August 31, 2014

MGB permanently lifts suspension of PX mine operations

In a disclosure to the Exchange, Philex Mining Corp (PX) announced that the Mining and Geosciences Bureau (MGB) has permanently lifted the cease and desist order issued on August 2012 for PX to halt operations of its Benguet mine due to a tailing spill incident.

Prior to this, MGB has only given Philex a temporary permit to resume operations when it has complied with all the requirements of the MGB and the various environmental agencies of the Philippines pertaining to the clean-up and rehabilitation of its mining and affected areas.

Our take: The issuing of the permanent lifting of the suspension order finally removes the overhang that has plagued its operations for more than a year. Since PX has resumed operations, it has already produced this year 4x the amount of copper and 2.5x the amount of gold that it produced last year. However, the higher output has been partially offset by weaker metal prices. – WealthSec