analysts’ briefing - philex mining
TRANSCRIPT
1Q2020 Highlights
Philex swings to Php103 million Core Net Income in 1Q2020 from
Core Net Loss of Php112 in 1Q2019, driven by the positive
momentum in the business operations beginning 3Q2019.
Better ore grades for both gold and copper, resulting in higher
metal output
Favorable gold prices continue to push operating revenues higher
by 15%
Operational improvements reduced cash and non-cash production
cost and expenses
Core EBITDA significantly increased by 93%
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Production Performance
Tonnes Milled: Higher
tonnage due to continuous
improvement in
operational efficiencies
Production: Higher metal
output due to higher ore
grades and recovery
Gold prices: Highest
realized prices since
2012.
1Q2020 1Q2019 +/-
Tonnes Milled (‘000) 1,969 1,832 7%
Production:
Gold – ozs 14,159 10,493 35%
Copper – lbs (‘000) 6,738 5,727 18%
Recovery:
Gold 78% 74% 5%
Copper 83% 81% 2%
Ore Grade:
Gold – gms/dmt 0.283 0.239 19%
Copper - % 0.188 0.175 7%
Average Realized Prices:
Gold – (US$/oz) 1,600 1,304 23%
Copper – (US$/lb) 2.35 2.96 -21%
3
Financial Results Summary
• Operating Income:
Continuous improvement in
metal production and
favorable gold prices.
• Core Net Income: A
complete turnaround in Core
Net Income of Php103
million from last year’s core
net loss of Php112 million.
(in Php million) 1Q2020 1Q2019 +/-
Gross Revenues 1,860 1,613 15%
Smelting Charges 147 137 7%
Net Revenues 1,713 1,476 16%
Costs and Expenses 1,552 1,566 -1%
Operating Income (Loss) 161 (90) -279%
Other (Charges) Income (42) 293 -114%
Net Income 102 206 -50%
Core Net Income (Loss) 103 (112) -192%
Core EBITDA 419 217 93%
Margins: EBITDA Margin (%) 23% 13% 10%
Net Income Margin (%) 6% 13% -7%
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Capital Expenditures
• 1Q2020 Capex of Php307
million mainly to cover
sustaining capex for Padcal’s
mine development
• Silangan Project: For pre-
development works
• On going search for Silangan
strategic partners
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• Total Assets: Silangan
Project accounts for 65% of
total assets
• Short-Term Debt:
Additional loan availments
for Silangan’s pre-
development works
Balance Sheet
(in Php million) 31-Mar-20 31-Dec-19
Cash & Cash Equivalents 545 796
Receivables & Others 2,419 2,125
Total Current Assets 2,964 2,921
Property, Plant & Equipment 3,200 3,185
Deferred Exploration Costs 26,779 26,616
Others 5,032 5,177
Total Assets 37,975 37,899
Short-Term Debt 2,589 2,532
Others 2,221 2,397
Total Current Liabilities 4,810 4,929
Bonds Payable 7,835 7,743
Deferred Tax Liabilities & Others 2,306 2,258
Total Liabilities 14,952 14,930
Total Equity 23,023 22,969
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Financial Highlights – Profit and Loss
8 28 May 2020
• 79% decrease in gross revenue due to:
38% lower volume lifted in SC14 C-1 Galoc
60% drop in average crude sale price
• 65.4% decrease in cost and expenses due to:
Lower depletion in Galoc
• Net loss during the current year vs prior year due to:
Decrease in oil revenues and impairment in Galoc resulting from the
global oil price crash in late Q1
(in PhP millions)
Mar 31,
2020
Mar 31,
2029
% Inc
(Dec)
Gross revenue ₱ 6 ₱ 30 -79%
Cost and expenses 27 47 -43%
Loss from operations (21) (17) 20%
Other income (charges) - net (20) 24 -182%
Reported net income (loss) ₱ (40) ₱ 7 -677%
Financial Highlights – Financial Position
9 28 May 2020
As at Mar 31,
2020
As at Dec 31,
2019
% Inc
