The peso rate closed higher at P55.83 to the US dollar yesterday at the Philippine Dealing System of the Bankers Association of the Philippines from P55.875 the previous day. The weighted average rate appreciated to P55.844 from P55.876. Total volume amounted to $262.3 million.
Milk prices rise 5%
Prices of milk and instant coffee have posted a five percent increase due to increases in the world prices of skimmed milk and coffee beans, the Department of Trade and Industry said. According to the DTI Price Monitoring teams, a slight increase in the prices of coffee has been observed for the past three months although the price has started to stabilize in the last month. Café Puro 50g, in fact, went down from P26 in July to P25 in October. Aside from Alaska powdered filled milk 180g which increased from P38 to P39, retail prices of processed milk did not change in the last three months.
Aussie firm gets approvals
SYDNEY (XFN-Asia) — Climax Mining Ltd said it has gained regulatory approvals to develop its $100 million Dinkidi gold/copper project in central Luzon in the Philippines. It said the Philippine Department of Environment and Natural Resources (DENR) on Thursday issued an effective permit to operate. Climax chief executive Rob Thomson said the approvals will allow the company to complete debt financing and concentrate on off-take agreements, as well as start detailed project design. Thomson said Climax is rapidly advancing discussions with a number of key banking institutions and potential concentrate off-take financing groups in Australia and overseas. He said the groups selected have shown a keen interest in lending to the Dinkidi project and the reemergence of the Philippine mining industry in general. The approval comes after the Philippine Supreme Court ruled earlier this year that foreign companies could own up to 100 percent of mines, allowing legislation that had been on hold since 1995 to be put in place. Once developed Dinkidi is expected to initially produce 160,000 ounces of gold equivalent a year, rising to 200,000 ounces.
Moody’s sees PLDT rate upgrade
Moody’s Investors Service said it has placed the debt ratings of Philippine Long Distance Telephone Co (PLDT) on review for possible upgrade, in view of the carrier’s improving financial risk profile. At the same time, Moody’s assigned PLDT a local currency corporate family rating of "Ba2", and also placed it on review for possible upgrade. PLDT has a "Ba3" foreign currency senior unsecured rating. In a statement, the ratings agency said the review will focus on the sustainability of improvements in PLDT’s operating and financial profile, as well as prospective capital expenditure requirements, particularly any investment in third-generation technology. Moody’s said the review will also take into account "possible structural subordination given debt at subsidiary Smart Communications Inc", PLDT’s exposure to foreign exchange risks, and its investment strategy. Moody’s expects to complete its review by year-end. Moody’s also said PLDT’s plan to seek consent of bondholders to amend certain terms of senior bonds due 2007 and 2012 or the prospective tendering of the bonds will not adversely impact its credit profile. "PLDT is well advanced in its debt reduction program, which is leading to lower interest costs, increased cash flows, and reduced exposure to foreign exchange rate risk," Moody’s said. PLDT is targeting to reduce its debt by $600 million this year, and has already cut its obligations by $550 million so far, Moody’s noted, adding that the company has over $530 million in cash at present.
PMO lowers ISM bid price
The government’s Privatization and Management Office (PMO) has lowered the minimum bid price for a 4.88-hectare property in the financial district of Makati that it plans to sell through auction Nov. 17. PMO said Wednesday that the minimum bid price for the former site of the International School Manila has been set at P1.18 billion ($21 million), 38 percent lower than the minimum bid price of P1.9 billion when the government tried to sell the property in 2003. The International School property, which the government had been trying to sell in 2002, is being marketed as an information technology center. However, the city government of Makati has yet to change the area’s zoning to make the property available for commercial use. The area is now in a zone considered suitable only for institutions such as schools.
