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| PX 2Q26 QUARTERLY REPORT |
Philex Mining Corporation (PSE: PX) released its Q2 2026 financial and operating results, marking a dramatic operational and financial recovery after a challenging start to the year. Backed by the complete rehabilitation of key mill infrastructure and sustained tailwinds in global commodity prices, the company flipped its bottom line back into profitable territory while advancing its transformational Silangan copper-gold project.
Here is an analysis of Philex Mining’s financial performance, balance sheet health, cash flows, and key growth drivers.
Financial Performance Overview
1. Income Statement: Operations Back on Track
The second quarter of 2026 proved to be a major turning point for Philex Mining’s operational momentum:
Revenues: Net revenues for Q2 2026 reached ₱2.423 billion, more than doubling (+125%) from ₱1.078 billion in Q1 2026 and rising 30% year-over-year compared to ₱1.860 billion in Q2 2025. Total revenues for the first half (H1) of 2026 stood at ₱3.500 billion.
Net Income Recovery: Consolidated net income rebounded to ₱392 million in Q2 2026, reversing a net loss of ₱592 million in Q1 2026 and growing 129% compared to ₱171 million in Q2 2025. H1 2026 reported a net loss of ₱200 million, primarily due to non-cash foreign exchange adjustments in Q1.
Core Net Income: Core net income (excluding non-recurring/forex impacts) surged to ₱492 million in Q2 2026 (vs. a core net loss of ₱281 million in Q1 2026 and ₱65 million in Q2 2025). H1 2026 core net income climbed 56% year-over-year to ₱212 million.
EBITDA: EBITDA swung sharply to ₱974 million in Q2 2026, compared to negative ₱129 million in Q1 2026 and ₱325 million in Q2 2025.
Operational Recovery at Padcal: Ore processed at Padcal recovered by 68% quarter-on-quarter to 1.56 million tonnes. Gold production leaped 80% to 4,011 ounces, while copper production surged 81% to 3.388 million pounds.
Realized Commodity Prices: * Gold: Averaged US$4,136/oz in Q2 2026 (up 65% YoY from US$2,504/oz in Q2 2025).
Copper: Realized prices rose to US$6.23/lb in Q2 2026 (up from US4.53 in Q1 2026 and US4.09 in Q2 2025).
2. Balance Sheet: Asset Base Expands Amid Project Investments
Philex Mining’s balance sheet reflects ongoing investments into long-term infrastructure, balance-sheet restatements, and short-term liquidity shifts:
Total Assets: Stood at ₱60.863 billion as of June 30, 2026, slightly up from ₱60.367 billion at year-end 2025.
Liquidity & Working Capital: Cash and cash equivalents decreased from ₱4.410 billion at year-end 2025 to ₱1.124 billion as of June 30, 2026, driven by ongoing capital expenditures at Silangan and Padcal. Inventories increased to ₱2.655 billion from ₱1.094 billion. Total current liabilities stood at ₱8.089 billion against current assets of ₱5.058 billion.
Property, Plant, & Equipment (PPE): PPE rose to ₱34.536 billion from ₱31.891 billion at year-end 2025, capturing progress on the Silangan Process Plant construction.
Debt Profile: Long-term debt (net of current portion) remained relatively flat at ₱17.603 billion compared to ₱17.506 billion at end-2025. Short-term loans stood at ₱2.485 billion.
Total Equity: Attributable equity finished at ₱32.960 billion as of June 30, 2026.
3. Cash Flow & Capital Allocation Insights
While the consolidated cash flow statement was not fully detailed in the current Form 17-C, key operating and balance sheet items provide clear cash flow insights:
Strong Operating Cash Inflow: Operating cash generation rebounded dramatically in Q2, backed by ₱974 million in EBITDA.
Capital Expenditures (CapEx): Investments were primarily allocated toward finishing the rehabilitation of Padcal's crushing plant and progressing construction on the Silangan Project.
Foreign Exchange Headwinds: The bottom-line loss in H1 2026 (₱200 million) was heavily influenced by ₱407.9 million in non-cash net foreign exchange losses due to the restatement of foreign-denominated project debt as the exchange rate fluctuated.
Investment Thesis: Bull Case vs. Bear Case
🐂 The Bull Case
Padcal Production Restored: The full rehabilitation of Padcal's Secondary and Tertiary Crushing Plant successfully eliminated operational bottlenecks, returning throughput to normal levels.
Silangan Project Approaching Target: Progressive turnover of the Process Plant by EEI Corporation to SMMCI and consultant Ausenco Pty. Ltd is actively under way, putting the flagship project on schedule for commissioning completion in Q4 2026.
Elevated Realized Prices: High realized prices for both gold ($4,136/oz) and copper ($6.23/lb) provide a buffer for operating margins.
🐻 The Bear Case
Foreign Currency Volatility: Restatement of USD-denominated debt creates earnings volatility, as seen in the ₱407.9 million H1 2026 forex loss.
Tight Short-Term Liquidity: Current liabilities (₱8.089 billion) exceed current assets (₱5.058 billion), highlighting the importance of successfully completing and ramping up Silangan to optimize short-term liquidity.
Execution Risks: Final phase testing and commissioning of the Silangan process plant into late 2026 must be executed without material delays or unexpected cost overruns.
Executive Summary
Philex Mining’s Q2 2026 results show a strong operational recovery. The company turned a steep loss in Q1 into a profitable Q2 through restored milling capacities at Padcal and strong realized metal prices. As the company enters the second half of 2026, investor focus will shift toward the execution and completion of commissioning at the Silangan Project in Q4 2026, which remains the central pillar for Philex’s long-term production profile.
Source: PSE Edge
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