Customer’s First Choice: Sandvik Philippines Delivers 11th and 12th Pantera DP1500i Drills to Filminera Resources Corporation
Philippine Resources - May 22, 2023
DOF eyes sale of more gov't assets, mining rights
Photo credit: Department of Finance The government is planning to sell more of its assets this year, the Department of Finance (DOF) said. "Last year we already sold I think something like PHP1.5 billion assets, and then for this year, we're aiming to sell more," Finance undersecretary for privatization and corporate affairs group Catherine Fong said in a briefing. Fong said they are mostly looking at real estate properties. "There's still a lot under the ownership of government under the Privatization Management Office (PMO) that we're intending to roll out faster. We're aiming for higher than last year. Definitely double that or at least higher," Fong added. She said they are aiming just for PMO properties, adding however that there are still a lot of government assets for disposition. Fong said they want to auction the 2.2 hectare Mile Long property in Makati City. "Then we're hoping to sell this year or next year some mining rights still owned by the government," she said. Fong said that for now, what's hindering the government from auctioning one of the mining rights is the verification of the content of the mine itself. "A lot of the feasibility studies are still desktop. So we're having the valuation done, but definitely there are a lot who are interested. We're being assisted right now by the German government, and we've also received offers from the US government and Australian government to assist us in assessing the value of the mines and to help us in packaging it for auction, so definitely there's a lot of local and foreign interest once we're ready to auction the mines," she said. Fong said the government currently has four mining rights. "We have four, as I understand, they're quite big, but some are still under litigation, so we're not prepared to auction it out yet, but at least one already has a clean title, so we're going with that [Basay Mine] first, but we're still in the process of validating its actual value," said Fong. Fong explained that the government is looking at not just outright auctioning the Basay Mines but also asking development partners to assist them on a possible joint venture. "There's a technical term for it in mining, some sharing agreement. We're trying to get assistance on the modern good practices in the mining industry on how to sell it, we're trying to package it in a more responsible way," she noted. By Anna Leah Gonzales Article courtesy of the Philippine News Agency
Philippine Resources - May 18, 2023
Celsius Resources receives proposed acquisition by Silvercorp Metals; plans joint $5 million raise for MCB
Celsius Resources is pleased to announce it has entered into a non-binding term sheet and a binding subscription agreement with Silvercorp Metals Inc., a Canadian-based mining company engaged in the acquisition, exploration, development and mining of mineral properties. Highlights Celsius Resources Limited has entered into a non-binding term sheet with Silvercorp Metals Inc. with the following non-binding terms: Silvercorp proposes to acquire all of the outstanding shares of CLA at a fixed price of A$0.03 per share in exchange for consideration comprising 90% Silvercorp shares + 10% cash. The consideration of A$0.030 (GBP0.016)1 per share represents a 76% premium to the 20-day volume weighted average price of Celsius shares as of the close of trading on the ASX on 11 May 2023 (86% premium by similar reference to the trading price on AIM). The implied value of the proposed acquisition (should it proceed) is approximately A$56 million (GBP 30.2 million)1. Using Silvercorp’s current share price of CA$4.64 (A$5.142)as of the close of trading of Silvercorp shares on TSX on 12 May 2023, the proposed acquisition will result in Silvercorp issuing approximately 9.7 million Silvercorp shares and A$5.6 million to the shareholders of Celsius. Concurrent to the proposed acquisition, should it proceed, it is anticipated that Celsius shareholders will, via an in specie distribution, receive shares in a new exploration company (the “SpinCo”) which will hold all of Celsius’ rights and interests with respect to the Sagay (Philippines) and Opuwo Cobalt (Namibia) projects via a demerger, subject to Celsius obtaining the necessary shareholder and regulatory approvals. Should the demerger proceed, the SpinCo shares are anticipated to be distributed on a 10 Celsius shares for 1 SpinCo share basis to Celsius shareholders, who taking into account the proposed investment into SpinCo referred to below, will hold approximately 87% of SpinCo. SpinCo will seek listing on the Australian Securities Exchange (“ASX”) or on AIM, a market operated by the London Stock Exchange, via the demerger and concurrent initial public offering. Silvercorp has agreed, under the non-binding term sheet, to invest A$4 million in SpinCo, valued at a post-financed market capitalisation of A$30 million. Additionally, Celsius and Silvercorp have executed a binding subscription agreement for A$5 million at a subscription price of A$0.015 (GBP 0.0081), to be primarily used as interim funding for its Maalinao-Caigutan-Biyog Copper-Gold Project (“MCB Project”) in the Philippines. Celsius and Silvercorp will now commence negotiations towards the execution of the