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Philex Posts P1.23 Billion Income
by Philippine Resources - March 02, 2021
Philex Mining Corporation posted a net income of P1.23 billion which can be attributed to parent company equity holders last year on the back of lower expenses and higher revenues.
The Pangilinan-led mining firm noted a turnaround from its P647,78 million attributable net loss in the previous year, and also reported a core net income of P1.16 billion, seven times higher than last year.
Its revenues in 2020 also improved to P7.83 against P6.79 billion in 2019. The cost went down nearly 9% to P6.3 billion from P6.92 billion previously because of efficient operations and cost management.
According to Philex, the fourth quarter tonnage fell to 1.88 million tons as compared with 1.99 million tons in the previous quarter. This was because of the temporary stoppage of underground operations after a number of personnel tested positive for the virus.
“The shutdown was necessary to undertake COVID-19 mass testing of miners and contain the local transmission of the virus,” it said. “Despite the COVID-19 related temporary shutdown, the company produced a total of 56,000 ounces of gold and 26.38 million pounds of copper (in 2020), higher than full-year 2019 production of 53,064 ounces of gold and 25.74 million pounds of copper.”
The firm added that it would optimize its Pacdal mine in Benguet and on strategic planning for its Silangan copper and gold mine project in Surigao del Norte.
Eulalio B. Austin Jr., Philex president and chief executive officer, said that this positive outlook has boosted the interest of the global economy.
“We are closely working with our financial advisor to bring Silangan into operation in the soonest possible time and at the same time optimizing the Padcal Mine,” he said.
Meanwhile, Philex Chairman Manuel V. Pangilinan said that those who would survive the effects of the pandemic are those businesses that can adapt to change.
“Thankfully enough, Philex as an export-oriented company was permitted to operate by the government despite the community quarantine, providing revenues to allow us to concentrate on… the health and financial well-being of our employees; maintaining service excellence to our customers; and assistance to the government in caring for those most affected,” he said, “Mining shall and always will be a key economic driver towards inclusive national growth. Mining has the potential to provide much-needed revenue for the government’s response against the pandemic, particularly in the purchase of vaccines, if it is allowed to flourish.”
On Friday, the shares of Philex Mining at the stock exchange increased to 1.22% or six centavos to conclude at P4.96 apiece.
Philippine Resources - March 15, 2019
Bezant Resources pursuing creation of Mankayan Copper Gold Mine
UK mining Company Bezant has since the beginning of 2018 refocused towards the development of an international copper gold portfolio focused on the Mankayan project in Luzon. In this period Bezant with its partner and MPSA holder Crescent Mining and Development Corporation ( “Crescent”) has:Appointed a new Bezant management team led by Colin Bird and Laurence ReadIncoming Chairman of Bezant, Colin Bird, is founder and chairman of the highly successful Jubilee Metals, one of the UK’s most profitable independent metals companies and oversaw the exploration of the Kalumbila copper project in Zambia, which was sold to First Quantum for $260m. Alongside him Laurence Read was appointed as CEO, who has a track regard in a major independent mine development financing and transaction.With Crescent reassessed the extensive historical project dataThis has included site visits with strategic groups undertaking new, independent geological and engineering assessments, extensive relogging of historical drill data, creation of a fly through graded model of the resource and culminated in an economic report published in February 2019. Asked in Manilla recently for the rationale behind the strategic change towards Mankayan and the Philippines Laurence Read, CEO, said “Changing copper market dynamics means Mankayan is ready to be a standalone, underground mine and our focus is on delivering that. Copper is about to see a major upheaval in price due to demand issues and the Mankayan project is a tier 1 asset which you can drive directly to from Manilla airport.“The Mankayan project has grid power access, infrastructure, a highly skilled work force and as a block cave underground mine with a long life is not affected by the current Philippine restrictions on open pit mining. Over the last ten years the world copper supply shortage and improvements in mining techniques have meant that sustainable mining grades have fallen from 1% plus copper equivalent to slightly over 0.6% in just a decade. This means Mankayan with a life of mine copper equivalent grade of 0.63% to 0.65% depending on mining strategy is an attractive proposition with a Snowden resource estimate defining an indicated resource of 1.1 million tonnes of contained copper and 3.7 million ounces of contained gold and an inferred resource of 0.2 million tonnes of contained copper and 0.6 million ounces of contained gold.Highlights of the new independent economic study by Mining Plus released in February 2019 are11 different mining strategies modelledFor the first time, a Sub-Level Caving (“SLC”) ‘stepping stone’ scenario, with two main Block Caving (“BC”) routes identified for progression, with life of mine production grade in excess of 0.64% copper equivalent (“CuEq”).Various sub $19/t cost optionsThe study focused on delivering the project into production with highly robust copper equivalent production grade, with a high gold content and uniformly sub $19/t costs. The three main representative options summarized below, are taken from the 11 modelled (the option numbers being those used in the study) Asked what lay ahead in 2019 Laurence Read said; “We have a lot of important strategic decisions to make but what we aren’t worrying about is the copper and the gold in the ground or that this will be major mine for the Philippines. Picking the right path for the mid to long term is key for Crescent and Bezant, but whoever we work with to develop this mine will have access to significant amounts of physical, cost effective, copper and gold from Mankayan production and will be able to command a major strategic advantage in the global metals space for the next forty years.
