Philex Mining Corp. · PSE:PX
Philex Mining — 9M2014 Earnings Presentation
22 slides from Philex Mining's earnings presentation, Oct 29, 2014
Slide 1: Analyst Briefing Nine Months 2014 Results
Analyst Briefing Nine Months 2014 Results 29 October 2014
Slide 2: Presentation Outline
Presentation Outline (3) Operating and Financial Highlights (16) Update on Silangan (20) Oil and Gas Exploration
Slide 3: Operating and Financial Highlights
OPERATING AND FINANCIAL HIGHLIGHTS 3
Slide 4: 9M2014 Operating Statistics
9M2014 Operating Statistics Increased tonnage due to % Inc 9M2014 9M2013 higher operating days (Dec) Tonnes Milled ('000) 7,161 5,455 31 Lower ore grades consistent Operating Days 269 207 30 Copper Concentrate (DMT) 52,515 43,133 22 with the life-of-mine Ore Grade production program Gold - gms/D
Slide 5: 9M2014 Financial Highlights
9M2014 Financial Highlights 8% growth in revenues due to: (PhP million, % Inc increase in operating days but unless indicated) 9M2014 9M2013 offset by the expected drop in (Dec) Gross Revenue 8,378 7,730 8 ore grades and decline in metal Income from Operations 1,312 2,322 (43) prices EBITDA 2,51
Slide 6: 9M2014 Revenue Breakdown
9M2014 Revenue Breakdown Gold Revenue Share per Product Copper (PhP million) Silver Petroleum & other 3% 8,378 7,730 2% 1% 42% 1% 43% 8% 54% 54% 9M2014 9M2013 PRODUCT BREAKDOWN (PhP million) % Inc 9M2014 9M2013 (Dec) Gold 4,493 4,179 8 Copper 3,549 3,330 7 Silver 61 63 (4) 6 Petroleum & others 276 1
Slide 7: 9M2014 Cost and Expenses
9M2014 Cost and Expenses (PhP million) 9M2014 9M2013 % Inc 30% increase in total costs (Dec) Production cost and expenses in line with the Materials & Supplies 1,261 880 43 increased tonnage (+31%) Power 1,301 819 59 Labor 856 567 51 44% growth in depreciation Contracts 387 233 66 Others 184 116
Slide 8: 9M2014 Capital Expenditures
9M2014 Capital Expenditures CAPITAL EXPENDITURE PERFORMANCE Oil & gas exploration Other mine exploration Silangan & Kalayaan Padcal & Head Office 9M2014 9M2013 CAPITAL EXPENDITURE BREAKDOWN (PhP million) 9M2014 9M2013 Padcal & Head Office 1,409 1,224 Silangan & Kalayaan 2,779 2,186 Other mine explor
Slide 9: 3Q2014 Financial Highlights
3Q2014 Financial Highlights 9% drop in revenues due to (PhP million % Inc unless indicated) 3Q2014 2Q2014 (Dec) 1Q2014 decline in metal prices Gross Revenue 2,596 2,868 (9) 2,913 11% improvement in Income from Operations 423 463 (9) 426 costs due to cost-control EBITDA 770 875 (12) 871 measures
Slide 10: 3Q2014 Cost and Expenses
3Q2014 Cost and Expenses (in million pesos) 3Q2014 2Q2014 % Inc 1Q2014 11% drop in operating cost (Dec) due to cost-management Production cost measures Materials & Supplies 432 412 5 417 Power 435 440 (1) 426 Power: isolation of slime Labor 264 279 (5) 312 processing and feed Contracts 96 145 (3
Slide 11: Financial Position
Financial Position ASSETS (in million pesos) As of As of Dec % Inc September 30, 2014 31, 2013 (Dec) Increase in deferred Cash & cash equivalents 2,340 4,081 (43) Receivables & others 4,338 4,306 1 exploration costs due to Current assets 6,678 8,387 (20) additional investments in Property, plant &
Slide 12: Update on Silangan
UPDATE ON SILANGAN 16
Slide 13: Silangan Timetable
Silangan Timetable Obtain remaining government Complete Definitive permit Feasibility Study approvals Satisfy requirements of Finalize project financing CAPEX and Reduce project risks from: OPEX Metallurgy: through bulk sample pilot plant test work program estimates Hydrogeology: through con
Slide 14: De-risking the Project
De-risking the Project Continue Ore Characterization Drive • Driving tunnel towards ore body Complement results of ground drilling Raise confidence level Improve predictability of ore treatment to increase recoveries Analyze metallurgy better • Involved Lycopodium Minerals as consultants Dev
Slide 15: De-risking the Project
De-risking the Project Finalize 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 Develop initial mining plan • Appointed AMC as pac
Slide 16: Oil and Gas Exploration
OIL AND GAS EXPLORATION 20
Slide 17: 9M2014 Financial Highlights (Oil and Gas)
9M2014 Financial Highlights % Inc (PhP million, unless indicated) 9M2014 9M2013 (Dec) Gross Revenue 276 156 76 Cost and Expenses 337 359 (6) Income from Operations (61) (203) (70) Other Income (charges) (314) (29) (982) Reported Net Income (377) (190) (98) 76% growth in revenues due to Galoc Phase
Slide 18: Exploration Cost
Exploration Cost Oil and Gas Exploration Major Assets (in million pesos) Amount PXP Parent SC 75 (Area 4) 69 Pitkin Peru Block Z-38 3,156 SC 53 (Mindoro) 538 Peru Block XXVIII 79 Forum SC 72 (Reed Bank) 800 SC 40 (North Cebu Block) 156 Total 4,798 22
Slide 19: Major Assets in the Philippines
Major Assets in the Philippines Pitkin 35% Exploration Sub-Phase 2 Forum 2.2% Production Forum 67% Philex 50% Exploration & Production Exploration Sub-Phase 1 Pitkin 70% Exploration Sub-Phase 1 Forum 70% Exploration Sub-Phase 2 23 23
Slide 20: Major Assets in Peru
Major Assets in Peru Pitkin 25% Third Exploration Period CONFIDENTIAL Pitkin 100% Second Exploration Period 24 24
Slide 21: Indicative Exploration and Development Timelines
Indicative Exploration and Development Timelines 2014 2015 2016 2017 2018 Peru Z-38 Pitkin 25% Peru Block XXVIII Pitkin 100% SC53 Mindoro Development Pitkin 35% Decision? SC74 NW Palawan Pitkin 70% SC72 Reed Bank Forum 70% SC14C2 W. Lina. Development Forum 2.2% Decision? SC40 Cebu Forum 40% SC75 NW
Slide 22: End of Presentation
End of Presentation Thank you