Philex Mining Corporation is looking to raise up to P3.15 billion from its planned stock rights issue offering (SRO).
In a disclosure to the stock exchange, the listed company said the board of directors approved a plan to undertake a stock rights issue offering (SRO) for eligible shareholders.
Phile Mining Chairman Manuel V. Pangilinan, CEO Eulalio B. Austin, Jr. and Chief Finance Officer Romeo B. Bachoco were authorized by the board to set the terms and conditions of the SRO, including determining the “final issue size which shall be up to P3.15 billion.”
The final terms will still need to be ratified by the board.
“The net proceeds from the SRO, together with debt being arranged by a leading local financial institution and internally generated cash of Philex Mining, will be utilized for the development of the Silangan Copper and Gold Project through wholly owned subsidiaries Silangan Mindanao Exploration Co., Inc. and Silangan Mindanao Mining Company, Inc. and for general corporate requirements,” the company said.
Philex Mining said the First Pacific Group, a major shareholder, is “highly supportive” of the SRO.
THIRD QUARTER RESULTS
Meanwhile, Philex Mining reported a P721.3-million net income in the third quarter, up 46% from the same period a year ago, “mainly due to higher copper prices, favorable foreign exchange rates and managed operating expenses.” This brought the nine-month net income to P1.880 billion, 105% higher from a year ago.
Core net income for the July to September period jumped 55% to P716 million, bringing the nine-month core profit 116% higher to P1.865 billion.
Philex Mining saw higher revenues due to the “favorable” foreign exchange rate and high prices for gold and copper.
Revenues rose 13% in the third quarter to P2.656 billion, helping drive nine-month revenues 22% higher to P7.742 billion.
“This is attributable to the significant increase in the realized price of copper since 3Q2020 resulting into a higher contribution of revenues from copper at 52% of total revenues for 9M2021 from 40% of total revenues for 9M2020,” the company said.
Revenue contribution from gold slid by 59% in the first nine months of the year due to “slightly lower gold output.”
“With higher metal prices and a better economic outlook for the mining industry moving forward, we can maintain the momentum of last year’s exemplary performance into this year, notwithstanding the pandemic and the challenges we have faced in our operations,” Mr. Pangilinan said in a separate statement.
Philex Mining is one of the Philippine units of Hong Kong-based First Pacific, the others being Metro Pacific Investments Corp. and PLDT Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has interest in BusinessWorld through the Philippine Star Group, which it controls. — BADA