Mining investments drop by 48 percent D&L sees P1.15-B income at yearend
INVESTMENTS in the country’s mineral sector dropped by almost half in the first six months of this yea,r because of delays in projects as a result of uncentainties brought about by the Aquino government’s mining policy.
In an interview on the sidelines 59th National Mine Safety and Environment Conference in Baguio City, Leo Jasareno, Mines and Geoscience Bureau director, said that mining investments fell by 48 percent to $160 million in January-June 2012, compared to last year’s $309.31 million.
Jasareno noted that a large portion of the realized investments during the period—roughly $30 million—were attributed to Philsaga Mining Corp., the operator of a gold mine in Agusan del Sur province; and Sagittarius Mines Inc., the government contractor for the $5.9-billion Tampakan copper-gold project in South Cotabato province.
The rest of the investments made for the period were smaller companies for expansion activities, Jasareno noted.
The MGB earlier projected mining investments to reach $2 billion. In 2011, total realized investment reached $624.06 million.
With an increment of 84 percent in the first half of 2012, the MGB chief said that they will revise targets for the rest of the year, adding that they will come up with the official data next week.
“Because of the slower inflow of investments, we will obviously revised out targets. We will consolidate it,” he said.
Investments in the mining sector has significantly slowed down since last year, prior to the approval of Executive Order No.79.
The new mining policy prohibits the acceptance of new mining application pending the identification of sites where mining activities would be restricted or prohibited.
D&L Industries, the country’s leading manufacturer of food ingredients and specialty plastic colorants and additives, is eyeing a P1.15-billion income for its full year net income, or an 18 percent increase from the P977 million it registered in the previous year.
At the sidelines of a presentation during the firm’s initial public offering (IPO) roadshow, D&L Executive Vice President and Chief Financial Officer Alvin Lao told reporters that the company’s average monthly earnings in the first seven months of 2012 was significantly higher compared to the average of P47 million in the last five months of 2011.
“Our intent is to continue to grow the business so we may maintain that P96 million income a month,” he said.
“And you multiply the P96 [million] by 12, you’ll get the number P1.15 billion, which is significantly higher than the P977 million in net income in 2011,” Lao added.
He also said that the P1.15-billion net income is feasible if the firm’s average monthly profit in the first seven months of 2012 is annualized.
“While this is not a profit guidance for 2012, you can simply assume a net income of about P1.15 billion based on the average monthly earnings of about P96 million for the first seven months of the year,” he specified.
Industry dominance
D&L is considered an indirect consumer play since it manufactures products for use by food, electronics, fuel and health and beauty companies. It gets 80 percent of its revenues from the supply of food ingredients to the country’s top restaurant chains and branded food products.
According to the roadshow presentation, D&L is dominating every industry that it is engaged in, with a market share of at least 50 percent in the fats and oil (50 percent market share), aerosol ( 54 percent), colorants and additives (54 percent), and oleochemicals ( 54 percent) businesses.
D&L is set to undertake its IPO with a maximum size of P5.9 billion in both the local and overseas equities markets.
The firm also set a price range at P3.85 to P4.80 per share.
Lao said that they decided to set the price range below the market’s price-to-earnings ratio based on the advise of their underwriter, with the intent to leave something on the table for their investors.
During the IPO’s domestic roadshow, Maybank ATR Kim Eng Capital Partners Managing Director Roberto Benares said that the final offer price will be set on November 26, 2012, after the international roadshow.
The firm is selling 1.07 billion primary common shares to raise P4.12 billion to P5.14 billion from the local and overseas markets. Its majority shareholder Jadel Holdings is also setting aside 160.7 million secondary shares as an overallotment option.
D&L will be going on an international roadshow from November 19 to 23, and will be pricing its IPO shares shortly after.
Tentative date for the offering is from November 28 to December 6, while the shares will be targeted for listing on the first board of the Philippine Stock Exchange on December 12.
Proceeds from the offering will be used for investments and acquisitions, for the payment of financial obligations and for general corporate purposes. Dear Sally,
The holidays are indeed a peak season for shipping boxes to our loved ones. Valuable items are enclosed in these packages thus, must be dealt with utmost care. In order to guide you on your first time of sending gifts to your family, here are the common facts and tips that the Department Trade and IndustryPhilippine Shippers’ Bureau (DTIPSB) can give you.
Q. What are the tips in shipping balikbayan boxes?
A. Organize all the things you want to send through a box. This would give you an idea on the size of box you would need to use.
Have your balikbayan boxes delivered by PSB-accredited sea cargo consolidators/freight forwarding companies only. The DTI-PSB accredit sea freight forwarders while the Civil Aeronautics Authority of the Philippines ( CAAP) for air freight forwarders. Senders may check the list of accredited cargo consolidators in the DTI website.
Most complaints for non-delivery of cargo involve companies charging very low door- to- door rates. In these cases, the foreign principals do not have enough funds to bear the cost of transporting the cargos, compounded by their failure to remit releasing and delivery funds to their Philippine breakbulk agent causing the shipments to be abandoned at the ports.
Accomplish a detailed packing list stating all the contents of your box and value of shipment, per item if possible, as well as your preferred shipping date. Inquire for proper or standard packing, wrapping, strapping, sealing and labelling requirements of your box. These would include the cargo receipt and Bill of Lading – a document issued by a transportation carrier to the shipper as proof that they have received the cargo shipment and have placed them on board a particular vessel for delivery to a particular destination. It also states the transport terms in which the received cargo shipments are to be carried and delivered.
Inform your consignee to check your cargo with the Philippine freight forwarding agent even before it arrives. Make sure to inspect the seal and wrapping of the box before signing the delivery receipt. If you see signs of tampering, do not receive the cargo and ask the delivery agent to have it double-checked.
Q. Where can we file a complaint regarding shipping bayan boxes?
You may file your complaint with the Philippine Shippers’ Bureau of the Department of Trade and Industry at the Second Floor, Trade and Industry Building, 361 Senator Gil J. Puyat Avenue, Makati City or call for assistance through DTI Direct Hotline (02) 751-3233.
Complainants should submit a written complaint supported with documentary evidences such as official receipts, cargo receipts, bills of lading, shippers’ declaration, way bills, etc.
Q. How does the DTI-PSB handle these complaints?
DTI-PSB has a mediation and arbitration unit which handles/resolves consumer complaints.
Q. What items that should not be sent thru balikbayan boxes?
Items that should not be sent through boxes include currencies, checks, money orders, traveller’s checks, jewelries, firearms, ammunitions, explosives, prohibited drugs and other substances, pornographic materials, gambling cards, toy guns and pirated products.
Q. What sanctions/penalties can the PSB impose on freight forwarders proven violating policies on
boxes? PSB may impose monetary fines, suspension or cancellation of accreditation pursuant to Administrative Order. No. 6 Series of 2005. The Department of Trade and Industry welcomes all inquiries, complaints, comments and suggestions from consumers. Call DTI Direct at 751- 3330 from Monday to Friday from 8: 00 in the morning to 5: 00 in the afternoon or visit the DTI website www. dti. gov. ph.