Philex Mining Corporation is a Philippines listed gold-copper producer that has drifted lower despite recent strength in the market copper & gold prices. The company I understand has a JV with a major international mining company in Mindanao. The project is a large-scale, long life mine that will generate healthy earnings, which is already evident in the income statement - see Google Finance or my discussion on this stock.The attraction of this stock is that appears to be getting support at $9.00, and that it has a stake in a major gold-copper mining project, and thus a nice flow of inflation-adjusted earnings. We should be cautious however if this stock falls below $8.00, as the next support level is $6.00. I dont see any reason for this happening in the short term, though copper prices are close to a peak. It remains to be seen just how robust copper demand will remain. For this reason I prefer a pure gold producer. But I would look for support above $9.00.
Another alternative to Philex is its listed parent company Manila Mining (PSE.MA) - see Google Finance or my discussion of this stock.
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Andrew Sheldon www.sheldonthinks.com
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