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ACCORD CAPITAL EQUITIES CORPORATION

GF EC-058B East Tower, PSE Center, Exchange Road, Ortigas Center, Pasig City, 1605 (+632)687-5071 (trunk) MINING

MARKET NOTES
TD 123_June 27, 2011_MON

ATLAS CONSOLIDATED MINING & DEVELOPMENT CORPORATION [pse: AT] Disc. 4749 s. 2011 Capital Raising Exercise The Company will acquire 100% ownership of Carmen Copper amount (in US$ ISSUANCE details million) Corporation (CCC) through the purchase of CASOP Atlas 316,242,331 AT shares @ Corporation and CASOP Atlas BV's 45.54% interest for a total Equity 142.20 php19.56, private placement consideration of US$368M. The funds for the acquisition will 111,196,319 AT shares to be raised through a combination of equity and debt issuance. Equity 50.00 Alakor Corporation @ The debt component, US$197.8M will be in the form of php19.56 5YR Convertible Notes, 7.0% convertible notes, with maturities of five-years (US$75M) and 75.00 pa to Banco de Oro Unibank, one year (US$122.8M.) The 5-year Notes will be converted Debt Inc only in the event of a default and carries a 7.0% interest per 1YR Convertible Note to annum, with equal monthly amortizations on the principal Debt Banco de Oro Unibank, Inc 122.80 (273,098,159 AT shares) over a period of four years. CCC will provide the guarantee for the said issue. The equity part includes the issuance of 111,196,319 AT shares to Alakor Corporation for US$50M (php19.56 per share @ US$1:php43.50). The balance of US$142.2M will be issued via a private placement with and of a yet unidentified investor. FINANCIAL AND OPERATING RESULTS: The Company reversed KEY PERFORMANCE INDICATORS losses over the last two full years of php430M and php2,772M, Q1 2011 FY 2010 FY 2009 FY 2008 FY 2007 respectively, as it posted net profits of php1,337M through the first Current Ratio 0.796 0.660 0.270 0.570 2.835 quarter of the current year. The Q1 2011 bottom-line, in fact, Debt-to-Equity 1.530 2.060 4.850 0.680 2.053 surpasses the combined net incomes from the years 2007 and 2008. Return on Equity 18.84% 3.50% 10.05% Heavy investments in the last two years, plus the continuing nonoperation of the Berong Nickel Mines, dragged 2009-2010 results. The Toledo mine in Cebu, operated by CCC, resumed operations in the second half of 2008, after it was closed due to massive flooding. The strong reversal is expected to continue particularly with Berong coming on stream. The Company projects nickel ore output to reach 100,000 wmt monthly with this development. This should invite optimism on the Company's forward operating and financial growth, which compounded over the last three years (2008 to 2010) elicits an opposite view. Growth across its Key Performance Indicators show current assets narrowing at a pace of -6.53%, while current ratio grows at over 50% in the period considered. Equity grows at a faster 26.08% pace versus net debt's almost 22%. We thus see net-debt-to-equity ratio falling under 1.0, indicating decreased leverage. COMMON VALUATION MEASURES. Applying the common market determinants of value, namely PE and Price-to-Book, AT's current price of php20.00 per share, remains a bargain relative to the average bands over the last three years. Price as a multiple of current earnings ranged between 8.4x and 39.5x, while P/Bk is between 1.85x and 5.3x. As of last week, the relevant numbers are 4.25x and 3.2x, respectively. Ceteris paribus, excluding even projections of the impact of the acquisition of full ownership of CCC, a minimum price target of between php37.00 and php40.00 is reasonable. INVESTMENT RISKS. Two major risks face the investor, however. First is the movement of gold and copper prices in the world market and second, foreign exchange. The company has no control over the pricing of its produce, depending entirely on the quotations at the London Metals Exchange. On the other hand, most of its output is shipped to China and Korea, making the receipts susceptible to fluctuations and translations of forex rates. A stronger peso results in lower revenue in terms of the domestic currency. Copper continues to be the primary revenue driver of AT, through CCC, accounting for over 90% of the totals.

, DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED. ACCORD CAPITAL MARKET NOTES Page 1 of 2

AT's stock price surged nearly 20% in the last three-sessions as the market anticipated and discounted the above disclosure. The increase is validated by an almost ten-fold spike in daily volume turnover to an average of 18.5 million shares in the last three days versus the under 2.0 million share average in the ten prior sessions. This brings the stock to technically oversold levels, although the upside momentum is still evident and may push it higher. The risks to this, however, rises accordingly. We are thus constrained to put a BUY on price weakness, particularly around the php18.20-18.70 range. Major support lies at the php16.70 line with initial resistance at the 2007 high of php21.25. A breach of this mark may invite opportunities for a further rise to the php22.50-24.00 band. . Note than even as our general stance is to BUY on WEAKNESS defined as a price pullback to the php18.20-18.70 range on weak volume, there are short-term opportunities presented by a breakout from the php21.25 resistance for a 5% to 10% pop. Our long-term price target remains at the php37.00-40.00 area.

, DISCLAIMER: THE MATERIAL CONTAINED IN THIS PUBLICATION IS FOR INFORMATION PURPOSES ONLY. IT IS NOT TO BE REPRODUCED OR COPIED OR MADE AVAILABLE TO OTHERS. UNDER NO CIRCUMSTANCES IS IT TO BE CONSIDERED AS AN OFFER TO SELL OR A SOLICITATION TO BUY ANY SECURITY. WHILE THE INFORMATION HEREIN IS FROM SOURCES WE BELIEVE RELIABLE, WE DO NOT REPRESENT THAT IT IS ACCURATE OR COMPLETE AND IT SHOULD NOT BE RELIED UPON AS SUCH. IN ADDITION, WE SHALL NOT BE RESPONSIBLE FOR AMENDING, CORRECTING OR UPDATING ANY INFORMATION OR OPINIONS CONTAINED HEREIN. SOME OF THE VIEWS EXPRESSED IN THIS REPORT ARE NOT NECESSARILY OPINIONS OF ACCORD CAPITAL EQUITIES CORPORATION ON THE CREDIT-WORTHINESS OR INVESTMENT PROFILE OF THE COMPANY OR THE INDUSTRIES MENTIONED. ACCORD CAPITAL MARKET NOTES Page 2 of 2

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