Philex Mining Corp. · PSE:PX

Philex Mining — H1 2016 Earnings Presentation

20 slides from Philex Mining's earnings presentation, Jul 28, 2016

  1. Slide 1: First Half 2016 Operating and Financial Highlights

    First Half 2016 Operating and Financial Highlights 28 July 2016

  2. Slide 2: 1H2016 Highlights

    1H2016 Highlights  1H2016 Core Net Income up 49% to P774 million  1H2016 Net Income up 34% to P757 million  Declaration of P0.03/share cash dividends  US$6.5 million short-term debt retired in 1H2016  Silangan Project ISO 14001:2004 Certification for EMS in June 2016  Distribution and payment

  3. Slide 3: m) ) ® = mH S a a © med ® =

    m) ) ® = mH S a a © med ® =

  4. Slide 4: Operating Statistics

    Operating Statistics 1H2016 1H2015 Inc (Dec) Tonnes Milled ('000) 4,704 4,473 5%  Better efficiency and higher Operating Days 180 178 1% number of operating days Production Gold – ozs 49,589 53,689 -8%  Lower gold grade Copper - lbs ('000) 17,341 16,891 3%  Increase in tonnage Recovery Gold 81% 8

  5. Slide 5: Monthly Metal Output and Grades

    Monthly Metal Output and Grades Gold Copper Output (ounces) Grade (g/t) Output (million pounds) Grade (%) 10,000 0.460 3,300 0.220 0.450 3,100 9,000 0.215 0.440 2,900 0.430 8,000 2,700 0.210 0.420 2,500 7,000 0.410 0.205 2,300 0.400 6,000 2,100 0.200 0.390 0.380 1,900 5,000 0.195 0.370 1,700 4,000 0

  6. Slide 6: Financial Highlights

    Financial Highlights (in PHP million, 1H2016 1H2015 Inc/(dec) unless indicated)  Revenue flat due to: Gross Revenue 4,788 4,802 0% • Copper – increase in output offset Marketing Charges 419 403 4% by low prices • Gold – improved prices offset Cost & Expenses 3,254 3,548 -8% lower production Income

  7. Slide 7: Revenue Breakdown

    Revenue Breakdown Gold Copper Silver 1% 37% 1% 39% 62% 60% 1H2016 1H2015 REVENUE PER PRODUCT (PhP million) 1H2016 1H2015 Inc (Dec) Gold 2,955 2,894 2% Copper 1,795 1,870 -4% Silver 37 38 -3% TOTAL 4,788 4,802 0% 7

  8. Slide 8: Cost and Expenses

    Cost and Expenses Inc (in PHP million) 1H2016 1H2015 (Dec) Production cost  7% decline in operating cost Materials & Supplies 806 819 -2% due to: Power 774 880 -12%  Lower contracted power rates Labor 452 443 2%  More efficient use of raw materials Contracts 133 121 10%  Higher SDMP costs deduct

  9. Slide 9: Breakeven Analysis

    Breakeven Analysis COST STRUCTURE (excluding G&A) 1H2016 1H2015 Variance Cost per Tonne Cash Production Cost 482 522 -8% Depreciation 124 164 -24% Total 606 686 -12% Operating cost* 741 830 -11% Operating Cost per Metal Co-production method (including head office expenses) Gold ($/oz) 942 918 3% Cop

  10. Slide 10: Capital Expenditures

    Capital Expenditures CAPITAL EXPENDITURE PERFORMANCE Oil & gas exploration Other mine exploration Silangan & Kalayaan Padcal & Head Office 1H2016 1H2015 CAPITAL EXPENDITURE BREAKDOWN (PhP million) 1H2016 1H2015 Inc/(dec) Padcal & Head Office 651 780 -17% Silangan & Kalayaan 444 1,682 -74% Other mine

  11. Slide 11: End-June 2016 Financial Position

    End-June 2016 Financial Position ASSETS (in PHP million) As of As of Inc June 30, 2016 Dec 31, 2015 (Dec) Cash & cash equivalents 349 1,009 -65% Assets held for distribution 7,276 - Others 4,210 4,263 -2%  Increase in current Current assets 11,885 5,271 225% assets due to PP&E 6,423 6,828 -6% prese

  12. Slide 12: m) ) ® = mH S a > 2) Son ® c LL

    m) ) ® = mH S a > 2) Son ® c LL

  13. Slide 13: Financial Highlights (PXP Energy)

    Financial Highlights % Inc (in PhP millions) 1H2016 1H2015 (Dec) Gross revenue 59 83 (29%) Cost and expenses 90 179 50% Income (loss) from operations (31) (96) 68% Other income (charges) - 10 (100) Reported net income (loss) (31) (86) 64 • 29% decline in petroleum revenues due to:  Prolonged low cr

  14. Slide 14: Financial Highlights

    Financial Highlights ASSETS (in PHP millions) As of June 30, As of Dec 31, % Inc (Dec) 2016 2015 Cash & cash equivalents 607 P526 15 Receivables and other CA 95 144 -30 Current assets 701 670 5 Deferred exploration costs & other NCA 6,524 6,558 -1 Total assets 7,226 7,228 0 LIABILITIES AND STOCKHOLD

  15. Slide 15: 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 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 liftin

  16. Slide 16: Operational Updates

    Operational Updates SC 74 Linapacan Block (PXP 70%)  Transferred from Pitkin to PXP in 2016; sub-Phase 2 started on 13 February 2016  Completed acquisition of 1,614 km of 2D seismic data last 10 June 2016, together with marine gravity and magnetic data  Processing of seismic data is ongoing SC 14

  17. Slide 17: Silangan Project

    Silangan Project

  18. Slide 18: Project Status

    Project Status • 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 • Feasibility Study undergoing parallel peer revi

  19. Slide 19: Awards and Certification

    Awards and 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

  20. Slide 20: Thank you

    Thank you End of presentation

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