Philippine Resources - November 03, 2020
SMC Plans to Build LNG Plant
San Miguel Corporation (SMC) has plans to build 2,550 megawatts of power facilities using imported liquefied natural gas to hit commercial operations in 2022. According to SMC President and Chief Operating Officer Ramon S. Ang, the project will be done in three stages at 850MW capacity each. The site is in Batangas, proximate to the existing 1,200MW Ilijan gas-fired power facility, and SMC Global Power Holdings Corporation is the subsidiary that advances this project to implementation. The plan is to offer its capacity in an exercise that power utility giant Manila Electric Company (Meralco) undertakes on its competitive selection process (CSP) for new power supply agreements. “The power generation group of San Miguel, we are now switching to LNG. We intend to build three lines of 850MW, so that’s 2,550MW,” Ang said. He added that the development blueprint is set for the targeted commercial operation date of the initial 850MW by 2022 - the timeframe when imported LNG begins to flow into the country. Ang said that SMC will have its own floating storage regasification unit (FSRU) to supply LNG to its own gas plants – and exploratory discussions with Batangas-headquartered engineering and gas firm AG&P are now being conducted. “All of that can be up and running in two years,” Ang said. “In 24 months, that plant will be up and running. Whether we win the Meralco bid or not, we will construct the first line of 850MW.” Ang said that the alternative off-takers could be the electric cooperatives, specifically those operating in the grids of Luzon and Visayas. According to him, the longer-term goal will double their capacity to 5,000MW, which can depend on the electricity demand gains. Ang also indicated that SMC is eyeing to replace their old coal plants with LNG-fed generating facilities, so that forced outages could be minimized.
Philippine Resources - February 26, 2021
New Cebu Port Civil Works to Start Q2 2021
The civil works of the new Cebu international container port will start during the second half of 2021.This was revealed during the online 160th Maritime Forum of the Maritime League, Engr. Romel Pagarom, acting manager of CPA’s Planning and Monitoring Division, said that the groundbreaking of the NCICP is scheduled for August 16.The cost of the project is $118 million (roughly P5.9 billion) with around 35 months or approximately 3 years to build it, he said. But of course, there have been a few delays to the project. The National Economic and Development Authority (NEDA) in 2016 gave CPA, with the Department of Transportation (DOTr) as its lead implementing agency, the clearance to pursue the project. The construction of the project was supposed to start in 2018 but was pushed back to November 2020. Pagarom also added that they face several issues before proceeding with the civil works - Road-Right-Of-Way (RROW) acquisition which will connect the international port to the main road in Barangay Tayud (the MOA has already been drafted), and the need to work on the working visa of the South Korean consultants. Around P132 million is expected to be downloaded to Consolacion’s coffers if the agreement’s implementation would finally push through.“MOA was forwarded by Legal Service to the Office of the Secretary on January 20, 2021, for Sec. (Arthur) Tugade’s approval prior transfer of funds to the LGU of Consolacion. Thus, the PMU (Project Management Unit) will closely monitor the approval of the MOA and preparation of request for fund transfer of P132 million to LGU Consolacion,” said Pagarom.For the working visa of the consultants, project proponents will be sending out a reiteration letter to the Department of Foreign Affairs (DFA). Last January 20, 2020, DOTr issued the notice of award for the US$5.4-million consultancy services for the NCICP project to South Korea-based Yooshin Engineering Corporation.Some of the features of this new facility include a berthing facility with a 500-meter long quay wall that can host two 2,000 twenty-foot equivalent unit (TEU) vessels at the same time; operating facilities and structures for containers; a bridge and an access road; and a dredged waterway and turning basin.This will soon serve international cargoes and the current CIP will be transformed into a domestic port to address the decongestion problems.