necessary binding transaction documents and agreements which will implement the proposed acquisition. About Silvercorp Metals, Inc. Silvercorp Metals, Inc. is a Canadian mining company traded on the Toronto Stock Exchange (TSX: SVM) and the New York Stock Exchange (NYSE American: SVM). Silvercorp has been profitably mining underground silver, lead, zinc deposits in China for 17 years and engages in the acquisition, exploration and development of resource projects globally with a focus on the sustainable, profitable, and long-term production of precious and nonferrous metals such as silver, gold, lead, and zinc. Its long-term strategy is focused on expanding mineral reserves, streamlining mine production management, achieving sustainable development, and seeking mutually beneficial opportunities globally. Through the years, it has successfully driven rapid growth and solid silver, lead and zinc production with a demonstrated and proven commitment to Environment, Social, and Governance standards while creating value for its stakeholders and shareholders. Silvercorp has a market capitalisation of US$607million with a current share price as of 11 May 2023 on the TSX of CA$4.64, and the NYSE of US$3.44. As of 31 December 2022, Silvercorp’s balance sheet is at US$210.3 million in cash and cash equivalents and short-term investments. Silvercorp holds further equity investment portfolio in associates and other companies with a total market value of US$121.8 million. (See Silvercorp Metals, Inc. website, http://silvercorpmetals.com ) Management commentary Julito Sarmiento, Executive Chairman of Celsius Resources commented: “This a positive step and timely development for Celsius and its subsidiaries. We are happy to have received an offer from Silvercorp which shares Celsius’ corporate values and our vision to develop mining projects in a sustainable, inclusive and responsible manner. Together, we have the potential to demonstrate and realise our commitments to all our shareholders and stakeholders to see the development of Celsius’ mineral assets, particularly our flagship MCB Copper-Gold Project with the Balatoc Indigenous Community in Kalinga, Philippines, through fruition. Indeed, this is a strong and favourable endorsement of the Philippines’ minerals industry under the Administration of President Ferdinand R. Marcos, Jr. in its unrelenting drive as spearheaded by the Department of Environment and Natural Resources under the stewardship of Secretary Ma. Antonia Yulo-Loyzaga, a globally-renowned climate change and disaster resilience expert, towards transformative mining that genuinely protects the environment and brings about shared prosperity for all stakeholders.” The complete press release can be found HERE
Philippine Resources - May 18, 2023
FNI revenues up 28 times, reports a net income in the first quarter for the first time
Photo credit: Global Ferronickel Holdings, Inc. Global Ferronickel Holdings, Inc. achieved Q1 2023 revenues of ₱1.1 billion and net income of ₱358.8 million, turning a first quarter profit for the first time in the company’s history. Earnings per share on net income attributable to equity holders of the company came in at ₱0.0296 compared to a loss of ₱0.0375 in the same period in 2022, mainly resulting from the commercial operations of its new mine in Palawan and the share in net income of its associate. FNI President Dante R. Bravo commented, “We had a solid start to 2023, coming primarily from our Palawan mine which benefits from medium-grade nickel ore. We expect a year of increased production, focused operational execution, and additional exploration drilling at our mine sites. Specifically, we plan to export 6.5 million wet metric tons (WMT), including 5 million WMT from Cagdianao and 1.5 million WMT from Palawan.” A total of 0.330 million WMT was shipped in the quarter, all of which are medium-grade nickel ore. The average realized nickel ore price was US$61.48/WMT and the average realized peso over the U.S. dollar was ₱54.82. In September 2022, FNI announced its first nickel ore shipment from its mine in Palawan, which is a significant step forward in establishing year-round mining operations for the company. With the successful daily operations and ramp-up in production, the Palawan mine reached its 1 million WMT production last April 29, 2023 and is set to ship its 1 millionth WMT by the end of May 2023. Additionally, the company acquired a 22.22% interest in GHGC Holdings Ltd., which gives FNI a 20% ownership in Guangdong Century Tsingshan Nickel Industry Co. Ltd, the owner of a 33-hectare rotary kiln-electric furnace processing facility in China that caters to customers from within and outside Guangdong’s Economic and Technological Development Zones. Beginning in the fourth quarter of 2022, these recent developments supported FNI’s earnings and will pave the way for a steady income stream throughout the year. Outlook The company’s financial results along with its recent operational achievements in key strategic areas point to a strong momentum going forward. On the demand side, the outlook for the nickel industry remains compelling, led by fundamental drivers such as population and income growth, urbanization, and energy transition. For more than a decade, China has been and will continue to be the world’s largest nickel consumer. In the short term, the easing of its COVID-19 restrictions as well as the reopening of the economy is