(Dec)
Cash & cash equivalents ₱ 188 ₱ 246 -23.6%
Receivables and other CA 52 57 -8.4%
Current assets 240 303 -20.7%
Deferred exploration costs & other NCA 6,545 6,563 -0.3%
Total assets ₱ 6,785 ₱ 6,865 -1.2%
As at Dec 31,
2019
As at Dec 31,
2018
% Inc
(Dec)
Accounts payable & others 44 75 -41.6%
Current liabilities 44 75 -41.6%
Deferred income tax liability 1,077 1,077 0.0%
Others 197 197 0.0%
Non-current liabilities 1,274 1,274 0.0%
Total l iabilit ies 1,318 1,349 -2.3%
Capital stock 1,960 1,960 0.0%
Additional Paid-in Capital 2,817 2,817 -
Subscription receivable (184) (184) -
Deficit (1,676) (1,644) 1.9%
Others 196 210 -6.8%
Non-controlling interest 2,355 2,358 -0.1%
Total equity 5,467 5,517 -0.9%
Total Liabilit ies and SHE ₱ 6,785 ₱ 6,865 -1.2%
ASSETS (in PHP millions)
LIABILITIES AND STOCKHOLDERS’ EQUITY
(in PHP millions)
Operations Update
10 28 May 2020
SC 14C2
SC 6A
Cadlao (SC 6B)
SC 6B
SC 14C1
SC 14B
SC 14A
TUMBES BASIN, OFFSHORE PERU
SC 72 Recto Bank (Forum 70%)
Under Force Majeure (FM) since 15 December 2014 Sub-Phase (SP) 2 with remaining 20 months upon lifting of FM. Minimum work commitment is the
drilling of 2 wells The Sampaguita Field Re-evaluation is ongoing with VGS Consultancy as contractor. The scope of
work includes 3D seismic interpretation of the newly reprocessed PSDM data, update of volume calculation, petrophysics study, economic analysis, and well drilling strategies.
SC 75 NW Palawan (PXP 50%)
Under FM since 27 December 2015 SP 2 with 18 months term will start upon lifting of FM. Minimum work commitment is the
acquisition of 1,000 sq. km of 3D seismic data
SC 74 NW Palawan (PXP 50%)
Under SP 3 until 13 December 2020.
Ongoing Phase 2 of Quantitative Interpretation (QI) study with Ikon Science as Contractor.
Delay in sending out of additional field samples to Core Laboratories Malaysia for paleodating and geochemical analysis due to Enhanced Community Quarantine (ECQ).
PCECP Area 7 Sulu Sea – Under Application (PXP 40%)
No update from the Department of Energy (DOE).
Operations Update 1/2
11 28 May 2020
12
SC 40 North Cebu (Forum 66.67%)
Land gravity survey in Bogo City and Daanbantayan Municipality was conducted from 18 February to 14 March 2020 with 84 stations acquired. The levelling of the same stations carried out by a third-party contractor was completed on 19 March 2020.
Currently conducting gravity reading, coordinates, and elevation corrections.
Data reduction, processing, and interpretation to follow.
SC 14A Nido (Forum 8.468%)
Plug and abandonment (P&A) of the Nido A1 and A2 wells originally planned for April 2020 was suspended due to COVID-19. The current crisis made an impact on Philodrill’s ability to mobilize personnel and equipment for the P&A. The JV is now looking at September 2020 to carry out the P&A, depending on the situation with COVID-19.
Peru Block Z-38 (Pitkin 25%)
Ongoing analysis of Marina-1X drilling results which was drilled from 26 January to 15 February 2020 at a total depth of 3,021 m MD. The well was plugged and abandoned as a dry well.
Drillship Stena Forth left offshore Peru on 25 February 2020 and arrived in Las Palmas on 17 April 2020 after 53 days.
Block Z-38 is currently under the 3rd Exploration Permit (EP) which was originally set to expire on 30 June 2020. On 30 April 2020, Perupetro granted Karoon’s request for a 6 months extension of the 3rd EP to complete post well drilling analysis activities. The expiration of the 3rd EP is now on 31 December 2020.
28 May 2020
Operations Update 2/2