The Philippine Stock Exchange (PSE) said that over a hundred mining firms are qualified for listing as it noted the dearth of new entrants to the local bourse.
PSE president and chief executive officer Francis Lim said there are only 14 mining companies currently listed on the exchange and the number could have been higher were it not for some mining firms that listed in markets overseas.
Among these firms that have opted to list abroad include TVI Pacific, Pearl Asian Mining, Sur American Gold, Mindoro Resources, Toledo Mining, and Lafayette Mining.
“Just imagine the value turnover that could have been added to our market, not to mention the opportunities that could have opened up to more Filipino investors, had these mining firms listed in our stock exhange,” Lim said.
Lim said these mining firms reckoned that investors prefer markets with reporting methods and procedures that are more or less harmonized to avoid the hassle of re-adjusting their calculations, investment criteria or matrices as they hop from one market to another.
He, however, expressed confidence that the recently-formulated Philippine Mineral Reporting Code will attract more mining firms to list on the PSE. The PMRC, which was patterned after the Codes from Australia, Europe, Canada, and South Africa, sets outs minimum standards, recommendations and guidelines for public reporting in the Philippines of exploration results, mineral resources and ore reserves.
The PMRC applies to reporting of all solid minerals, including industrial minerals and coal where public reporting is required by the PSE. It must be followed for annual reports, quarterly reports and other reports required by the PSE. It even applies to briefings for shareholders and investment analysts and to materials being posted in company websites.
Market capitalization of listed mining firms amounted to P42.7 billion last year or an increase of 58 percent from the previous level and slightly higher than the 57 percent growth recorded by all listed domestic companies.
In the seven months ending July this year, market capitalization of all listed mining firms jumped by 74.5 percent to P74.6 billion year to date. In contrast, total market capitalization of all domestic listed companies went up by only 29.2 percent.
The value turnover of mining stock transactions surged 102 percent.
“We in the PSE don’t want the mining sector to lag behind because we have always considered mining as an industry that will help us accelerate the growth not only of our market but of our economy,” Lim said.
The mining companies listed on the PSE, on the other hand, include Apex Mining Inc., Abra Mining & Industrial Corp., Atlas Consolidated Mining & Development Corp., Benguet Corp., Dizon Copper Silver Mines Inc., Geograce Resources, Lepanto Consolidated Mining, Manila Mining, Nihao Mineral Resources International, Omico Corp., Philex Mining, Semirara Mining, United Paragon Mining and Vulcan Industrial Mining.