First Quarter 2019
Financial and Operating Results08 May 2019
2
First Quarter 2019 Highlights
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Concentrated efforts to maximize the cash generation capabilities
of Padcal towards the end of mine life
Reported net income of P206 million and core net loss of P112
million
Consolidated EBITDA at P217 million
Controlled expenses resulting from cost containment initiatives
implemented across the business
Silangan actively working to complete required underground
mining permits
Ongoing definitive feasibility studies expected to conclude by
early 3Q 2019
Operating Statistics
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1Q 2019 1Q 2018 +/-
Tonnes Milled (‘000) 1,832 2,197 -17%
Production:
Gold – oz 10,493 17,947 -42%
Copper – lbs (‘000) 5,727 7,073 -19%
Recovery:
Gold 74% 77% -3%
Copper 81% 79% -2%
Ore Grade:
Gold – gms/dmt 0.239 0.329 -27%
Copper - % 0.175 0.185 -5%
Prices:
Gold – (US$/oz) 1,304 1,338 -3%
Copper – (US$/lb) 2.96 3.10 -4%
Tonnes Milled: Unscheduled
maintenance of critical mining
equipment and forest fire incidents
Production: Diminishing ore grades
and lower gold recovery
Financial Summary
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(in Php mn) 1Q 2019 1Q 2018 +/-
Gross Revenues 1,613 2,373 -32%
Smelting Charges 137 207 -34%
Net Revenues 1,476 2,165 -32%
Costs and Expenses 1,566 1,697 -8%
Other Income (Charges) 294 (35) -
Income Tax (Benefit) (3) 131 -
Net Income 206 303 -48%
Core Net Income (Loss) (112) 346 -
EBITDA 217 910 -76%
Margins:
EBITDA Margin (%) 15% 42% -27%
Net Income Margin (%) 14% 14% -
Revenues: Lower tonnage and
marginal ore grades
Cost and Expenses: Continuous
implementation of cost saving
measures across the business
Other Income (Charges): Reversal
of previously written-off receivables
258
369
19937
1342
1Q 2019 1Q 2018
CAPEX Distribution(in Php Mn)
Padcal Silangan Other Mine Exploration
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Capital Expenditure
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470448
Balance Sheet
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(in Php mn) 1Q 2019 FY 2018
Cash & Cash Equivalents 262 871
Receivables & Others 3,178 3,582
Total Current Assets 3,440 4,453
Property, Plant & Equipment 4,987 5,404
Deferred Exploration Costs 25,771 25,448
Others 5,401 5,406
Total Assets 39,600 40,711
Short-Term Debt 2,153 2,156
Others 2,709 4,104
Total Current Liabilities 4,862 6,260
Bonds Payable 7,419 7,333
Deferred Tax Liabilities & Others 2,782 2,790
Total Liabilities 15,693 17,012
Total Equity 23,907 23,699
Total Assets: Silangan project
represents more than 60% of total
assets
Subscription Payable: Related to
share subscription in PXP Energy
PXP Energy Corporation
Financial Highlights and
Operational Updates
• 3% decrease in gross revenue due to:
Slightly higher volume offset by lower crude price
• 13% increase in cost and expenses due to:
Higher depletion charge
Accrual of expenses
• Reported net income (from net loss) due to:
Other income (charges); offset by higher cost and expenses
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Financial Highlights – Profit and Loss
(in PhP millions) 1Q 2019 1Q 2018 % Inc (Dec)
Gross revenue ₱ 30 ₱ 31 -3%
Cost and expenses 47 41 13%
Loss from operations (17) (11) 59%
Other income - net 24 2 908%
Reported net income (loss) ₱ 7 ₱ (8) -183%
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Financial Highlights – Financial Position
As of Mar 31,
2019
(Unaudited)
As of Dec 31,
2018
(Audited)
% Inc
(Dec)
Cash & cash equivalents ₱ 332 ₱ 342 -3.1%