expected to resume construction activity and support the recovery of demand for stainless steel and by extension on the nickel market. Additionally, China’s infrastructure investment plan can also shore up the country’s real estate sector. Reflecting these anticipated developments as well as the increasing usage of nickel in batteries for electric vehicles (EVs), intergovernmental organization International Nickel Study Group (INSG) now estimates the global demand for nickel to increase 11% from 2.89 million tonnes in 2022 to 3.22 million tonnes in 2023. In terms of price outlook, research provider Fitch Group revised up its LME spot price forecast by 10% from US$20,000 to US$22,000 per tonne for 2023, while S&P Global expects the average LME three-month price to climb 5% from a year earlier to US$26,838 per tonne. In the medium to long-term, nickel demand is projected to grow further due to its wide range of applications in renewable energy technologies and critical infrastructure including EVs, solar panels, power grid systems, wind turbines, and new technologies such as hydrogen-based energy. In fact, the World Bank identified nickel as one of the critical minerals in the clean energy transition that is cross-cutting because it is used across a variety of technologies and is not dependent on a single application. Within EVs, the World Bank finds that electric mobility has not only become key to decarbonization for several major economies, but also increasingly relevant for low- and middle-income countries (LMICs) over the next few decades. Its 2023 report, The Economics of Electric Vehicles for Passenger Transportation, suggests that global policy targets such as having 30% new passenger vehicles to be electric by 2030 will offer economic and financial advantages for many LMICs, with two-wheeled vehicles and buses as cost-effective starting points to transitioning to electric mobility. Overall, nickel demand from new EV sales is expected to surge 41 times between 2020 and 2040 under the International Energy Agency’s Sustainable Development Scenario. On the supply side, Indonesia and the Philippines will predominantly be the top nickel producing countries, as was the case since 2010. Looking ahead, INSG projects global nickel output to rise from 3.04 million tonnes in 2022 to 3.39 million tonnes in 2023, creating a market surplus of 171,000 tonnes. Over the medium to long-term, the Fitch Group is of view that global nickel mine production will grow by an average of 5% annually from 2022 to 2026, with strong nickel ore output from Indonesia and Philippines this year. Inevitably, with such huge potential also comes complexity. As a major nickel miner, FNI recognizes that there are external headwinds which may have a negative impact on its performance and in the industry including fuel price spikes, natural disasters, conflicts, increased mining taxation, and other factors over which it has no control. Despite these uncertainties, the company draws strength from the resilience that the organization has already shown over the years, underpinned by its highly experienced leadership team who has operated in most market conditions, and a clear strategy to continue to deliver for all stakeholders.
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Philippine Resources - May 09, 2023
DENR to implement ‘big brother-small brother’ strategy in mining
Photo: DENR Secretary Antonia Loyzaga The Department of Environment and Natural Resources (DENR) is mulling the implementation of a "big brother-small brother" strategy to capacitate small miners and enhance the resilience of the mining community. In a press release on Monday, DENR Secretary Antonia Loyzaga said they are planning to incorporate said strategy within the social development and management programs (SDMP) of large mining companies. “It is high time for big mining firms to help small-scale miners meet their social development targets by setting aside a portion of their social development fund for the purpose,” Loyzaga said. “There must be a way to negotiate the resilience of communities where mining is happening, the social development needs to happen. This way inclusivity in terms of the progress of the community as a whole can really be institutionalized," she added. To achieve this, Loyzaga emphasized the need to revisit the social development funding of large mining companies. She said that President Ferdinand R. Marcos Jr. is open to responsible miners who consider not only the environmental aspects of mining, but also promote social development. “In this government, you cannot move forward with your for-profit agenda without a national dividend that redounds to a local community. And that’s the bottom line,” she said. DENR Administrative Order No. 2010-21, or the Revised Implementing Rules and Regulations of Republic Act 7942, otherwise known as the Philippine Mining Act of 1995, requires mining contractors and permit holders to have an SDMP, which aims for the sustained improvement in the living standards of host and neighboring communities. With a timeline of five years, the SDMP is funded by the companies themselves by allocating 1.5 percent of their annual expenses. Out of this allocation, 75 percent goes to community development while 10 percent goes to the development of mining technology and geosciences, and the remaining 15 percent is used for an information, education, and communication campaign.
