A Philippine-based Copper and Gold Producer with high risk Petroleum kickers.
PXMFF (May 30, 2019) Philex Mining is a Philippine based copper and gold miner, that owns truly amazing resources. Padcal mine, in operation since 1958, has 600K oz gold proven, with 2.6M oz. resources, paired with 216 million pounds Cu proven, and 1 billion+ pounds copper resources. Then, the Silangan Project has a PFS with resources of 9 million oz gold and 4.9 billion pounds of copper.
Not enough ? Bulawan shutdown in 2002 due to low prices, in care and maintenance, adds another million ounces gold... with drilling done now, with 17 new holes looking at expanding the resource before completing a PFS. Another high potential prospect on hold for community relations.
Still not enough ? Also owns, as the parent company, a controlling interest in PXPEF or PXP Energy which has a market value higher than its parent... though it is largely funded by the profits of its parent, which has the Debt/Equity way down at 14%. Reorganized and re-named in April 2018 trading then at $0.33 but now its at only $0.11. Many high potential interests in hand... but, not risk free, and not close to being profitable. The speculative future value here (See also Forum Energy Limited, formerly AIM, now private, and FEC Resources, or FECOF) is tied, in part, to a 50% interest (from Forum's 70%) of SC72... otherwise known as the Scarborough Shoal... part of the disputed South China Sea that is threatened by China, but solidly inside the PI's 200nm economic limit. Exploration has been being obstructed by China's purposeful interference... but China got a quiet tap on the shoulder from the U.S. and has not proceeded as they have on other Philippine owned shoals.
Meanwhile, though, Philex Mining is profitable, trades at 7 times earning, yields 3%, and is valued by the market at only 1/3 its enterprise value, with the debt/equity at 40%. Headwinds... include market entry timing issues in relation to the same concerns any primary copper producer has... but with additional foreign corporation risks, some obvious geopolitical risks, including the brewing conflict with China... putting it in a war zone as a target if there's a war. Those risks on the oil side are extensive enough that it seems they've been almost entirely discounted in the share price... so the upside if they're not realized is very substantial, while the downside if they are realized is already largely priced in. The market that matters in following these shares is mostly the primary trading venue, the Philippines Stock Market, with news in the Philippines papers available online, in English. That also limits the upside, but it pays you to hold the risk and upside potential in the meanwhile. |
