BIZ BUZZ: Before digging into Semirara…

Semirara Mining and Power Corp.’s shares have plunged about 65 percent since February. But bargain hunters may still need to keep their shovels down.

COL Financial chief investment strategist April Tan said the bidding for the Semirara coal operating contract leaves investors with risks that a cheaper share price cannot settle.

The stock has shed about P21.60 per share since the government rejected its contract extension request. That exceeds COL’s estimated P19.50-per-share value of its coal mining business.

Under the revised bidding rules, the highest financial bid would determine the winner among qualified participants.

Semirara argues that requiring it to surrender its mining assets to the government if it participates puts the incumbent at a disadvantage.

Even winning could mean paying more to keep operating.

“The potential return of the coal mining operation will not be the same as it was before,” Tan said.

Losing would strip away a business contributing around 55 percent of profits and 47 percent of net asset value. Its power plants would then need to buy coal from third parties, potentially squeezing margins.

Dividend hunters face uncertainty, too. Tan said Semirara had yet to declare cash dividends for 2026 as it prepares for the bidding.