Consunji stocks bloodbath continues amid mine woes
Semirara Mining and Power Corp. (SMPC) has assured its investors that business operations remain steady under its coal contract, which is valid until mid-2027, even as it gears up for a planned bidding.
Shares of Semirara dived by another 13.6 percent on Wednesday, while parent firm DMCI Holdings lost 7.61 percent.
Semirara has given up almost P45.3 billion in market capitalization since Monday, according to Peter Garnace, equity research analyst at Unicapital Securities Inc.
The Consunji-led firm told the local bourse on Wednesday that it’s business as usual for SMPC, with its operations uninterrupted under its existing coal operating contract (COC).
In particular, mining, shipments and power generation of the group “are not affected.”
It also logged “no immediate impact” on its financial position after the pronouncement of the Department of Energy (DOE) about auctioning off the Semirara coal contract within the year.
The DOE’s decision came as the Department of Justice had rejected Semirara’s push for a 13-year extension.
Semirara, however, reiterated that it has yet to receive a formal response to its plea for an extension.
“The company intends to fulfill the remainder of its current COC while preparing the appropriate mine plan and documentation should the DOE proceed with a formal bidding process, subject to the issuance of the relevant notices and guidelines,” it said.
“Management continues to implement prudent capital management measures to preserve financial flexibility,” the company added.
Semirara, the country’s largest coal producer, is set to complete its 50-year contract period on July 14, 2027.
The company is confident of winning the planned auction, as it touted its “decades of operating experience, technical expertise and established infrastructure on Semirara Island.”
These factors, it noted, “position us strongly” in the bidding.
Meanwhile, tycoon Manuel V. Pangilinan, who leads power titan Manila Electric Co., showed a desire to secure the Semirara coal contract.
Pangilinan said the group’s power generation arm, Meralco PowerGen Corp., may operate a power facility beside a coal mine.
