The recent sell-off and consequent steep slide of Lepanto Mining shares last week have solicited a lot of inquiries from my trade partners on what had happened to the favored mining stock.

In the absence of official information from concerned parties, I can only provide the following comments based on news from Mankayan, Benguet and interviews with executives in the mining industry.

* There was a new report that protestors had stopped Lepanto’s equipment from deploying to its site in Mankayan, Benguet after the group obtained an injunction from the National Commission on Indigenous Peoples. The group claims the area as “ancestral domain” and should thus not be developed for mining.  LC replied that the property in question was a patented claim and that the matter has been settled. LC further stated that drilling in the area has been set and will begin as scheduled. Despite this statement, the protestors continued to block the entry of the equipment to the mine site.

* It  now appears that the indigenous tribes, who are not even party to the land settlement, have fanned  an anti-mining and nationalistic sentiment, using the “ancestral domain” as basis for their actions.

* Lepanto had been drilling for 18 months without any objection  from its tribal neighbors, and it was only at the last stage of the drilling that the “ancestral domain” issue was raised.

* Mankayan, Benguet has always been a mining area since the early 1900s, and its local economy has prospered due to mining operations.

* LC has done a due diligence of its mining area before obtaining all its legal permits and consent from the local government and affected communities and starting to develop the mine site. 

* “Ancestral domain” is a political issue, and with the help of the local government and its community, it can be resolved harmoniously.

Last Friday, LC/LCB  (stocks for foreigners) bounced back, an indication that market sentiment is shifting back to Lepanto’s side. To  my Lepanto fans, let’s hope that the uphill climb  continues until the conclusion of the Lepanto-Gold Fields joint venture on March 20.

Stock scuttle buts

* San Miguel Corp. is seriously courting Philippine Airlines to join the food, beverage, utility, and infrastructure conglomerate.

* Metro-Pacific Investment Corp.  is very much interested in acquiring GMA-7.

* SM is bent on acquiring Ortigas’s Greenhills property. The decision to accept the offer now rests with the Ortigas clan.

* The Philippine Stock Exchange’s  expected robust earnings may give its shareholders reasonable cash and stock dividends.

Economic indicator

Last month, foreign trade data indicated that the economy was not growing.  January trade figures show a stationary pattern.  If this trend continues this month, expect the real first-quarter figures to be less than the forecasts made by government economists during the second semester of last year. 

The Philippine Gold Diggers Club will meet at the Elks Club, Corintian Plaza Building, Paseo de Roxas, Makati on February 22 from 6 to 9 p. m.  All members and their guests are invited to attend.

If you have questions about my column in particular or the stock market in general, please feel free to contact me by email:  This e-mail address is being protected from spambots. You need JavaScript enabled to view it. or log on to our website: www.philippinegolddiggers.com.

Till next week. 

In the meantime, keep your mind on the money and your eyes on the market.