By Heather Caitlin P. Manago, researcher
Shares of Philex Mining Corp. (Philex) fell last week as a structural failure at the mill plant at the Paducall mine disrupted operations and weighed on investor sentiment despite strong global gold prices.
mining company was 19thth The most actively traded stock during the week, with 54.44 million shares worth P590.47 million exchanging hands on the local stock exchange between January 19 and 23.
Philex shares closed at P11.16, down 2.8% from last Friday's P11.48, less than the mining and oil sector's 5.2% gain and the Philippine Stock Exchange Index (PSEI)'s 2% decline.
However, on a year-to-date basis, the stock is up 12.7% from P9.90 at end-2025, lagging the sector's 21% rise but outperforming the PSEi's 4.6% rise.
Unicapital Securities, Inc. “The share price decline was primarily due to operational disruptions at the Paddock mine following a structural failure in the mill plant's support system,” Peter Lewis D. Garnes, equity research analyst at Co., Ltd., said in an e-mail.
Jash Matthew M. Baylon, equity analyst at The First Resources Management & Securities, said the development prompted the selloff as investors anticipated lower gold production and weak short-term profitability.
Philex said on Monday last week that operations at its Padacal mine in Benguet were disrupted following a structural support failure in a part of the mill plant, affecting daily production.
The failure affected the vibrating screen of the tertiary crusher and caused misalignment in the connecting conveyor, causing shutdown of the entire STC system that feeds the grinding section.
The company said it had implemented an alternative milling process at reduced capacity using unaffected facilities, while engineering assessment and repair work was ongoing to restore normal operations.
Despite higher gold prices, Philex shares fell as investors looked at the risk of lower production and earnings from the Padcall mine in the first quarter, a concern that could extend into the rest of the year, Mr. Garnes said.
“However, [the stock] Gold prices recovered in the latter half of the week due to strong gains in global markets due to geopolitical tensions,” Mr Bellon said.
On Thursday, spot gold reached a record high of $ 4,917.65 an ounce.
For the week ahead, Mr. Garnes advised investors to “closely monitor the price action of the yellow metal, which is currently hovering near the $5,000 per ounce level amid rising geopolitical risks and the upcoming US interest rate decision,” noting that phylloxera “remains a gold proxy.”
They identified immediate support and resistance levels at P10.70 and P11.70 respectively.
Mr Bellon similarly said investors should keep an eye on geopolitical developments, as gold price fluctuations are largely driven by external factors that could impact Philex's margins.
He said updates on conditions at the Padkal site remain important, as these directly impact the company's daily operations and production levels.
He estimates support at P10 to P10.20 and resistance at P11.80 to P12.
Philex is one of the three Philippine units of Hong Kong-based First Pacific Co., Ltd., along with Metro Pacific Investments Corp. and PLDT Inc.
Hastings Holdings, Inc., a subsidiary of PLDT Beneficial Trust Fund MediaQuest Holdings, Inc. A unit of, is interested in businessworld Through the Philippine Star Group, which he controls.