Philippine Resources - May 05, 2023
Ipilan Nickel Corporation receives ISO certification for its Environmental Management System
Photo credit: Global Ferronickel Holdings, Inc. The environmental management system of Ipilan Nickel Corporation (INC), the operating arm of Global Ferronickel Holdings, Inc. in Brooke’s Point, Palawan, has been recertified by Intertek last April 7, 2023 as conforming to the requirements of International Organization for Standardization (ISO) 14001:2015. The management system is applicable to INC’s mining operations including Development, Extraction, Hauling, Stockyard and Port Operations of Nickel Laterite Ore and other Associated Minerals covering barangay’s Maasin, Mambalot, Calasaguen and Ipilan. “This demonstrates that we take our environmental responsibilities very seriously as we constantly find ways to minimize our impact and consider all environmental issues relevant to our operations,” said Alex Arabis, Resident Mine Manager of INC. “It also reaffirms INC’s commitment to preserving the beauty of Palawan and adherence to best practices to promote a better future for everyone.” INC, which operates a Mineral Production Sharing Agreement (MPSA) with the government, holds the exclusive right to conduct mining operations in the Municipality of Brooke’s Point, Palawan covering 2,835 hectares, of which 260 hectares have been partially declared as mining area. The validity of its operations has been confirmed by the Department of Environment and Natural Resources (DENR) stating that INC remains compliant with all its requirements. INC continually strives to work together with all relevant stakeholders to achieve sustainable development and to maximize the benefits of responsible mining.
Philippine Resources - May 04, 2023
SMPC net income down 40% to P9B in Q1; power revenues hit all-time high
Photo credit: Integrated energy company Semirara Mining and Power Corporation (SMPC) recorded a 40-percent decline in consolidated net income from P15 billion to P9 billion mostly due to high-base effect, as the company posted its highest-ever quarterly bottom line during the same period last year. Consolidated topline contracted by 29% from P29.1 billion to P20.7 billion on weaker coal contribution, offset by all-time high revenues from the power segment. Coal revenues declined by 40% from P25.7 billion to P15.5 billion mainly due to lower shipments and selling prices as the company turned cautious amid market volatility. “We limited our first-quarter exports because of the wild price swings. Now that prices have settled, we intend to boost our foreign shipments in the coming months,” said SMPC president and COO Maria Cristina C. Gotianun. “Our sales target for this year is between 15 and 16 million metric tons,” she added. Total coal shipments from January to March receded by 31% from 5.1 million metric tons (MMT) to 3.5 MMT following a 52-percent drop in exports from 3.1 MMT to 1.5 MMT and flat domestic sales (2 MMT). Semirara coal average selling prices (ASP) decreased by 14% from P5,125 per metric ton (MT) to P4,427 per MT primarily due to sluggish exports and higher shipments of lower grade coal. Meanwhile, revenues from the power businesses rose by 59% from P4.8 billion to a historic high of P7.7 billion on the back of double-digit improvements across all key operating metrics. With the commercial operation of SEM-Calaca Power Corporation (SCPC)’s Unit 2 on October 9, 2022, overall plant availability surged by 48% from 58% to 86%, while total average capacity increased by 32% from 520 MW to 688 MW. Total gross generation rebounded by 44% from 914 GWh to 1,316 GWh, as three of the four SMPCowned power plants recorded better availability and average capacity. Consequently, total power sales accelerated by 37% from 908 GWh to 1,241 GWh, bulk (71%) of which was sold to the Wholesale Electricity Spot Market (WESM). Sales to the spot market expanded by 69% from 522 GWh to 880 GWh. Easing fuel prices and sluggish January demand led to a 2-percent dip in spot ASP, from P6.84/KWh to P6.69/KWh. However, higher spot sales and a 53-percent upturn in BCQ prices lifted overall ASP by 17% from P5.29/KWh to P6.17/KWh. Total spot purchases contracted by 33% from P493 million to P331 million because of better plant availability and capacity, coupled with slightly lower contracted capacity. At the end of the first quarter, only 26% of SMPC’s 720MW dependable capacity was tied to contracts, which were mostly under SLPGC.
