The Bellwether – Issue 25

Releasing the 25th issue of The Bellwether, as published by FMIC's IAG-Research.

This is a fortnightly publication on market action and outlook.

The following are the highlights of the issue:

Aboitiz Land (AL) could be AEV’s next value driver 

Philex Mining Corporation (PX) fast-tracks Php12bn rights offer, denies preemptive rights to foreign resident shareholders

Manila Mining Corporation’s (MA) Placer copper gold mine to re-open in 2H2014 at 10k tons ore/day

Aboitiz Land (AL) could be AEV’s next value driver 

Aboitiz Equity Ventures’ (AEV) flat earnings due to AP’s earnings fall

1Q2013 AEV’s core earnings was flat at +1% year-on-year (y-o-y) to Phpp5.53bn. EBITDA (beneficial) was also flat, +0.20% to Php8.4bn. Brisker growth in reported AEV net income, up 17% to Php6.8bn, was due to a share sale gain involving City Savings (used to be owned by AEV, now 99.54% owned by Union Bank of the Philippines) worth Php1.3bn and foreign exchange gains of Php118mn.

Philex Mining Corporation (PX) fast-tracks Php12bn rights offer, denies preemptive rights to foreign resident shareholders

Rights offer being fast-tracked

PX shareholders, in last April 30, 2013’s special stockholders’ meeting, amended its corporate by-laws, denying foreign resident shareholders/subscribers of their preemptive rights over the Php12bn rights offer planned for this year. The terms of such rights have not been defined but are being fast-tracked. A step in that direction is the elimination of lengthy regulatory hurdles entailed by foreign resident/shareholders’ subscription to the rights. This amendment though won’t be general in effect but will be on a per jurisdiction basis, meaning selective since a key foreign shareholder First Pacific (owning 20% of Philex) will surely exercise its preemptive right. PX shareholders are based in Japan, US and other Asian countries.

Manila Mining Corporation’s (MA) Placer copper gold mine to re-open in 2H2014 at 10k tons ore/day

Placer mine re-opening in 2014

MA’s Placer mine, located in Placer Surigao del Norte, will reopen next year. This is after the completion of the ongoing feasibility under two Australian mining consulting companies called Mining Associates and Mining One. The mine, located in Surigao province, will operate out of recoveries from the shallow and open pittable portion of the mine, which is part of a larger area that will also require underground mining for much later. Tonnage per day could reach 10k initially, the level it ran shortly after the shutdown 12 years ago, when MA’s board of directors opted to stop mining operations due to the expiration of its temporary authority to construct and operate its tailings dam issued by the Department of Environment and Natural Resources. Then the copper flotation project was suspended by the Board of Investments (BOI) on August 23, 2005.

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