First Quarter 2019

Financial and Operating Results08 May 2019

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First Quarter 2019 Highlights

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Concentrated efforts to maximize the cash generation capabilities

of Padcal towards the end of mine life

Reported net income of P206 million and core net loss of P112

million

Consolidated EBITDA at P217 million

Controlled expenses resulting from cost containment initiatives

implemented across the business

Silangan actively working to complete required underground

mining permits

Ongoing definitive feasibility studies expected to conclude by

early 3Q 2019

Operating Statistics

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1Q 2019 1Q 2018 +/-

Tonnes Milled (‘000) 1,832 2,197 -17%

Production:

Gold – oz 10,493 17,947 -42%

Copper – lbs (‘000) 5,727 7,073 -19%

Recovery:

Gold 74% 77% -3%

Copper 81% 79% -2%

Ore Grade:

Gold – gms/dmt 0.239 0.329 -27%

Copper - % 0.175 0.185 -5%

Prices:

Gold – (US$/oz) 1,304 1,338 -3%

Copper – (US$/lb) 2.96 3.10 -4%

Tonnes Milled: Unscheduled

maintenance of critical mining

equipment and forest fire incidents

Production: Diminishing ore grades

and lower gold recovery

Financial Summary

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(in Php mn) 1Q 2019 1Q 2018 +/-

Gross Revenues 1,613 2,373 -32%

Smelting Charges 137 207 -34%

Net Revenues 1,476 2,165 -32%

Costs and Expenses 1,566 1,697 -8%

Other Income (Charges) 294 (35) -

Income Tax (Benefit) (3) 131 -

Net Income 206 303 -48%

Core Net Income (Loss) (112) 346 -

EBITDA 217 910 -76%

Margins:

EBITDA Margin (%) 15% 42% -27%

Net Income Margin (%) 14% 14% -

Revenues: Lower tonnage and

marginal ore grades

Cost and Expenses: Continuous

implementation of cost saving

measures across the business

Other Income (Charges): Reversal

of previously written-off receivables

258

369

19937

1342

1Q 2019 1Q 2018

CAPEX Distribution(in Php Mn)

Padcal Silangan Other Mine Exploration

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Capital Expenditure

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470448

Balance Sheet

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(in Php mn) 1Q 2019 FY 2018

Cash & Cash Equivalents 262 871

Receivables & Others 3,178 3,582

Total Current Assets 3,440 4,453

Property, Plant & Equipment 4,987 5,404

Deferred Exploration Costs 25,771 25,448

Others 5,401 5,406

Total Assets 39,600 40,711

Short-Term Debt 2,153 2,156

Others 2,709 4,104

Total Current Liabilities 4,862 6,260

Bonds Payable 7,419 7,333

Deferred Tax Liabilities & Others 2,782 2,790

Total Liabilities 15,693 17,012

Total Equity 23,907 23,699

Total Assets: Silangan project

represents more than 60% of total

assets

Subscription Payable: Related to

share subscription in PXP Energy

PXP Energy Corporation

Financial Highlights and

Operational Updates

• 3% decrease in gross revenue due to:

Slightly higher volume offset by lower crude price

• 13% increase in cost and expenses due to:

Higher depletion charge

Accrual of expenses

• Reported net income (from net loss) due to:

Other income (charges); offset by higher cost and expenses

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Financial Highlights – Profit and Loss

(in PhP millions) 1Q 2019 1Q 2018 % Inc (Dec)

Gross revenue ₱ 30 ₱ 31 -3%

Cost and expenses 47 41 13%

Loss from operations (17) (11) 59%

Other income - net 24 2 908%

Reported net income (loss) ₱ 7 ₱ (8) -183%

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Financial Highlights – Financial Position

As of Mar 31,

2019

(Unaudited)

As of Dec 31,

2018

(Audited)

% Inc

(Dec)