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Philippine Resources - May 02, 2023
PHILEX MINING POSTS PHP388 MILLION CORE NET INCOME FOR 1Q2023
Philex Mining Corporation, one of the oldest and largest gold and copper producers in Southeast Asia, and a leader in right and principled mining, generated Php388 million Core Net Income and EBITDA of Php635 million for 1Q2023 against the backdrop of favorable gold prices and foreign exchange rates that kept them within safe margins as a continuation from the previous year. However, lower metal output held back these positive trends. The production level in 1Q2023 realized operating revenues of Php2.105 billion, lower than the Php2.528 billion for the same period in 2022. Gold prices in first quarter were higher at US$1,889 per ounce while copper was slightly lower at US$4.00 per pound. Operating costs were slightly lower than 1Q2022 at Php1.636 billion. PRODUCTION Tonnage milled for 1Q2023 was 6% lower at 1.706 million tonnes from 1.822 million tonnes in 1Q2022 as the Company continues to address issues with the grinding equipment at the mill plant. The requested replacement parts have already been ordered. Ore grades for Gold and Copper continue to hold to the same levels as in 1Q2022. Gold output for 1Q2023 was 17% lower at 10,062 ounces versus 12,097 ounces in 1Q2022. On the other hand, Copper output for 1Q2023 was 11% lower at 5.531 million pounds versus 6.181 million pounds in 1Q2022. OPERATING EXPENSES AND EBITDA Total operating costs and expenses for 1Q2023 stood at Php1.636 billion, at a similar level for the same period in 1Q2022 at Php1.655 billion. The increases in the purchase costs of the materials 3 and supplies as well as equipment parts and repairs were offset by the continued implementation of the efficiency measures in operations. Higher power rates increased operating costs and expenses despite lower production level. EBITDA generated for 1Q2023 reached Php635 million, or 46% lower than the Php1.182 billion in 1Q2022. OUTLOOK AND THE SILANGAN PROJECT The current global commodity outlook has turned bullish for Gold – in the face of geopolitical risks, recession and economic uncertainty – but bearish for Copper, in spite of the latter’s foreseen surge in demand due to its use in green technology. Price levels though were sustained within safe margins, has provided the Company with the breathing space to pursue its recovery program and much-needed repairs on its ageing equipment. Development works on the Silangan Project in Surigao del Norte are currently underway and are on schedule with completion of the construction of the east decline portal towards the end of the 1Q2023. Final preparations for the commencement of the development of the tunnel is on-going with the arrival of tunnelling equipment and accessories. Tunnelling works will commence in May 2023. The Company will likewise continue with its funding plan for Silangan commenced last year with the Stock Rights Offering. This involves a debt syndication effort and fresh capital infusion from the Company’s cash reserves. The Company is in the final stages of the debt syndication process with several financial institutions. “We will continue to push the frontier of the Silangan development, pursue improvements towards our recovery program and sustain the extension of the life of our Padcal mine,” according to Philex President and CEO Eulalio B. Austin, Jr. “Resilience is still the name of the game as we look for other business opportunities and for more participation in the ‘green metals space’. Time and again, the Company and its people have shown that they were able to withstand the challenges of the times with much fortitude, and this year won’t be any different.”
Philippine Resources - April 28, 2023
Malacañang Recognizes the 2022 PMIEA Recipients
Photo: Company officials of the 2022 PMIEA recipients with DENR Secretary M.A. Yulo Loyzaga, Executive Secretary L.P. Bersamin, and COMP Vice Chairman Mr. G.H. Brimo Recipients of the 2022 Presidential Mineral Industry Environmental Award (PMIEA) represented by their company officials attended the Ceremonial Awarding held at the Bonifacio Hall of the Malacañang Palace last April 20, 2023. The Executive Secretary of the Philippines Hon. Lucas P. Bersamin, Department of Environment and Natural Resources (DENR) Secretary Maria Antonia Yulo Loyzaga, and Chamber of Mines of the Philippines (COMP) Vice Chairman Gerard H. Brimo officially awarded the prestigious 2022 PMIEA trophies to the company representatives during the ceremony. The event was also participated by the PMIEA Selection Committee members and representatives, MGB Central Office officials and personnel headed by OIC Director Atty. Danilo U. Uykieng and Chief of Policy, Planning, and International Affairs Division and OIC Assistant Director in concurrent capacity Engr. Teodorico A. Sandoval, PMIEA Technical Working Group led by the Chief of Mine Safety, Environment and Social Development Division Engr. Marcial H. Mateo, and Regional Directors of MGB Regional Office Nos. II, III, IV CALABARZON, MIMAROPA, IX, X, and XIII. In her Welcome Address, DENR Secretary M.A. Yulo Loyzaga affirms the Department’s commitment towards responsible mining through the implementation of pro-people, pro-environment, and science-based legislation, policies, and programs. The DENR Secretary reminded the 2022 PMIEA recipients to always raise awareness of the mining industry’s vital contributions towards an inclusive and sustainable future. Executive