Philex Mining Corp. · PSE:PX
Philex Mining — FY2014 Earnings Presentation
23 slides from Philex Mining's earnings presentation, Feb 26, 2015
Slide 1: Analyst Briefing Full Year 2014 Results
Analyst Briefing Full Year 2014 Results 26 February 2015
Slide 2: Presentation Outline
Presentation Outline (3) 2014 Significant Developments (4) Operating and Financial Highlights (13) Update on Silangan (17) Oil and Gas Exploration (22) Philex Public Recognition Received
Slide 3: 2014 Significant Developments
2014 Significant Developments Padcal Mine In May 2014, agreed to a settlement of P200 million for local business tax claims with the municipalities of Tuba and Itogon, which host the Padcal site In June 2014, following the payment of P188.6 million to settle environmental obligations claims, the
Slide 4: Operating and Financial Highlights
OPERATING AND FINANCIAL HIGHLIGHTS 4
Slide 5: Operating Statistics
Operating Statistics FY2014 FY2013 Inc (Dec) Tonnes Milled ('000) 9,506 7,738 23% Increased tonnage due to Operating Days 359 299 20% Copper Concentrate (DMT) 70,062 60,582 16% higher operating days Ore Grade Lower ore grades consistent Gold - gms/DMT 0.438 0.503 (13%) Copper - % 0.212 0.236 (10
Slide 6: Financial Highlights
Financial Highlights (in PHP million, FY2014 FY2013 Inc/(dec) Amount unless indicated) Increased revenue from higher Gross Revenue 10,898 10,462 4% 436 operating days, offset by lower Marketing Charges 850 660 29% 190 ore grades and metal prices Cost & Expenses 8,415 7,480 12% 935 (689) Rise in
Slide 7: Revenue Breakdown
Revenue Breakdown Gold Revenue Share per Product Copper (PhP million) Silver Petroleum & other 3% 10,898 10,462 2% 1% 42% 1% 44% 4% 54% 53% FY2014 FY2013 PRODUCT BREAKDOWN (PhP million) FY2014 FY2013 Inc (Dec) Gold 5,889 5,582 6% Copper 4,615 4,580 1% Silver 78 82 (5%) 7 Petroleum & others 316 218 4
Slide 8: Cost and Expenses
Cost and Expenses (in PHP million) FY2014 FY2013 Inc (Dec) Production cost Materials & Supplies 1,847 1,607 15% Power 1,710 1,314 30% Change in mineralogy Labor 1,098 877 25% made it more expensive to Contracts 277 236 18% process minerals Others 212 154 38% Cash Production cost 5,143 4,187 23%
Slide 9: Breakdown of Other Charges - Net
Breakdown of Other Charges - Net (in PHP million) FY2014 FY2013 Inc/(dec) Gain on sale of assets, net of 765 - - expenses Interest income 17 26 (38%) Foreign exchange losses (56) (174) (68%) Insurance proceeds - 1,017 - Interest expense, net (354) (416) (15%) Padcal maintenance cost (440) Writedown
Slide 10: Capital Expenditures
Capital Expenditures CAPITAL EXPENDITURE PERFORMANCE Oil & gas exploration Other mine exploration Silangan & Kalayaan Padcal & Head Office FY2014 FY2013 CAPITAL EXPENDITURE BREAKDOWN (PhP million) FY2014 FY2013 Padcal & Head Office 1,797 1,667 Silangan & Kalayaan 3,709 3,347 Other mine exploration 1
Slide 11: Financial Position
Financial Position ASSETS (in PHP million) As of Dec 31, As of Dec Inc 2014 31, 2013 (Dec) Cash & cash equivalents 5,232 4,081 28% Receivables & others 4,299 4,307 0% Increase in deferred Current assets 9,530 8,387 14% exploration costs due to Property, plant & equipment 7,139 6,880 4% Deferred ex
Slide 12: Cash Flows
Cash Flows (In PHP millions) FY2014 FY2013 Inc/(dec) CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax 1,054 1,075 -2% Adjustments for: Depletion and depreciation 1,691 1,448 17% Gain on sale of asset (765) - Impairment loss on deferred exploration costs and others 570 298 91% Impairment
Slide 13: Update on Silangan
UPDATE ON SILANGAN 13
Slide 14: Silangan Timetable
Silangan Timetable * Presented Pre-Feasibility Study Early works/mine to the Board (August 2014) Obtain remaining development/ government project execution Complete Definitive permit approvals Feasibility Study Q3 2014 2015/ 2016- 2018/2019 -Q4 2015 2016 2018 Production Satisfy requirements of M
Slide 15: De-risking the Project
De-risking the Project Ore characterization drive has reached the ore body • Source of bulk sample for pilot testing to improve predictability of ore treatment and metal recoveries • Complement results of ground drilling • Visual assessment of ground conditions Metallurgical test work • Extensive me
Slide 16: De-risking the Project
De-risking the Project Finalization of hydrogeology studies • Engaged SRK Consulting Finalize results of pump tests to better predict ground water behavior and management Define regional stream water flows & chemistry Design dewatering set-up of mine Mine plan options and optimization • Appoin
Slide 17: Oil and Gas Exploration
OIL AND GAS EXPLORATION 17
Slide 18: Financial Highlights
Financial Highlights % Inc (in PhP million) FY2014 FY2013 (Dec) Gross revenue 308 209 48% Cost and expenses 436 444 (2%) Income (loss) from operations (128) (236) (46%) Other income (charges) (322) 135 - Reported net income (loss) (449) (101) (343%) Core income (loss) (67) (147) (55%) 59% growth i
Slide 19: Exploration Cost and Updates
Exploration Cost and Updates Oil and Gas Exploration Major Assets (in PHP million) 2014 2013 PXP Parent SC 75 (Area 4) 67 3 Exploration activities in 2015 will be focused on SC-72 Pitkin (subject to DOE clearance) and Peru Block Z-38 3,381 3,380 Peru Block Z-38 SC 53 (Mindoro) 321 319 Plans for
Slide 20: Financial Position
Financial Position ASSETS (in PHP million) As of Dec As of Dec % Inc 31, 2014 31, 2013 (Dec) Cash & cash equivalents 1,908 2,621 -27% Others 153 162 -6% Current assets 2,061 2,783 -26% Deferred exploration costs & other 6,436 6,638 -3% NCA Total assets 8,497 9,421 -10% LIABILITIES AND STOCKHOLDERS’
Slide 21: Philex Public Recognition Received
PHILEX PUBLIC RECOGNITION RECEIVED 21
Slide 22: 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 • Corporate Governance Company of the Year • Finalist: CSR Company of the Year (Asia CEO Awards) November 2014 Manila • Gold Award in Financial Perform
Slide 23: End of Presentation
End of Presentation Thank you