Philex Mining Corporation reported that its Padcal copper-gold mine in Benguet produced gold, silver and copper ore worth an estimated P810 million in September 2009, up 10 percent from the production worth about P734 million in the same month last year.

The September 2009 production raises the total output for the first nine months of the year to 6.1 million tons of ore with an estimated value of P7.01 billion.

In a disclosure to the Philippine Stock Exchange (PSE) yesterday, Philex chief executive officer Walter Brown said that, during the month, the Padcal mine delivered 673,037 DMT of ore.

Based on previous disclosures, this is 34 percent higher than the 503,060 tons of ore in September 2008.

The ore output in September 2009 resulted in 5,202 DMT of concentrates containing 55.35 grams per DMT of gold, 23.67 percent copper and 55.66 grams per DMT of silver.

This, in turn, led to a gold production 290,293 grams (9,333 ounces). Philex also produced as other products 1.23 million kilograms (2,714,543 pounds) of copper, and 289,703 grams (9,314 ounces) of silver.

The estimated value of the month’s production is P810 million of which P444 million is from gold, P360 million from copper, and P7 million from silver.

This is based on provisional metal prices of $998.50 per ounce gold, $2.78 per pound copper and $16.45 per ounce silver at the exchange rate of P47.59 to $1.00.

Philex reported that it shipped gold, silver and copper concentrates worth P6.93 billion for the first nine months of the year.

Philex has announced that its Padcal mine's projected operating life has been extended by another three years, from the previously declared 2014 to 2017, based on the proved reserves of the mine as of June 30, 2009.

The firm said the Padcal mine has reserves of 74 million tons, at assumed metal prices of $800 per ounce of gold and $2.00 per pound of copper and at copper equivalent cut-off of 0.36 percent.

Philex has also doubled its budgeted net income for 2009 to P3 billion from P1.5 billion, from profits of P2.8 billion earned in 2008, on the back of stronger gold and copper prices.

The firm explained that the higher projection is based on the currently prevailing level of metal prices at around $950 per ounce gold and $2.50 per pound copper.