Secretary L.P. Bersamin also recognized the importance of the mining sector as one of the government’s partners in long-term economic growth. By supporting the economic recovery of the country through their initiatives from the unprecedented COVID-19 pandemic, the current administration acknowledges the valuable role of the mineral sector in achieving its goals for the Filipinos. The Executive Secretary emphasized that the PMIEA is ultimately bestowed by and should always be for the people. Pursuant to Executive Order No. 399, series of 1997, the PMIEA is given every year to mining groups and companies that have shown exemplary performance in safety and health management, environmental protection and enhancement, and social and community development. The 2022 PMIEA were conferred to the following Contractors/Permit Holders during the Ceremonial Awarding: Article courtesy of the DENR
Philippine Resources - April 14, 2023
GSIS INVESTS P1.46 BILLION IN NICKEL ASIA CORP
Photo Credit: Arrow Creatives State-run pension fund Government Service Insurance System (GSIS) has invested P1.46 billion in natural resources development company Nickel Asia Corp. The GSIS investment involved a purchase of a total of 233,558,653 common shares, done through a block sale approved by the Philippine Stock Exchange on April 12, 2023. “GSIS’ investment in NAC shows that it is possible for a company to grow responsibly. Our commitment to sustainable development is something we take seriously, and we are happy to attract like-minded entities that believe in the value of responsible mining and renewable energy” NAC CEO and President Martin Antonio Zamora said. “GSIS continues to look for ways to lengthen its fund life through viable investment opportunities such as the successful vertically integrated mining ore production and processing businesses of NAC. Our decision to invest in NAC supports the goal of safely growing our funds for our members’ benefit, while positioning strategically to aid both the Electric Vehicle industry and nation-building,” GSIS President and General Manager Wick Veloso said. By 2025, NAC aims to achieve its twin goal of becoming a premier ESG investment in the country and becoming one of the top 25 companies in the Philippine Stock Exchange in terms of market capitalization. Article courtesy of the Philippine Stock Exchange
Philippine Resources - April 10, 2023
Benguet Corp. posts P4.03-B consolidated revenues
Photo credit: Benguet Corp Listed miner Benguet Corporation (BC) registered consolidated revenues of PHP4.03 billion in 2022, up by 5 percent from PHP3.84 billion in the previous year. In a statement issued on Monday, the company said its revenues were generated mainly from nickel, gold and lime sales. It sustained strong performance with operating income that rose from PHP1.57 billion in 2021 to PHP1.66 billion in 2022. After tax, net income stood at PHP1.33 billion lower compared to PHP1.42 billion in 2021 as fluctuations in non-cash revaluation adjustments declined but still commendable given the current economic volatility due to pandemic hangover. The upward trend was supported by elevated metal prices and favorable foreign exchange that prevailed through most of the year, it said. During the 68th annual National Mine Safety and Environment Conference held last Nov. 18, the company’s nickel subsidiary, Benguetcorp Resources Management Corporation, was the recipient of Platinum Achievement Award – Surface Mining Operation Category, while Irisan Lime Project (ILP), also a subsidiary, was a runner-up in the Safest Mineral Processing – Calcining Plant Category Award. Benguet Corporation said these awards are testament to its sustainability endeavors and commitment as a responsible mining company. Article courtesy of the Philippine News Agency
Philippine Resources - April 03, 2023
APEX MINING POSTS PHP 3.339 BILLION NET INCOME IN 2022
Photo credit: Apex Mining Apex Mining Co., Inc. recorded a PHP 3.339 billion consolidated net income in 2022. Meanwhile, consolidated revenues reached Php10.310 billion. The consolidated revenues were up 39% YoY with gold accounting for Php9.854 billion and silver Php0.456 billion. Apex Mining’s consolidated net income increased 408% YoY. Total volume of gold sold by Apex Mining was 101,096 oz, an increase of 28%; silver sold totaled 382,345 oz, an increase of 6%. Realized prices were $1,797/oz (+1%) for gold and $21.78/oz (-11%) for silver. The expansion plans that were rolled out in 2022 generated the desired efficiencies. The two operating mines namely, Maco and Sangilo increased their milling capacity by 250 tpd (up 11%) and 200 tpd (up 100%), respectively. The Maco mine averaged 2,330 tpd which resulted in a total tonnage milled of 815,910 tonnes (higher by 15% YoY). Coupled with higher feed grades of gold (3.96 gpt) by 6%, the resulting gold production of 91,072 oz and silver production of 377,729 oz were up 23% and 5%, respectively. ISRI milled a total of 131,481 tonnes in 2022 and produced 9,270 oz of gold and 629 oz of silver. Consolidated cost of production was up 28% at Php5.433 billion. Mill production was up 15% but the cost of materials and supplies only accounted for 12% of the increase. Other factors that caused the uptick include depreciation and depletion costs (6%), personnel cost (3%), and repairs and maintenance (2%). The resulting consolidated net income after tax is Php3.339 billion, an increase of 408% YoY. The consolidated revenues and net income are an all-time high for Apex Mining.
