Why MVP is eager to kickstart Silangan copper-gold mine: $7B in sales in 28 years

Philex Mining Corp. expects its planned $1.5 billion Silangan project in Surigao del Norte to be its biggest source of revenue with the copper-gold mine seen to yield close to $7 billion in sales over 28 years.

“The numbers for the Silangan project are very compelling, pushing us to pursue the mine development even without a strategic partner or major investors as we originally envisioned,” said Romeo Bachoco, CFO of Philex.

Based on the company’s in-phase mine plan, the Boyongan deposit of the Silangan project has an estimated 81 million tonnes of mineable reserve which is seen to yield 992.8 million pounds of copper and 2.81 million ounces of gold.

The feasibility study assumed a price of $3.20 per pound of copper and $1,342 an ounce for gold—both below current prices of copper of over $4 per pound and of gold that is over $1,800 an ounce.

Using those assumed prices, the combined revenues from copper and gold would hit $6.91 billion over the 28 year life of the Silangan mine.

Bachoco earlier said the breakeven cost of producing a pound of copper in Silangan was $2 and $2.30 per pound and between $850 and $900 for every ounce of gold.

Philex is still exploring the nearby Bayugo deposit, which is expected to be mine-ready by the fifth year from the start of Boyongan’s commercial operations. Another ore prospect within the area is the Kalayaan deposit.

The country’s largest miner would need an initial $224 million to jumpstart the development of the project this year. The mine, originally scheduled to begin production in 2018, was hit by a ban on open pit mining.

The starter mine will initially produce 2,000 tonnes of ore per day and will begin commercial operations in early 2025 and reach 12,000 tonnes a day by the 12th year of operation.

Funding for the project will come largely from internally generated cash and fresh capital infusion from stockholders.

Philex is seeking to raise around P3.15 billion from a stock rights offering scheduled in February.

Converge backs infrastructure sharing to lower costs

Bilyonaryo Dennis Anthony Uy’s Converge ICT Solutions Inc. is supporting a proposal that allows telcos or internet service providers to share the cost of installation of underground pipes for telecommunication cables whenever new road infrastructure is built.

Converge backs infrastructure sharing to lower costs

Bilyonaryo Dennis Anthony Uy’s Converge ICT Solutions Inc. is supporting a proposal that allows telcos or internet service providers to share the cost of installation of underground pipes for telecommunication cables whenever new road infrastructure is built.

Fraud trial opens of former Swedbank CEO

Former chief executive of Swedish bank Swedbank, Birgitte Bonnesen, went on trial in Stockholm on Tuesday to answer fraud and market manipulation charges, three years after a money laundering scandal implicating her bank erupted.