Cash & cash equivalents ₱ 332 ₱ 342 -3.1%

Receivables and other CA 82 86 -5.7%

Current assets 413 429 -3.6%

Deferred exploration costs & other NCA 6,841 6,818 0.3%

Total assets ₱ 7,254 ₱ 7,247 0.1%

As of Mar 31,

2019

(Unaudited)

As of Dec 31,

2018

(Audited)

% Inc

(Dec)

Due to affiliate ₱ 739 ₱ 2,125 -65.2%

Accounts payable & others 32 34 -5.9%

Current liabilities 772 2,160 -64.3%

Deferred income tax liability 1,114 1,113 0.1%

Others 202 192 5.0%

Non-current liabilities 1,316 1,305 0.8%

Total l iabilit ies 2,088 3,465 -39.8%

Capital stock 1,960 1,960 0.0%

Additional Paid-in Capital 2,818 2,821 -

Subscription receivable (924) (2,311) -

Deficit (1,363) (1,374) -0.8%

Others 271 276 -1.7%

Non-controlling interest 2,404 2,410 -0.2%

Total equity 5,167 3,782 36.6%

Total Liabilit ies and SHE ₱ 7,254 ₱ 7,247 0.1%

ASSETS (in PHP millions)

LIABILITIES AND STOCKHOLDERS’ EQUITY

(in PHP millions)

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Operations Update

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SC 6B

SC 14C2

SC 6A

Cadlao

SC 14C1

SC 14B

SC 14A

TUMBES BASIN, OFFSHORE PERU

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SC 72 Recto Bank (Forum 70%) Under Force Majeure (FM) since December 15, 2014.

Forum will have 20 months upon lifting of the FM to drill the two (2) commitment wells.

Contracted DownUnder Geosolutions (DUG) to conduct broadband PSDM reprocessing

of 565 sq. km 3D seismic data. The reprocessing will be completed in 2Q 2019.

SC 74 Linapacan Block (PXP 70%) The gravity modeling and seismic interpretation of MC2D data are underway.

Ongoing paleodating of rock samples collected during the fieldwork in the Calamian

Islands last June 2018 by the UP National Institute of Geological Sciences.

The SC 74 and SC 14C2 (West Linapacan) Consortia are conducting Rock Physics and

Quantitative Inversion (QI) studies over the Linapacan and West Linapacan areas with

Ikon Science as contractor.

SC 75 NW Palawan (PXP 50%) Under FM since December 27, 2015.

Sub-Phase 2 will have a term of 18 months upon lifting of FM with the acquisition of 1,000

sq km of 3D seismic data as the minimum work commitment.

SC 40 North Cebu (Forum 66.67%) Processing and interpretation of gravity data that was acquired in April 2018 is underway.

Operations Update 1/2

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SC 14C1 Galoc (Forum 2.27%) Continued production in Galoc Field. A total of 1.2 million barrels of oil (mmbo) was

produced in 2018. Cumulative production from October 2008 to April 2019 stood at

21.60 million barrels of oil.

There have been three (3) liftings conducted in 2018. The average Galoc oil price

realized for the 3 liftings was 35% higher than last year’s average (US$74.15/barrel in

2018 versus US$ 54.80/barrel in 2017). Three liftings are expected this year. The first

one was completed last January 2019.

Peru Block Z-38 (Pitkin 25%) The FM in Block Z-38, which was imposed on September 01, 2013, was lifted by

Perupetro S.A. on September 12. 2018. The current Third Exploration Period will now

expire on July 01, 2020.

The Peruvian government has already approved the farm-in of Tullow Oil to Z-38. A

Supreme Decree was signed on March 18, 2019 and published in their official gazette

the following day. The participating interests in Z-38 are now as follows: Karoon Gas –

40%, Tullow Oil – 35%, and Pitkin Petroleum – 25%.

Preparations are underway for the implementation of a drilling program that will complete

the Consortium's well obligations under the Third Exploration Period.

Operations Update 2/2

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