Philippine Resources - March 28, 2023
FNI reports 2022 net income of ₱2.2 billion and provides update on strategy
Photo credit: Global Ferronickel Holdings Global Ferronickel Holdings, Inc. (PSE: FNI) delivered resilient financial results and key operating achievements in 2022, with net income growing 9% to ₱2.2 billion and earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanding to 48% from 39% in the previous year. “Our performance during the year showed our Company’s ability to evolve and make further progress against our strategic priorities,” said Dante R. Bravo, FNI President. “Most notably, we completed the commissioning and started commercial export of nickel ore from our mine in Palawan. We also completed the acquisition of a 20% stake in Guangdong Century Tsingshan Nickel Industry Co. Ltd (GCTN), the owner of a 33-hectare rotary kiln-electric furnace (RKEF) processing facility in China that caters to customers from within and outside Guangdong’s Economic and Technological Development Zones. Finally, for the second consecutive year, we received the highest Presidential Mineral Industry Environmental Award by the Department of Environment and Natural Resources and the Philippine Mine Safety and Environment Association in recognition for our environmentally and socially responsible surface mining operations.” Revenues decreased 13% year-over-year to ₱6.7 billion due to adverse weather, partially offset by a rise in medium-grade ore prices and a favorable foreign exchange impact when compared to 2021. Total shipped volume declined 24% to 3.735 million wet metric tons (WMT) resulting from weather events such as more rain days that affected the production of nickel ore. Overall product mix was 76% low-grade ore and 24% medium-grade ore with an average realized price slightly lower by 0.3% from prior year to US$31.68 per WMT. “The start of commercial operations at the Palawan mine along with the acquisition of 20% interest of GCTN, both in the fourth quarter, should enable us to carry out production all year-round and generate improved financial growth as we scale and integrate the business. We believe this positions us to achieve more consistent profitability throughout the year. It will also allow us to benefit from higher nickel prices and China’s ongoing reopening, which is expected to prompt a rebound in stainless steel production and in the new energy vehicle supply chain.” "Moving forward, we are very excited about expanding our nickel ore production by 20% this year with the addition of our Palawan mine with an annual production capacity of 1.5 million WMT that would complement our Surigao mine's 7.5 million WMT. We are also on track with our medium-term strategy which includes the construction of a steel processing plant in Mariveles, Bataan and its commercial production, and the development of a nearby port,” Bravo concluded. Article courtesy of Global Ferronickel Holdings
Philippine Resources - March 21, 2023
Global Ferronickel Holdings, Inc. signs purchase agreement with Baosteel Resources for 1.5 million WMT
Photo credit: Global Ferronickel Holdings Global Ferronickel Holdings, Inc. (FNI), has just signed an Annual Purchase Agreement with Baosteel Resources International Co. Ltd. for the supply of 1.5 million WMT of nickel ore for the 2023 mining season. The nickel ore will be coming from FNI’s operating mines in Surigao del Norte and Palawan, operated by Platinum Group Metals Corporation (PGMC) and Ipilan Nickel Corporation (INC), respectively. “Our two operating mines have given us the ability to undertake year-round production to better support the growing demand from China. The easing of COVID-19 restrictions and the robust growth of China’s property sector that is driving the need for stainless steel will help boost the nickel industry,” said Dante R. Bravo, FNI President. Should stockpile inventory permit, one-third of the shipment will be composed of lowgrade nickel ore with 0.90% nickel content and 49% iron content while the remainder will be medium- to high- grade nickel ore with 1.30%-1.60% nickel content and 15%- 25% iron content. The selling price of each shipment will be set on a monthly basis according to the prevailing market price at the time of price setting. Baosteel Resources International Co., Ltd. is a wholly owned subsidiary of the top Chinese steel manufacturing corporation China Baowu Steel Group and is engaged in the business of mineral resource investment, trading, and logistics services. Notably, the company highly specializes on trading of metallurgic raw material with annual volume of over 60 million tons covering a vast range of products such as iron, ore, coal, alloys, non-ferrous metals, ferrous scraps, metallurgical flux, etc. Baosteel Resources maintains over 100 overseas suppliers and over 40 overseas clients. The Company’s headquarters is located in Hong Kong with footprints in Australia, Singapore, South Africa, Indonesia, and several others. Article courtesy of the Philippine Stock Exchange
Philippine Resources - March 21, 2023
Celsius enters into initial binding deed and agreement with local companies to progress MCB Project
