Philex Completes Padcal Upgrades as Q2 Profit Doubles on Metal Rally

Padcal Plant Back Online

Philex Mining Corp. has finished rehabilitation of the secondary and tertiary crushing plant at its Padcal operation in Benguet, positioning the company to maintain output through the remainder of 2026. The upgrade addresses equipment constraints that had limited throughput at the site, which has been in continuous production for nearly 68 years.

The Manila-listed miner expects sustained operations at Padcal for the rest of the year, supported by the completed plant work and favorable commodity prices. Gold and copper have both rallied in recent months, lifting margins across the sector.

Earnings Jump on Price Tailwinds

Philex reported net income of P392 million in the second quarter, up from P171 million in the same period of 2025. Revenue climbed 30 percent to P2.423 billion from P1.86 billion year-on-year, according to the company.

The Padcal mine produced 1.56 million tons of ore during the quarter, yielding 4,011 ounces of gold and 3.39 million pounds of copper. Realized copper prices averaged $6.23 per pound, a 52 percent increase from $4.09 the prior year. Gold prices averaged $4,136 per ounce in the April-to-June period, 65 percent higher than the $2,504 recorded in the second quarter of 2025.

Those price gains more than offset the modest volumes, underscoring the leverage Philippine miners have to global metal markets. Copper demand has been buoyed by electric-vehicle and renewable-energy infrastructure buildouts, while gold has attracted safe-haven flows amid geopolitical uncertainty.

Silangan Commissioning on Track

Philex's Silangan project in Mindanao continues to advance toward commercial production. EEI Corp., the general contractor for the process plant, has been handing over completed sections to Silangan Mindanao Mining Co., a Philex subsidiary.

Silangan Mindanao and lead consultant Ausenco Pty. Ltd. are conducting progressive commissioning of the plant, with full completion targeted for the fourth quarter of 2026. Once operational, Silangan will diversify Philex's production base and reduce reliance on the aging Padcal deposit.

The Silangan ore body holds copper, gold, and silver reserves, and the project has been designed for an initial throughput of 10 million tons per year. Bringing it online will mark a significant expansion for Philex, which has historically been one of the Philippines' largest gold producers.

Outlook Hinges on Prices, Execution

Philex's near-term performance will depend on two factors: sustaining Padcal output through the upgraded crushing circuit, and completing the Silangan ramp-up without delays or cost overruns. The company has flagged continued strength in metal prices as a tailwind for profitability, though commodity markets remain volatile.

The rehabilitation at Padcal addresses a bottleneck, but the mine's age means ongoing capital investment will be required to maintain production. Silangan offers a longer-term growth path, provided the commissioning process stays on schedule and the project achieves design throughput.

Philippine mining has faced permitting and community-relations challenges in recent years, and Philex will need to manage stakeholder expectations as it scales up at Silangan. The company's ability to deliver on both projects will shape its competitive position in Southeast Asia's mining sector.