Philex Mining Corp. · PSE:PX

Philex Mining — FY2017 Earnings Presentation

18 slides from Philex Mining's earnings presentation, Feb 28, 2018

  1. Slide 1: FY2017 Operating and Financial Highlights

    FY2017 Operating and Financial Highlights 28 February 2018

  2. Slide 2: 2017 Highlights

    2017 Highlights • FY2017 CORE NET INCOME AT P1.686 BILLION (FY2016: P1.657 BILLION) • REPORTED NET INCOME AT P1.658 BILLION (FY2016: P1.567 BILLION) • CASH DIVIDEND OF P0.04/SHARE DECLARED, 2017 TOTAL CASH DIVIDEND AT P0.08/SHARE (FY2016: P0.07/SHARE) • PARENT COMPANY DEBT DOWN TO US$49 MILLION 2

  3. Slide 3: Operating Highlights

    Operating Highlights Inc FY2017 FY2016 (Dec) Tonnes Milled ('000) 8,673 9,359 (7%) Production Gold – ozs 84,638 103,304 (18%) • Tonnage affected by Copper - lbs ('000) 30,118 34,961 (14%) bouldery ore and other production-related issues Metal Recovery (%) Gold 80.5 82.4 (5%) Copper 82.2 82.1 0% Ore

  4. Slide 4: Financial Highlights

    Financial Highlights (in PHP million, FY2017 FY2016 Inc/(dec) unless indicated) • Revenue affected by low Gross Revenue 9,985 10,272 (3%) Smelting Charges 842 893 (6%) Cash Cost & Expenses 5,227 5,440 (4%) metal output, partially Depreciation, depletion & 1,551 1,460 6% offset by higher metal amorti

  5. Slide 5: Revenue Breakdown

    Revenue Breakdown Revenue Performance 12,000 1% 1% 10,000 (PhP million) FY2017 FY2016 Inc/(dec) 8,000 39% 45% Gold 5,432 6,209 (13%) Copper 4,475 3,976 13% 6,000 Silver 77 86 (10%) TOTAL 9,984 10,272 (3%) 4,000 60% 54% 2,000 0 2017 2016 Gold Copper Silver 5

  6. Slide 6: Costs and Expenses

    Costs and Expenses Inc (in PHP million) FY2017 FY2016 (Dec) Production cost • Power cost down due to Materials & Supplies 1,810 1,681 8% Power 1,234 1,468 -16% Labor 894 893 0% lower consumption Contracts Others 250 224 306 267 -18% -16% • Contracts lower due to Cash Production cost 4,412 4,614 -4%

  7. Slide 7: Capital Expenditures

    Capital Expenditures Capital Expenditure Performance Other mine exploration Silangan & Kalayaan Padcal & Head Office P2.6B (PhP million) P2.4B FY2017 FY2016 change Padcal & Head Office 1,679 1,589 6% Silangan & Kalayaan 561 860 -35% Other mine 194 183 6% exploration TOTAL 2,433 2,632 -8% 7

  8. Slide 8: Financial Position

    Financial Position ASSETS (in PHP million) As of As of Inc (Dec) Dec 31, 2017 Dec 31, 2016 Cash & cash equivalents 584 458 -55% Receivables & others 5,683 6,035 51% • Sustained investments Current assets Property, plant & equipment 6,267 6,721 6,493 6,736 31% -1% in Silangan and Padcal Deferred expl

  9. Slide 9: Social Development Management Program

    Social Development Management Program 135 117 2016 2017 9

  10. Slide 10: Contributions vs Net Income

    Contributions vs Net Income SDMP Taxes, fees, and Net other income charges P1.56B P1.66B 10

  11. Slide 11: Responsible Mining

    PAP ENERGY -P PHILEX MINING CORPORATION —— YEARS— ef RESPONSIBLE MINING

  12. Slide 12: Financial Highlights – Profit and Loss

    Financial Highlights – Profit and Loss % Inc (in PhP millions) FY2017 FY2016 (Dec) Gross revenue ₱ ₱ 3% Cost and expenses 158 171 -7% Loss from operations (54) (69) -22% Other income (charges) (3) 33 -110% Reported net loss ₱ ₱ 57% • 3% decrease in petroleum revenues due to:  Higher oil price offse

  13. Slide 13: Financial Highlights – Financial Position

    Financial Highlights – Financial Position ASSETS (in P HP millions) As of Dec 3 1 , As of Dec 3 1 , % In c 2017 2016 (Dec) Cash & cash equivalents ₱ 0 ₱ -21.5% Receivables and other CA 76 96 -21.0% Current assets 526 669 -21.4% Deferred exploration costs & other NCA 6,703 6,663 0.6% To ta l a ssets

  14. Slide 14: Operations Update

    Operations Update 28 February 14 2018 14

  15. Slide 15: Operations Update 1/3

    Operations Update 1/3 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 up

  16. Slide 16: Operations Update 2/3

    Operations Update 2/3 SC 40 North Cebu (Forum 66.67%)  Completed the plugging and abandonment (P&A) of L95-1 well in Libertad Field.  The approved work program for 2018 is a detailed land gravity survey in northern Cebu, which will start in April 2018. SC 14 Matinloc and Tara Blocks (Forum 12.406%

  17. Slide 17: Operations Update 3/3

    Operations Update 3/3 SC 6A Octon Block (PXP 5.56% / Forum 5.56%)  Completed the Pre-Stack Depth Migration (PSDM) processing and quantitative interpretation (QI) of the 2013 3D seismic data.  The work program for 1H 2018 includes 3D seismic interpretation, which will integrate the results of the Q

  18. Slide 18: Thank you very much

    Thank you very much End of presentation

Philex Mining — FY2017 Earnings Presentation on 6ix