Photo: Signing of Binding Deed and Agreement (Left to right: PMR Holding Corp. President Dan Chalmers, CLA Chairman and MMCI President Atty. Julito “Sarge” Sarmiento, Sodor, Inc. President Ms. Erika Chalmers, and CLA Executive Director and MMCI Country Operations Director, Peter Hume). Celsius Resources Limited is pleased to announce that on 17 March 2023 the Company’s wholly owned subsidiary, Makilala Holding Limited ("MHL"), entered into a binding deed with Sodor, Inc. for Sodor to acquire a 60% legal ownership in Makilala Mining Company, Inc. (“MMCI”) for consideration of PHP 300 million (approximately A$8.2 million as at the date of this announcement), on terms and conditions described in the following paragraphs. The signing of the Deed is a significant milestone as it will enable MMCI to apply for an MPSA for the MCB Project with the Philippine Government. As previously advised by the Company, under Philippine law, an MPSA must be held by a company that is at least 60% Filipino owned. In addition, the Company and its wholly owned subsidiaries MHL, MMCI, and PDEP Inc. (“PDEP”) entered into an accompanying binding letter agreement with Sodor and its affiliate PMR Holding Corp. (“PMR”) (together, the “Parties”) to agree on the timeline for, and that delivery to Sodor Inc. of share certificates representing 60% of MMCI’s outstanding shares pursuant to the Deed shall be made only after, the funding by Sodor Inc. and PMR of approximately ~US$43 million for a 30% economic interest in the MCB Project ("Funding Commitment"). 3 The MCB Project will be composed of MMCI and PDEP, both wholly owned subsidiaries of Celsius. The Parties shall rescind the Deed if Sodor and PMR are not able to provide the Funding Commitment within two years from signing, unless the period is shortened or extended by mutual agreement of the Parties. As at the date of this announcement the amount of the Funding Commitment, which is inclusive of the MMCI Consideration, is approximate as the Parties will confirm the size and timing of payment of the Funding Commitment following completion of a bankable feasibility study on the MCB Project. Provision of the Funding Commitment also remains subject to completion of negotiation and execution of binding definitive long form legal documentation. The Philippine Government has otherwise advised MMCI that it has met all of the other technical requirements to obtain the MCB Project’s required environmental and mining permits. Celsius Non-Executive Chairman and MMCI Chairman and President, Atty Julito R. Sarmiento, commented: “We are indeed honored to have Sodor Inc. as our local partner in our vision to develop the MCB Project as a model for Transformative Mining in the Philippines. Our principles and visions are aligned, which is a powerful step towards developing and operating the MCB Project in a responsible and sustainable manner benefitting both our shareholders and local stakeholders. It has always been our commitment, particularly to the Balatoc Tribal Community, that central to the mine development is cultural respect, social development, and environmental protection. Sodor Inc. shares the same commitment, and is thus a perfect partner in developing the MCB Project.” Article courtesy of Celsius Resources. The full press release can be found HERE
Philippine Resources - March 20, 2023
Loyzaga calls for end to gender inequality in mining sector
Photo credit: Marcelle Villegas Environment Secretary Antonia Loyzaga has underscored the need for the mining sector to prioritize actions to end gender inequality as part of the effort to promote responsible mining. In her keynote speech, Secretary Loyzaga underscored the need to ensure that women’s representation in the mining industry is meaningful , substantive, and in all levels of decision making. The environment chief discussed pressing issues affecting women, including indigenous women, in the mining sector and the impacts of the industry on communities. She pointed to a 2020 scoping study commissioned by the Philippine- Extractive Industries Transparency Initiative (EITI), which listed key issues women face in the mining industry, such as gender-inequalities in the workplace, challenges they face as a result of environmental problems due to mining operations, lack of livelihood outside employment by mining firms, and absence of guidelines on the inclusion of gender-responsive projects in the Social Development and Management Programs (SDMP). An SDMP, as required by the Philippine Mining Act, lays down the comprehensive five-year plan of a mining firm on how it would conduct its actual mining and milling operations toward the sustained improvement in the living standards of the host and neighboring communities. Loyzaga lamented that women constitute the minority in the sector’s workplace and only a few women occupy technical and leadership positions, prompting her to call for “an enabling and empowering environment for women.” “We hope that this will include the upscaling, strengthening STEM (Science, Technology, Engineering and Mathematics) education to motivate women to pursue careers that are very important and related to the industry,” she said. Loyzaga also noted that women are most affected by degradations linked to mining operations, such as pollution of rivers and drying up of water sources, and that “these have added pressures on women as household managers and also as providers.” The EITI-commissioned study likewise said that there are gaps in the context and implementation of policies and frameworks to address gender dimensions in the mining industry. Loyzaga said this is one area that can be looked into when revisiting the Philippine Mining Act of 1995. “We will be looking at this in tandem with the Magna Carta for Women,” she added. In closing, Loyzaga stressed that women should be recognized “not because they are women, but for the merit that they bring to the purpose of their organizations.” “We cannot just rest on our laurels and say we need to be recognized. We must be women of substance, women of purpose, and women of achievement,” she pointed out. Article courtesy of the DENR