MANILA, Philippines — Philex Mining Corp., one of the country’s oldest and largest gold and copper producers, faced a challenging start to 2026. The company reported a net loss for the first quarter, a sharp reversal from its profitable performance a year ago, primarily driven by heavy spending on mine restoration and aging infrastructure maintenance.
Despite steady global metal prices, the high cost of keeping its long-running operations sustainable has weighed heavily on the company’s bottom line.
In its latest regulatory filing, Philex revealed that while gross revenues remained relatively stable due to consistent copper and gold output, operating expenses surged significantly. The main culprit was a planned increase in “restoration and maintenance expenses” for its Padcal mine in Benguet.
As the Padcal mine nears its projected end-of-life—currently extended to 2027—the company is investing more in environmental rehabilitation and the upkeep of aging equipment to ensure safety and regulatory compliance.
For years, the Padcal mine has been the backbone of Philex’s operations. However, the costs associated with extracting ore from deeper, older levels of the mine have become increasingly expensive.
“The transition period we are in requires substantial capital to maintain our commitment to responsible mining,” the company stated in its financial review. “While these restoration expenses impact our short-term profitability, they are essential for our long-term environmental and social license to operate.”
With Padcal winding down, the company is pinning its hopes on the Silangan Gold and Copper Project in Surigao del Norte. Philex is currently fast-tracking the development of Silangan, which is touted as one of the most significant mining projects in the Philippines.
Investors are closely watching the progress of Silangan, as its eventual commissioning is expected to replace the revenue stream from Padcal and return the company to a position of sustained growth.
The mining sector in 2026 continues to navigate a complex environment of shifting global demand and localized operational hurdles. For Philex, the immediate focus remains on balancing the high costs of responsible mine closure at Padcal while securing the funding necessary to bring Silangan online by its target date.
