A friend asked me this afternoon what’s going on with the stock price of Lepanto Consolidated Mining Company (LC/LCB). To my surprise, the stock plunged and closed in red; LC was -5.66%, while LCB, -8.70%! A tweet from my follower @lastikman88 informed me that “Goldfields Scheduled Start of Production for FSE move to 2022.”
True enough, after doing a quick research, I’ve found this Integrated Annual Review 2012 report from Goldfields’ website. http://goldfields.co.za/reports/2012/ir.pdf
If you’d scroll down to page 116, 6.3.3 Far Southeast, Philippines. The scheduled start of production is indeed will commence on 2022. Here’s a screenshot of the page.
The biggest seller for today’s trade, 1 April 2013 for LCB was Philippine Equity Partner, who dumped 13.98M shares at P1.08 on average.
Below is the daily chart of LC, technically, it already broke it’s support line since it pierced below the kumo and already below the tenkan-sen and kijun-sen lines. There’s a critical line at 0.85, if this doesn’t hold, then you can forget this stock for a long while.
With gold prices now hovering at $1,600/oz from a high of 1,884/oz, I haven’t seen any signs of recovery just yet. In my opinion, eventhough Philippines has many gold mines, with lots of explorations going on, we are still very much affected with the falling gold price in the international markets. Obviously, I’m bearish with mining stocks right now…
I’d appreciate if you can give your comments below.
Gold Price Chart from Kitco.com