Manila Standard Today / Business Stories
Saturday-Sunday, March 1-2, 2008
Mining companies are still willing to go public to raise funds despite a weak stock market.
“There is no slowing down in the demand for commodities, particularly mining,” said Patrick Loftus Hills, UBS managing director for investment banking in Asia.
Hills, in a presentation during the 8th Mining Industry Lecture Series in Intercontinental Makati, told mining companies that an initial public offering remained an attractive option to generate funds.
Sustained and the continued appreciation of metal prices worldwide was a good reason to invest in mining projects, he said.
“We are very positive in most commodities. I say that gold, silver, copper and nickel prices will continue its uptrend in the next years. Gold will breach the $1,000 per ounce mark in days and maybe reach $1,200 per ounce in months,” he said.
He said copper value would soon reach $4 a pound, while the commodities market in general would continue to develop until 2016.
“The Philippine has a lot of untapped areas in terms of commodities. There are new areas where commodities have not yet been explored,” he said.
Chamber of Mines of the Philippines president Philip Romualdez said there were a bunch of mining companies interested to list either in the local or foreign bourse.
“While the stock market is weak and there is this general trend of withdrawal from the market, interest in mining has never been this earnest,” he said.
Estimates made by the National Economic and Development Authority indicate that the country’s mineral wealth is in the range of $840 billion.