FINANCIAL STATEMENT

ANALYSIS
PHILEX MINING CORPORATION
AND
ABRA MINING AND INDUSTRIAL
CORPORATION

MINING INDUSTRY BACKGROUND

The Philippines is considered the fifth richest

country in the world in terms of mineral resources.

has the largest nickel reserves
most of the 35 operating metallic mines in the
country as of Oct. 2012 based on data from the
Mines and Geosciences Bureau are into nickel
mining.

THE COMPANIES
PHILEX MINING
Incorporated in 1955
Listed in 1956 in PSE
Philex Mining is on production phase
AMIC
AMIC is still on exploration phase.
Incorporated in 1964
Listed since 1969

VERTICAL ANALYSIS
non currents assets composed a large slice in their

asset section the same with the equity section of the

balance sheet.
long business cycle
higher cost of capitalization
higher equity is needed from the stockholders
general and administrative expenses where
exploration phase has all its cost, contributed to the
net loss of the company

VERTICAL ANALYSIS

VERTICAL ANALYSIS

HORIZONTAL ANALYSIS
both company higher growth on expenses was

experienced for the year 2011

minimal change of percentage for AMIC while a
substantial increase of change was noted for Philex
Mining.

HORIZONTAL ANALYSIS

HORIZONTAL ANALYSIS

RATIO ANALYSIS

RATIO ANALYSIS
Philex Mining Corporation is more profitable than AMIC and

Industrial Corp.
Reasons would explain that AMICs commercial operation is still not
open while Philex Minings is into production stage.
On the short term liquidity ratio Philex Mining is favorable during
the year 2011, however, succeeding year after would not be as
favorable before dropping their current ratio to .94
On the solvency ratio, Philex Mining still take the lead
Above ratio explains the company stability and performance except
for the market ratio
Price earnings ratio of the two company changes over the two period
in comparison. P/E increases in the year 2012,which means it was
not wise to invest in both companies.

CONCLUSION
Generally, mining companies maintain high long-term

assets and high capitalization. Conversely, both

exhibit low short-term liquidity but sustain a
minimum long-term debt.
After examination of the companies financial
performance, we concluded that investing in the
mining industry in general is risky due to the nature of
business wherein the business cycle is longer than
usual and the companies are vulnerable to
environmental factors that subject the company to
incur large costs.