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Philippine Resources - April 06, 2021
Philippines Unlikely to Fulfill China's Nickel Ore Requirements
Despite the resumption of many mining operations in the region, the Philippines is unlikely to fulfill China's nickel ore requirements, according to an S&P report. Philippine mined nickel production is expected to increase over the next five years, according to an S&P Global Market Intelligence industry survey, as producers aim to satisfy Chinese nickel ore demand. However, S&P analysts said, “We believe that legislation will remain a major hurdle for restarts and new projects, therefore the Philippines will be unable to meet Chinese nickel ore demand over our forecast period.” Three nickel mines in the world that had been closed due to the coronavirus disease in 2019 were reopened in 2020 when the government turned to the mining industry to help offset the economic effects of the disease (Covid-19). These restarts and demand from current mining facilities, according to foreign analysts, are expected to raise Philippine mined nickel output from 340,000 tonnes in 2020 to 550,000 tonnes in 2025. “However, we believe that existing environmental restrictions on Philippine mining will limit the scope for further mine restarts or additional production from new mining projects in the medium term,” S&P analysts said. “This will prevent the Philippines from meeting China’s nickel ore requirements in Indonesia’s absence, driving Chinese primary output down from an estimated 715,000 tonnes in 2020 to 490,000 tonnes in 2025.” The Philippine Nickel Industry Association (PNIA) previously reported that the country's nickel export value increased by P1 billion from January to September 2020, compared to P24 billion in the same timeframe last year. According to a survey from the Mines and Geosciences Bureau (MGB), the Philippine nickel industry produced 18.5 million dry metric tons (DMT) in 2020, down 14% from the previous year's 21.6 million DMT production. MGB stated that the lower output was primarily due to the increased community quarantine imposed by Covid-19 from March to May 2020, during which mineral product movement was restricted across the world. The increased performance in export value for the nickel industry, according to PNIA President Dante Bravo, was primarily motivated by demand increases in nickel prices. China's consistent demand boosted the world nickel price in 2020.
Philippine Resources - April 06, 2021
Forecasts for PH Development in 2021 Have Been Reduced
Fitch Solutions, a London-based think tank, has slashed its economic growth forecast for the Philippines this year, citing the return to tough lockdown measures in the wake of the COVID-19 outbreak, which is expected to dampen domestic investment in the short term. Fitch Solutions now expects the Philippines' actual gross domestic product (GDP) to rise by 5.8% this year, down from the initial estimate of 7.6%, due to the government's capital spending push being derailed. “The surge in COVID-19 cases in the Philippines in March and lockdown measures imposed reflect the continued risks to the archipelago’s economic outlook,” the think tank said in a research note dated April 1. The government has reimposed curfew policies in Metro Manila and neighbouring provinces, affecting an unprecedented 24 million inhabitants, as it struggles to control the pandemic. Given the continuing increase in cases and the long-term effect on hospital capacity, Fitch Solutions expects the lockout steps to be extended beyond two weeks. “The likelihood of further outbreaks in other regions remains high and given the slow vaccination rollout in the country (less than 1 per cent of the population has been vaccinated as of end-March) we believe the Philippines’ recovery will continue to be hampered by the pandemic,” Fitch Solutions said. Regional outlook The think tank went on to say that its new estimate of 5.8% also had downside risks. It stated that its forecast for a moderate recovery this year was based on the assumption that domestic demand would steadily improve and the government's investment plans would be realized, resulting in a sharp increase in domestic activity. “However, the slow vaccine rollout and recurrent difficulties in containing outbreaks look set to stall the recovery further,” it noted. A survey of economists in the Asean-5 and India found that the Philippines' growth projection was 5.2 per cent, down from 5.9 per cent in the previous poll last December. Although Asian countries that carried out mass vaccination earlier, such as India, Indonesia, and Singapore, saw their near-term economic prospects boost, gradual inoculation tempered economists' growth aspirations for the Philippines, according to a poll released on Monday by the think tank Japan Center