Philex Mining Corporation [PX]

 

Technical View 

Judging based on the charts, PX seems bottomed on October 19, 2018 at 3.19 a share based from an impulsive (yellow line) and corrective (blue line) Elliot wave as drawn in the chart at all time high of 28.95 on August 16, 2011. 

If a resistance of 3.75 is broken which is a lower low from an Elliot wave prior to a major uptrend, then 4.92 is the next target resistance, a 23.6% of Fibonacci retracement.  If it fails to resist then the next support of 2.43 is to be expected.    

Recent Fundamental

On October 24, 2018, Philex Mining Corporation (PX) disclosed that net income attributable to parent company drop by 49.65% to P569.89 million in the first nine months of 2018 (as compared to P1.132 billion in the first nine months of 2017) on higher excise taxes and continued foreign exchange volatility amid its anticipated low-grade metal output and production.   

The next day, PX signed and executed an agreement in relation to its subscription for 260 million common shares of PXP Energy Corporation (PXP) at P11.85 each or a total of P3.081 billion. The transaction price was a 20% discount to the 90-day volume weighted average price (VWAP) of Philex Mining’s shares for the period ending 22-Oct-2018, which is payable in two tranches.   

PX said, it will fund the subscription from a combination of proceeds from PXP’s repayment of PX’s advances, and cash.  PX will increase its shareholding in PXP from 19.76% to 25.91% after the issuance of the shares.   

A similar deal was signed and executed between PXP and Dennis A. U’s Dennison Holdings Corp.  The latter subscribed for 340 million common shares amounting to P4.03 billion equivalent to P11.85 per share, representing a 20% discount to the 90-day VWAP of PXP shares for the period ending 22-Oct-2018.     

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DISCLAIMER: I'm not a Certified Financial Planner. Published herein is my personal opinion and should not be construed as a recommendation, an offer, or solicitation for the subscription, purchase or sale of this security.