2016

Lower renegotiated power rates

Reduced depreciation due to extension of mine life

•Lower G&A due to spend management and cost rationalization

Outstanding trade receivables are mainly from theParent Company’s main
customer. Other receivables of the Group are not material. The

The Parent Company’s trade receivables arise from shipments of copper

concentrates which areinitially paid based on 90% of their provisional
value, currently within one week from shipmentdate.

Accrued interest receivables arise from the Group’s short-term deposits.

Other receivables includeadvances to officers and employees, and other
non-trade receivables.

Advances from officers andemployees are non-interest bearing cash

advances for business-related expenditures that are subjectto liquidation.

Other non-trade receivables are non-interest bearing and are generally

collectible ondemand.
FY2016 Core Net Income up 83% to P1.66 billion

•Net Income more than doubled to P1.57 billion

•Cost and Expenses down 2% despite 2% rise in tonnage

•US$8.5 million short-term bank debt retired in FY2016

•Declaration of P0.04/share cash dividends

•SilanganDFS on track for completion; MPSA valid and legal

•P1.9 billion in total taxes, royalties, fees, SDMP and EPEP contributed, 22% higher than net
income

Revenue boosted by improved metal prices

•Smelting charges driven by higher copper output and weaker currency

•Costs and expenses reduced through vigilant cost management

Lower renegotiated power rates•Reduced depreciation due to extension of mine life •Lower
G&A due to spend management and cost rationalization

2017

Revenue: boosted by improved metal pricesSmelting charges: lower due to drop in copper
outputCost and expenses:higher depreciation and block amortization charges and increase in
excise taxes and royalty payments
 Total current assets increased by 23.17% in 2016 but decreased by 3.48% in 2017. The

increase in 2016 was the result of the 22.92% increase in inventories and new advances

made to a related party in 2016. In 2017 however, both inventories and advances to

related party decreased by 34.58% and 1.15% respectively. The company also collected

45.79% of its accounts receivable in 2016 but cash decreased by 54.60% due to new

investments and partial settlement of obligations in 2016. Both cash and accounts

receivable increased in 2017 by 27.43% and 103.62% respectively. Other current assets

continue to decrease. Total current assets were 12.11% of total assets in 2015, 16.70% in

2016 and 15.79% in 2017.

 Total noncurrent assets decreased by 15.91% in 2016 as it derecognizes goodwill

following the deconsolidation of PXP Energy Corporation and deferred income tax

assets. In 2017, total noncurrent assets increased by 3.86% due to an increase in pension

asset and deferred exploration costs. Total noncurrent assets were 87.89 % of total assets

in 2015, 83.21% in 2016 and 84.21% in 2017 with deferred exploration costs having the

largest portion of noncurrent assets.

 Total liabilities decreased by 6.04% as the company paid both its current and noncurrent

liabilities in 2016. Current liabilities decreased by 2.40% while noncurrent liabilities

decreased by 6.04%. In 2017, noncurrent liabilities increased by 4.19% despite the

decrease in total liabilities due to the 12.92% decrease in current liabilities. This showed

that the company paid its currently maturing liabilities and incurred long term borrowings

during the year. It is possible that the company used some of its long term borrowings to

settle its current liabilities and acquire some of its noncurrent assets in 2017. Total

liabilities were 37.32% of total assets in 2015, 39.48% in 2016 and 37.67% in 2017.
