Philex Mining Corp. has secured a foreign investor for its Silangan mine project in Surigao del Norte, ahead of its planned commercial operations next year. Billionaire Manuel V. Pangilinan, chair of Philex, confirmed the investment but did not disclose the investor’s identity or the exact stake acquired. He noted that the investor was particularly drawn to Silangan due to its high-grade ore and its status as a newer mining project.
The investment comes over three years after Silangan Mindanao Mining Corp., a subsidiary of Philex, announced its openness to both foreign and local investors who could bring strategic value to the project. In November, Philex stated that the Silangan mine was on track to produce its first metal output by February 2026, with commercial operations set to begin in the first quarter of the same year. Philex President and CEO Eulalio Austin Jr. emphasized the need to accelerate the project’s development, citing favorable market conditions driven by high metal prices.
Despite strong investor interest in Silangan, Philex faced financial challenges last year, as higher operating expenses offset gains from favorable metal prices and foreign exchange rates. The company’s net income declined by 20% to ₱810.2 million, while revenues dropped by 6% to ₱8.18 billion. Costs and expenses surged by 10% to ₱7.23 billion, primarily due to rising material and supply costs. This year, Philex aims to focus on commissioning Silangan while also addressing the operational challenges of its aging Padcal mine in Benguet.
To finance the first phase of Silangan’s development, Philex raised funds through a $70-million loan from Philippine National Bank, Philippine Bank of Communications, and Security Bank in February 2024. The initial phase of the mine covers the Boyongan ore deposit, which holds an estimated 81 million tons of minable reserves, containing 993 million pounds of recoverable copper and 2.8 million ounces of gold, according to equity research analyst Peter Garnace of Unicapital Securities Inc. Garnace also noted that Philex is considering additional fundraising to develop the second phase of Silangan before the first phase begins commercial operations.
Philex’s stock has reflected growing investor confidence, with its share price surging 153.76% since the start of the year, reaching ₱7.08. Month-to-date, the stock has climbed 53.58%, underscoring strong market optimism over the company’s future prospects.