for Economic Research (JCER). Economists following the Philippines predicted that GDP will contract by 3.8 per cent year on year in the first quarter, up from 0.7 per cent a year before. GDP will rise 8.4% year over year in the second quarter, 5.6 per cent in the third quarter, and 4.5 per cent in the fourth quarter due to base effects from last year's low. Malaysia and Thailand, including the Philippines, have weaker growth forecasts for 2021. “Most economists see the rollout of COVID-19 vaccination as one of the most significant positive developments over the last three months and all three upward-trending countries have rolled out vaccinations relatively sooner. This may have improved economists’ outlooks. Delays in vaccination and the spread of COVID-19 variants are listed as factors that might damage the economies,” JCER said. Top concerns Faster dissemination of COVID-19 variants and delayed vaccination, or "corona shock," were described as top economic issues in the Philippines, but higher inflation was also identified as a major threat to the country's recovery from the pandemic-induced recession. According to analysts, headline inflation will average 4.5 per cent in the first quarter, 4.8 per cent in the second, 4.7 per cent in the third, and 4.2 per cent in the fourth quarter, averaging 4.5 per cent in 2021, way above the target range of 2-4 per cent. With a 6.1 per cent increase, Singapore is forecast to lead economic growth in the Asean-5 this year, led by Malaysia's 5.3 per cent and Philippines' 5.2 per cent. According to the JCER report, India will rise at a higher rate of 11.2 per cent in 2021. Economists predicted that the Philippines' average GDP growth will be 6% in 2022, up from 5.8% in December but still below the government's goal.
Philippine Resources - April 06, 2021
Estrella-Pantaleon Bridge Expected to Open in June 2021
The Department of Public Works and Highways (DPWH) is concentrating not only on the civil work’s development of the Estrella-Pantaleon Bridge Project but also on keeping the workplace secure and clean. DPWH Secretary Mark A. Villar said, "that at 86 per cent and with just a few more days to fully complete the new Estrella-Pantaleon Bridge, we are mindful that a single case of COVID-19 in the project can lead to an interruption, if not total work stoppage" Secretary Villar recently issued revised guidelines in Department Order #30 for the implementation of ECQ, MECQ, GCQ, and MGCQ infrastructure projects, both public and private, during the public health crisis. "Although the bridge project is being rushed for completion in June 2021, it is critical that construction firms be proactive rather than reactive in dealing with the increased risk of illness from COVID-19," Secretary Villar added. Emil K. Sadain, Undersecretary for Unified Project Management Office (UPMO) Operations, and UPMO Roads Management Cluster 1 Project Manager Benjamin Bautista checked the physical progress of the bridge project on Monday, April 5, 2021, and the contractor's compliance with protocols that cover prevention, detection, and rapid response to maintain construction work continuity as workers who have been living in the barracks resume work after the Lenten season. “Let’s get to work healthy to get the job done”, Undersecretary Sadain reminded the contractor China Road and Bridge Corporation citing the current health situation, particularly in the NCR Plus bubble. In his report to Secretary Villar, Undersecretary Sadain reported that the project is more than 12% ahead of time, having completed all bridge substructure works for abutments A and B on both sides and piers of the Makati approach bridge; the V-shaped piers for the Main Bridge; concrete box girder for the approach bridge; and the V-shaped piers for the Main Bridg; and two (2) prestressed concrete box girder segments using the traditional approach. Post-tensioning and grouting works, formworks and rebar installation for the closure section in the side spans, formworks installation for the 2-meter closure section in the main bridge span, and preparatory works for approach road construction on both sides are now the focus of bridge construction activities. The new 506-linear meter bridge, funded by China and introduced by the DPWH UPMO - Roads Management Cluster 1 (Bilateral), would have a diameter of 21.65 meters, capable of four (4) lanes instead of two (2), and three-meter sidewalks on both sides. The P1.46 billion new Estrella-Pantaleon Bridge, which is scheduled to be completed in the second quarter of 2021, will handle 50,000 vehicles a day and minimize travel time between Mandaluyong and Makati to 12 minutes. The bridge will connect Estrella Street in Makati to Barangka Drive in Mandaluyong, helping to relieve traffic congestion on EDSA by providing an alternative route for motorists.