounds) 0.700 Grade 36 4.6 4.6 35.4 34 0.600 34.1 P billions 3.5 32 0.500 32.5 30 0.400 28 0.300 0.236 0.212 26 0.200 24 0.205 0.100 22 - 20 2013 2014 2015 2013 2014 2015 8
Slide 9: Gold and Copper Prices
1,350 8.00 1,297 7.00 1,300 1,270 6.00 1,250 Gold $/oz 5.00 1,200 Copper $/lb 3.27 1,147 4.00 1,150 3.00 1,100 2.98 2.00 2.29 1,050 1.00 1,000 - 2013 2014 2015 9
Slide 10: P billions
P billions 10.5 10.9 9.4 2013 2014 2015 10
Slide 11: Total costs and expenses
Total costs and expenses General and admin expenses 8.4 7.5 7.3 P billions 1.3 0.9 0.6 2013* 2014** 2015 *operated for 9 months **operated for 12 months 11
Slide 12: Production Cost and Operating Cost
Production Cost Operating Cost 740 880 859 720 860 844 700 840 817 680 820 660 790 785 800 640 780 716 703 620 755 760 670 655 654 600 740 619 580 720 560 700 FY2014 1Q2015 2Q2015 3Q2015 4Q2015 1Q2016 12
Slide 13: P millions
776 P millions 703 312 2013 2014 2015 13
Slide 14: Dividends worth P1.4 billion in 2016
PROPERTY P millions DIVIDENDS WORTH P1.4 395 BILLION IN 2016 99 None - 2013 2014 2015 14
Slide 15: P billions
44.6 43.5 39.9 P billions 2013 2014 2015 15
Slide 16: P billions
6.2 P billions 4.3 3.3 2013 2014* 2015 *excludes P7.2B worth of seven-year convertible bonds issued on Dec 2014 (P6.0B outstanding bonds payable plus equity conversion option of P1.2B presented under equity) 16
Slide 17: Capital expenditures P billions
Padcal Silangan 6.1 5.8 Other mine exploration Oil & gas exploration 4.1 P billions 2013 2014 2015 17
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Slide 19: Commissioning of New Draw Points
1. Commissioning of New Draw Points 2016 Development Program No. of Draw Block Level Tonnes Cu % Au g/t points 782 ML 91 4,370,288 0.252 0.463 798 ML 82 5,340,335 0.201 0.347 Average 0.225% 0.405 As of June 21, 2016, 13 draw points have been commissioned at the 782 ML and 19 draw points at the 798 M
Slide 20: Tailings Cyclone for Water Recovery
2. Tailings Cyclone for Water Recovery Install 18 cyclones to increase the mill process water recovery to around 50% Reduce fresh water pumping from river Generate savings on power consumption 20
Slide 21: TSF Spillway Raising
3. TSF 3 Spillway Raising Spillway Decant Walls 1-7 at 611.25 ML from 605 ML To increase the containment capacity of the TSF3 due to additional tailings arising from the extension of Padcal’s mine life by two more years 21
Slide 22: Silangan Project
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Slide 23: Silangan permits and feasibility study
• All major permits secured: Environmental Compliance Certificate (ECC) for surface mining Amended Project Feasibility Study, DMPF (to reflect change in mining method) approved by the Department of Environment and Natural Resources • Definitive Feasibility Study undergoing parallel peer review a
Slide 24: Environmental awards and ISO 14001 Certification
• Presidential Mineral Industry Environmental Award (2014 & 2015) Reflects the Company’s adherence to and implementation of an effective environmental preservation program • ISO 14001 Certification: International Organization for Certification for Environmental Management System (EMS) Showcases
Slide 25: Corporate Social Responsibility
Corporate Social Responsibility
Slide 26: Making Mining A Winner In ASEAN Integration
Source: Mr. James Villafuerte, ADB Office of Regional Economic Integration “Making Mining A Winner In ASEAN Integration” (Sept 2014)
Slide 27: Padcal Community
Padcal Community
Slide 28: Information, Education and Communication
Slide 29: Health
Health
Slide 30: Health
Health
Slide 31: Education
Education
Slide 32: Education
Education
Slide 33: Livelihood
Livelihood
Slide 34: Livelihood
ihood Livel
Slide 35: Public Infrastructure
Public Infrastructure
Slide 36: Public Infrastructure
Public Infrastructure
Slide 37: Environment
Environment
Slide 38: Various Company Stakeholders
VARIOUS COMPANY STAKEHOLDERS
Slide 39: Recognition
Cc @ 2) 4 So @ S <x Recognition
Slide 40: Corporate Governance Awards
Top 3 Philippine PLCs in Corporate Governance Top 50 PLCs in the ASEAN Region for Corporate Governance (Asean Corporate Governance Scorecard Awards) November 2015 Manila PSE Bell Awards for Corporate Governance Finalist and Top 5 Awardee (2015 PSE Bell Awards) November 2015 Manila
Slide 41: CSR and Annual Report Awards
Top CSR Advocates in Asia (Asia Corporate Excellence and Gold Anvil Award – Philex Sustainability (ACES) Awards) Mining Corporation November 2015 Annual Report 2014 (The Anvil Awards) February 2016 Quill Award for Excellence – Philex Finalist – Mining Corporation Executive Leadership Annual Report 2
Slide 42: Best CEO, Investor Relations and Environmental Awards
Best Investor Relations Best CEO in Mining – Company (Corporate Governance Asia) Mr. Eulalio B. Austin, Jr. April 2015 Hongkong (The Asset Magazine) December 2015 Hong Kong Presidential Mineral Industry Gold Award in Financial Environmental Award Performance, Silangan Project Management, Corporate (
Slide 43: First Quarter 2016 Results
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Slide 44: Million tonnes milled, 1Q2015 vs 1Q2016
Million tonnes 2.325 2.221 1Q2015 1Q2016 44
Slide 45: Copper and gold production
Copper Gold Million pounds 8.425 In ounces 8.361 25,997 24,200 1Q2015 1Q2016 1Q2015 1Q2016
Slide 46: P millions
2,413 P millions 2,393 1Q2015 1Q2016 46
Slide 47: P millions
420 P millions 305 1Q2015 1Q2016 47
Slide 48: Operating Margin and EBITDA Margin
Operating Margin EBITDA Margin 36% 30% 24% 14% 1Q2015 1Q2016
Slide 49: Capital expenditures P Billion
Oil & gas exploration Other mine exploration Silangan & Kalayaan 1.25 Padcal & Head Office P Billion 0.63 1Q2015 1Q2016 49
Slide 50: Strategic priorities
Increase operational efficiency at Padcal through innovation and process re-engineering Extend Padcal’s mine life by extensively exploring vicinity within and around Padcal Conduct peer review of Proceed with financing, and complete Silangan construction and mine Project DFS development of Silangan
Slide 51: There's life in mining. Vision and Mission
There’s life in mining. Vision Our vision is to be a highly respected, world-class natural resource company, committed to deliver excellent value to its investors, employees and other stakeholders. Mission We are a responsible mining corporation that discovers and processes minerals and energy resou
Slide 52: End of presentation
Thank you End of presentation