Understanding Institutional Investors’ appetite for investments in the #Philippines #mining sector
At Asia Mining Congress 2012, Mr. Quiros opened his speech with the major concern of institutional investors which is, if the mining companies we invest in are engaged in activities that protect the environment, sustain economic development, and allow the equitable sharing of benefits among the company, the government and the host communities.
Before touching base on the topic per say, the investing nature of SSS is such that they will only invest in companies with proven track record of profitability, being listed in the stock exchange, and having cash dividends insurance. Mr. Quiros mentioned that such guidelines are pertinent to ensure an investor limits one’s losses if the economy were to turn upside down.
Since 1987, SSS bought 29.2 mil shares in Philex Mining, owning 19.3% of Philex Mining. At the end of 2005, this investment started to flourish largely because of the increase in cost of gold by over 2500%. This resulted in the share price of Philex increasing by 1100%, since SSS first invested in Philex till today.
For investing in the mining industry, a long term investment of more than 10 years will likely prove profitable as Investment in the mining industry is not for short term investments or to “make a quick buck.” With the Philippines being identified as one of the most mineral rich land where, 30% of the land being mineral area with only 1.5% being actively mined, investments into the mining industry in the Philippines will definitely flourish.
Mr. Quiros further went on to mention that the country (the Philippines) is located near to the fastest growing economies of the World, China and Japan. Though the % of GNP is small, the value of the mining industry has seen a growth rate of 20% from 2001. In the past 10 years there has been a strong demand for mining products and hence, investment in mining industry will prove profitable. This is further strengthened by the strong worldwide demand for base and precious metals leading to increased production volume in Philippines mining sector especially in copper, gold and nickel.
To find out more about what was discussed or to download videos and white papers from Asia Mining Congress, visit our website now: www.terrapinn.com/asiamining