Profiling: Alsons Consolidated Resources, Inc. (PSE: ACR)

Alsons Consolidated Resources, Inc (ACR, the Company) has major investments in power generation and property development.

Power Generation

ACR’s interest in power generation is through Conal Holdings Corporation (Conal) and Alsing Power Holdings, Inc. (Alsing).

ACR1

WMPC operates a 100 MW diesel-fired electricity generating facility in Zamboanga City under an 18-year “Build-Operate-Own (BOO)” agreement with National Power Corporation (NPC) until December 2015. SPPC operates a 55 MW diesel-fired electricity generating facility located in Alabel, Sarangani Province, also under a BOO agreement with NPC for 18 years until May 2016.

The Company through SEC is presently developing 200 MW Coal-Fired power plant in Maasim, Sarangani which is expected to be in commercial operations in 2015. ACR is also developing a 100 MW coal-fired power plant in Zamboanga City through a subsidiary, SRPI.

On May 18, 2012, ACR increased the authorized capital stock of SEC from P5 million to P4.25 billion. On July 6, 2012, ACR infused P265 million to SEC representing payment in the initial subscription. As of November 13, 2012, ACR is in the process of finalizing local banks for a P9 billion project loan to finance the construction of SEC.

The Company, through MPC, is also working to acquire from the Iligan City government the 102 MW bunker-fired Iligan Diesel Power Plants I and II (IDPP).

Property and Utility

ACR2

ACR is engaged in property development through its subsidiary, Alsons Land Corporation (ALC). ALC has interests in Eagle Ridge Golf & Residential Estate (Eagle Ridge) and LiMA Technology Center (LTC).

Eagle Ridge is a joint venture project with Sta. Lucia Realty Development, Inc. (SLRDI). Eagle Ridge is a 700 ha project located in Gen. Trias, Cavite and the first 72-hole golf course development with a residential component in the Country. It is the only golf club in the Philippines with four completed signature golf courses and three fully operational clubhouses.

LTC is a 440 ha industrial estate located between the Lipa City and Municipality of Malvar in the Province of Batangas. The techno-park is a joint-venture with Marubeni Corporation of Japan under the corporation LLI.

To maximize the use of its landholdings, ALC launced “Campo Verde,” a joint venture with Sunfields Realty Development, Inc. The 11 ha property is located within LTC and an hour away Makati via the South Luzon Expressway.

To ensure the reliability of power and the quality and availability of water supply and wastewater treatment at LTC, LLI organized LUC and LWC.

Other Investments

ACR mining projects are pursued by a wholly owned subsidiary ACR Mining Corporation (ACRMC). ACRMC has a mining claim covered by MPSA 094-97-XL for 25 years or until 2022. Detailed work revealed an estimated resource of 2.7 million tons containing 2.8 g/t gold, 26 g/t silver, 0.09% copper, 0.85% lead, and 1.58% zinc.

On December 23, 2010, ACR purchased 29,149,000 shares or 2.46% interest of Indophil Resources, NL (Indophil) in the amount of P1.316 million. Indophil has 37.5% interest in the Tampakan Project as of December 31, 2011. [1]

 

 

Source:

  1. Indophil 2011 Annual Report, Note 19, p. 71, http://www.indophil.com/documents?category=Annual
  2. ACR Sec filings

 

Disclaimer: I do not claim to be an expert and nothing I say should be taken as a recommendation to buy or sell.

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16-year old Stock picker, Gambling Industry, Ethanol, Tampakan, Stock Thoughts: PX

16-year Old Stock Picker

Check this out:

http://www.bloomberg.com/video/is-this-16-year-old-stock-picker-the-next-buffett-lJswdaHVSASgGYCfWGrfzA.html

Investing in what you already know is a good way to invest but it does not mean you stop expanding your knowledge. 🙂

 

Gambling Industry

An idea on how big the gambling industry:

http://www.businessmirror.com.ph/index.php/news/top-news/9453-gambling-betting-activities-now-a-p42-billion-industry

This may be a good reference in analyzing gambling stocks.

 

Ethanol

Rising global demand for oil:

http://www.interaksyon.com/business/54806/rising-global-demand-tight-ethanol-supply-driving-up-fuel-prices—-doe

The rise in fuel prices are also attributed to the ethanol blend requirement.