Receivables and other CA 82 86 -5.7%
Current assets 413 429 -3.6%
Deferred exploration costs & other NCA 6,841 6,818 0.3%
Total assets ₱ 7,254 ₱ 7,247 0.1%
As of Mar 31,
2019
(Unaudited)
As of Dec 31,
2018
(Audited)
% Inc
(Dec)
Due to affiliate ₱ 739 ₱ 2,125 -65.2%
Accounts payable & others 32 34 -5.9%
Current liabilities 772 2,160 -64.3%
Deferred income tax liability 1,114 1,113 0.1%
Others 202 192 5.0%
Non-current liabilities 1,316 1,305 0.8%
Total l iabilit ies 2,088 3,465 -39.8%
Capital stock 1,960 1,960 0.0%
Additional Paid-in Capital 2,818 2,821 -
Subscription receivable (924) (2,311) -
Deficit (1,363) (1,374) -0.8%
Others 271 276 -1.7%
Non-controlling interest 2,404 2,410 -0.2%
Total equity 5,167 3,782 36.6%
Total Liabilit ies and SHE ₱ 7,254 ₱ 7,247 0.1%
ASSETS (in PHP millions)
LIABILITIES AND STOCKHOLDERS’ EQUITY
(in PHP millions)
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Operations Update
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SC 6B
SC 14C2
SC 6A
Cadlao
SC 14C1
SC 14B
SC 14A
TUMBES BASIN, OFFSHORE PERU
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SC 72 Recto Bank (Forum 70%) Under Force Majeure (FM) since December 15, 2014.
Forum will have 20 months upon lifting of the FM to drill the two (2) commitment wells.
Contracted DownUnder Geosolutions (DUG) to conduct broadband PSDM reprocessing
of 565 sq. km 3D seismic data. The reprocessing will be completed in 2Q 2019.
SC 74 Linapacan Block (PXP 70%) The gravity modeling and seismic interpretation of MC2D data are underway.
Ongoing paleodating of rock samples collected during the fieldwork in the Calamian
Islands last June 2018 by the UP National Institute of Geological Sciences.
The SC 74 and SC 14C2 (West Linapacan) Consortia are conducting Rock Physics and
Quantitative Inversion (QI) studies over the Linapacan and West Linapacan areas with
Ikon Science as contractor.
SC 75 NW Palawan (PXP 50%) Under FM since December 27, 2015.
Sub-Phase 2 will have a term of 18 months upon lifting of FM with the acquisition of 1,000
sq km of 3D seismic data as the minimum work commitment.
SC 40 North Cebu (Forum 66.67%) Processing and interpretation of gravity data that was acquired in April 2018 is underway.
Operations Update 1/2
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SC 14C1 Galoc (Forum 2.27%) Continued production in Galoc Field. A total of 1.2 million barrels of oil (mmbo) was
produced in 2018. Cumulative production from October 2008 to April 2019 stood at
21.60 million barrels of oil.
There have been three (3) liftings conducted in 2018. The average Galoc oil price
realized for the 3 liftings was 35% higher than last year’s average (US$74.15/barrel in
2018 versus US$ 54.80/barrel in 2017). Three liftings are expected this year. The first
one was completed last January 2019.
Peru Block Z-38 (Pitkin 25%) The FM in Block Z-38, which was imposed on September 01, 2013, was lifted by
Perupetro S.A. on September 12. 2018. The current Third Exploration Period will now
expire on July 01, 2020.
The Peruvian government has already approved the farm-in of Tullow Oil to Z-38. A
Supreme Decree was signed on March 18, 2019 and published in their official gazette
the following day. The participating interests in Z-38 are now as follows: Karoon Gas –
40%, Tullow Oil – 35%, and Pitkin Petroleum – 25%.
Preparations are underway for the implementation of a drilling program that will complete
the Consortium's well obligations under the Third Exploration Period.
Operations Update 2/2
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