Philex Mining Corp. · PSE:PX
Philex Mining — FY2016 Earnings Presentation
20 slides from Philex Mining's earnings presentation, Mar 3, 2017
Slide 1: Analyst Briefing: FY2016 Financial and Operating Results
Analyst Briefing FY2016 Financial and Operating Results March 03, 2017
Slide 2: 2016 Highlights
2016 Highlights • DENR Audit: Padcal Mine NOT included in list for suspension • FY2016 Core Net Income up 83% to P1.66 billion • Net Income more than doubled to P1.57 billion • Cost and Expenses down 2% despite 2% rise in tonnage • US$8.5 million short-term bank debt retired in FY2016 • Declaration
Slide 3: Operating Highlights
Operating Highlights Inc 2016 2015 (Dec) Tonnes Milled ('000) 9,359 9,199 2% Operating Days 362 358 1% Production Gold – ozs • Higher tonnage driven by 103,304 107,887 -4% Copper - lbs ('000) more operating days and 34,961 34,104 3% better efficiency Metal Recovery (%) Gold Copper 82.35 82.13 83.15
Slide 4: Financial Highlights
Financial Highlights (in PHP million, 2016 2015 Inc/(dec) unless indicated) Gross Revenue 10,272 9,189 12% Smelting Charges 893 837 7% • Revenue boosted by Cost & Expenses 6,900 7,011 -2% improved metal prices Income from Operations 2,478 1,341 85% • Smelting charges driven Other Inc / (charges) (20
Slide 5: Revenue Breakdown
Revenue Breakdown Revenue Performance 12,000 1% Revenue per Product 10,000 1% Inc (PhP million) 2016 2015 8,000 39% (Dec) 37% Gold 6,209 5,670 10% Copper 3,976 3,450 15% 6,000 Silver 86 70 23% 4,000 TOTAL 10,272 9,189 12% 60% 62% 2,000 0 2016 2015 Gold Copper Silver 5
Slide 6: Costs and Expenses
Costs and Expenses Inc (in PHP million) 2016 2015 (Dec) Production cost Materials & Supplies 1,681 1,605 5% Power 1,468 1,665 -12% • Lower renegotiated power Labor 893 839 6% rates Contracts 306 293 4% Others 267 212 26% • Reduced depreciation due Cash Production cost 4,614 4,615 0% to extension of
Slide 7: Declining Overhead Expenses
Declining Overhead Expenses 1000 900 929 800 700 600 662 500 400 415 300 373 200 100 0 2013 2014 2015 2016 7
Slide 8: Declining Operating Cost per Tonne
Declining Operating Cost per Tonne 880 860 869 859 840 820 800 808 793 780 760 740 2013 2014 2015 2016 8
Slide 9: Breakeven Analysis
Breakeven Analysis COST STRUCTURE (excluding G&A) 2016 2015 Variance Cost per Tonne Cash Production Cost 493 502 -2% Depreciation 156 168 -7% Total 649 670 -3% Operating cost* 793 808 -2% Operating Cost per Metal Co-production method Gold ($/oz) 919 933 -1% Copper ($/lb) 1.72 1.86 -7% By-product cre
Slide 10: Capital Expenditures
Capital Expenditures Capital Expenditure Breakdown Capital Expenditure Performance (PhP million) 2016 2015 Inc (Dec) Other mine exploration Padcal & Head Office 1,589 1,534 4% Silangan & Kalayaan P4.7B Silangan & Kalayaan 921 3,068 -71% Padcal & Head Office Other mine 183 101 65% exploration P2.6B T
Slide 11: Financial Position
Financial Position ASSETS (in PHP million) As of As of Inc (Dec) Dec 31, 2016 Dec 31, 2015 Cash & cash equivalents 458 1,009 -55% Receivables & others 6,437 4,263 51% Current assets 6,895 5,271 31% Property, plant & equipment 6,736 6,828 -1% Deferred exploration costs 23,158 29,153 -21% Others 1,873
Slide 12: Contribution to government, community, and environment vs net income
Contribution to government, community, and environment vs net income Taxes, royalties and fees EPEP SDMP Net income/loss P1.6B P703M P312M P776M P1.9B P1.9B P1.9B P1.7B P1.3B (P311M) 2012 2013 2014 2015 2016 12
Slide 13: Recipient of International Certifications
Recipient of International Certifications Padcal Mine Silangan Project International Organization Occupational Health Safety for Standardization Management System (ISO 14001:2004) (OSHAS 18001:2007) International Organization Environmental for Standardization Management (ISO 14001:2004) 13 Environme
Slide 14: Silangan Update
Silangan Update • Definitive Feasibility Study (DFS) ongoing and will be completed soon (notwithstanding DENR pronouncement) • MPSA is valid and legal: • not within any proclaimed watershed forest reserves or critical watersheds, where mining is prohibited • issued following all relevant legal requi
Slide 15: PXP Energy Corp.
X MINING ARS MINING PXP Energy Corp. — YEARS — Sf RESPONSIBLE MINING
Slide 16: Financial Highlights
Financial Highlights % Inc (in PhP millions) 2016 2015 (Dec) Gross revenue P101.6 P172.3 (41.0) Cost and expenses 170.8 326.8 (47.7) Income (loss) from operations (69.2) (154.5) (55.1) Other income (charges) 20.5 10.5 95.2 Reported net income (loss) (P36.4) (P144.0) (74.7) • 41.0% decline in petrole
Slide 17: Financial Position
Financial Position ASSETS (in PHP millions) As of Dec 31, As of Dec 31, % Inc (Dec) 2016 2015 Cash & cash equivalents ₱573 ₱526 8.9% Receivables and other CA 96 144 (33%) Current assets 669 670 (0.2%) Deferred exploration costs & other NCA 6,663 6,558 1.6% Total assets ₱7,332 ₱7,228 1.4% LIABILITIES
Slide 18: Operational Updates
Operational Updates SC 72 Recto Bank (Forum 70%) Under Force Majeure (FM) since 15 December 2014 Forum will have 20 months upon lifting of the FM to drill the two (2) commitment wells SC 75 NW Palawan (PXP 50%) Under FM since 27 December 2015 Sub-Phase 2 will have a term of 18 months upon li
Slide 19: Operational Updates
Operational Updates SC 14C1 Galoc (Forum 2.27%) Target drilling of Galoc- 7 well is in March 2017, to appraise the Mid-Galoc Prospect (north of the producing Galoc Field) Full field development (Phase 3) will be contingent on the outcome of appraisal well Expected to add 8 mmbo of proven reser
Slide 20: Thank you
Thank you End of presentation 20