Ethanol prices rising:

http://www.futuresmag.com/2013/02/12/brazil-ethanol-topping-sugar-signals-millers-may-f?t=commodities

 

Tampakan

The locals actually like the mining operations to commence:

http://www.businessmirror.com.ph/index.php/news/top-news/9461-tribal-leaders-in-south-cotabato-press-for-tampakan-clearance

That’s nice. 🙂

 

PX

PX paid P1B fine:

http://www.bworldonline.com/content.php?section=TopStory&title=Philex-pays-P1-B-fine&id=66062

More on PX here:

https://fundamentalenthusiast.wordpress.com/2012/09/20/everything-about-philex/

NiHAO Minerals Resources Int’l, Inc. (PSE: NI)

Business Profile

NiHAO MINERAL RESOURCES INTERNATIONAL, INC. (the “Company”) was incorporated in the Philippines and registered with the Securities and Exchange Commission as Summit Minerals, Inc. on July 9, 1975. On June 28, 2007, the Company changed its corporate name to “NiHAO Mineral Resources International, Inc.”

The Company is a mining company engaged in exploring, developing, and operating nickel properties. The Company aims to create an integrated mining company using its expertise in nickel exploration, access to processing technology, and the prospectivity of its projects. The Company’s vision is to become a leading nickel mining and processing company in the Philippines.

The Company has the following subsidiaries and associates:

The Company’s Subsidiaries: Mina Tierra Gracia, Inc., Bountiful Geomines, Inc., Oregalore, Inc., and Masbate 13 Philippines, Inc. were all not yet in commercial operations.

The Company has the following mining claims through its subsidiaries:

Oriental Vision Mining Philippines, Inc.

On March 24, 2010, the Company purchased from various shareholders 30% of Oriental Vision Mining Philippines, Inc. (ORVI) for a total consideration of P60 million. The Company had extended a total amount of P150.5 million to ORVI which is payable either in cash or equity for working capital requirements. As of March 31, 2011 P55.5 million is still outstanding.

ORVI is currently operating Palhi Nickel Project located in Dinagat Island. By the end of the year, ORVI expects to secure a reserve report compliant with the Philippine Mineral Reporting Code (PMRC). ORVI Management is now in talks with several interested parties on the possibility of setting up a value added processing facility for nickel ore.

ORVI has successfully shipped 711,242 MT of nickel ore in 2011 to various Chinese clients recognizing a net income of 13.86 million for the year which is 131.91% higher than 2010 earnings of P5.97 million.

ORVI has the following mining claims:

GNA resources International Limited

A joint venture corporation established on December 12, 2011 by the Company, AGP Industrial Corporation, and Glencore International AG pursuant to the Heads of Agreement signed on September 27, 2011.

Glencore shall contribute its expertise in marketing of nickel ores in the world market as well as its network of various institutions internationally. On the other hand, NiHAO and AGP shall utilize their expertise in mining, contracting and developing of mines in the Philippines and their knowledge of relevant Philippine laws, rules and regulations and issues.

As of March 31, 2012, GNA resources was not yet in commercial operations.

On March 5, 2012, the Company entered into a General Contractor Agreement (“Agreement”) with GEOGEN Corporation (GEOGEN) over the latter’s mineral property located in Dinapigue, Isabela.

Under the Agreement, GEOGEN shall perform the following:
a.   Pay NiHao an amount equivalent to 90% of the invoice of the nickel ore sold by GEOGEN to third parties.
b.   Pay the excise taxes on the nickel ore extracted
c.   Pay fees arising from the occupation and operation of the mineral property
d.   Pay royalties to indigenous people

NiHao is obliged to perform the following:
a.   Mining services
b.   Hauling services
c.   Barging, wharfage, arrastre and stevedoring services for the shipside loading of the nickel ore extracted
d.   Road and causeway maintenance services
e.   Environmental maintenance services
f.   Pay AGP for management fees
g.   Reimburse GEOGEN for infrastructure development costs

The Agreement shall take effect upon execution and continue for a term of 10 years.

Comments:

Currently, NiHao’s earnings source is only from its 30% interest in ORVI. Other possible earnings source for the company in the next 2 years will probably be from its Agreement with GEOGEN. In the best case scenario that NiHao will purchase 100% of its only earning subsidiary, ORVI, NiHao will only recognize an EPS of .028.

ORVI plans to develop over 30,000 hectares of gold and copper mineral claims within the vicinity of Tampakan Copper-Gold project. The projects to be developed are not mentioned but Malapatan, Glan and Alabel projects are the nearest mineral properties to Tampakan.

Sources:
1.   http://www.nihaomining.com
2.   NiHao SEC Form 17-A 2011, http://www.pse.com.ph/resource/disclosures/2012/pdf/NI_17A_Dec2011.pdf
3.   NiHao SEC Form 17-Q March 31, 2011, http://www.pse.com.ph/resource/disclosures/2012/pdf/NI_17Q_May2012.pdf