Philex Mining's Silangan Project Sees Break-even Costs Crushed by Surging Metal Prices
Philex Mining's Silangan mine is nearing production, but its opening has slipped from the third quarter to the end of the year. The high-grade copper and gold mine in Surigao del Norte is expected to open by year-end, according to First Pacific Co., Philex's biggest shareholder.
The delay comes at a favorable time for metal prices, which have surged in recent months. Philex realized an average of $4,396 per ounce for gold and $6.05 per pound for copper in the first half, far exceeding the break-even costs of $1,000 per ounce of gold and $2 per pound of copper estimated for Silangan.
With production at Philex's aging Padcal mine declining due to deteriorating ore grades, Silangan will play an increasingly important role. The first phase of Silangan has a projected mine life of 28 years, with funding already completed.