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Coming along

In the first two conferences of the ongoing season of the Philippine Basketball Association the NLEX Road Warriors had it rough, failing to advance to the playoffs and unable to win more than four games each time.

The Road Warriors, however, are coming along in the currently running Governors’ Cup and actually making a strong case as a team to contend with in the season-ending PBA tournament.

As of this writing, NLEX is sporting a 4-1 record which could have easily been 5-0 if not for a narrow 98-94 loss to the San Miguel Beermen in Dubai last week.

The record it has right now tied its total wins in the Philippine Cup (4-7) and surpassed what it had in the Commissioners’ Cup (3-8).

No doubt about it, what is doing it for the Road Warriors this time around is that it is now a “fully functioning” team able to put up a sustained fight.

In the previous two conferences they did compete and left everything on the floor but for one reason or another simply could not keep it up for much of the time and go over the hump.

Having coach Yeng Guiao and erstwhile missing player Kiefer Ravena back has certainly done wonders for the team.

With Coach Yeng around full time after doing double duty with Gilas Pilipinas previously, the Road Warriors are moving with better direction.

Not that the NLEX deputies did a horrible job while Coach Yeng was away, but with the head coach back in harness and steering the team, it obviously has a firmer grip of what it has in its arsenal and what it wants to get from each and everyone in the roster — enhanced by that incendiary Guiao style of coaching.

And it is hard to argue with the result so far.

Ravena, out for some 18 months because of the suspension slapped on him by FIBA for testing positive for a prohibited substance found during the FIBA World Cup Qualifiers which was blamed on a pre-workout drink he took, has been a boon to NLEX in his return, further shoring up its backcourt.

To date, Ravena has been all-around for the Road Warriors in the Governors’ Cup with numbers of 18.6 points, 9.4 assists, 7.2 rebounds and 1.4 steals per contest. Player of the conference-worthy? You bet!

His steady stellar play has worked well with those of backcourt mates Philip Paniamogan (11.6 ppg), Kenneth Ighalo (9.6 ppg), Jericho Cruz (8.6 ppg) and Larry Fonacier (6.2 ppg).

Complementing well the play of their backcourt are the frontliners led by import Olu Ashaolu.

The returning NLEX reinforcement has fitted well in the system of Coach Yeng.

While not as flashy and explosive as the other imports in tow, Ashaolu is a workhorse who provides what the team needs and in some cases at the most opportune of times at that.

He is averaging 22.6 points, 12.2 rebounds and three assists per game but his impact definitely goes beyond those numbers. Having him come early to train with the team has also gone a long way.

JR Quiñahan (11.4 ppg) and Poy Erram (11 ppg and 2 bpg) have also been delivering accordingly for the team with upside still there, particularly the latter who is making his way back from an arm injury suffered in their tournament opener against the Phoenix Pulse Fuel Masters.

Collectively the Road Warriors, too, are determined to shed that underachieving ways they have had of late, something that should serve them well not only in the ongoing tournament but beyond as well.

At the current rate things are going, NLEX should be there in the mix come the playoffs with the potential to go deeper.

A sea-change alright in the Governors’ Cup for the Road Warriors; something I am sure their supporters are basking in.

 

Michael Angelo S. Murillo has been a columnist since 2003. He is a BusinessWorld reporter covering the Sports beat.

msmurillo@bworldonline.com

No Redskins savior

Nope, the Redskins didn’t fire coach Jay Gruden due to an inability to speed up the growth process of rookie quarterback Dwayne Haskins. For all the obvious expectations that come with being drafted 15th overall, he continues to be a raw commodity that figures to be spoiled if rushed to produce. And forget about the bullishness of the front office in regard to his potential; Daniel Snyder may be the reason he was plucked from Ohio State after just 14 starts, but even the franchise owner knows the value of patience. No doubt, it’s also preached because of the way he performed well below par in relief last week.

To argue that Haskins stunk up MetLife Stadium would be an understatement. He came in with the Redskins two touchdowns behind midway through the second quarter, and then proceeded to craft what looked to be a good series with two good passes and a nifty scramble under pressure. Unfortunately, he couldn’t finish the job; considering that he had three opportunities to do so from the one-yard line, winding up with a field goal was disappointing at best. And, once the adrenaline wore off, his inexperience showed; everything went downhill from then on.

Haskins would finish the game with a poor nine-of-17 line, including three interceptions, for 107 yards all told. He was also sacked twice en route to posting an abhorrent 26.1 quarterback rating in the 24-3 loss to the Giants. He simply lacks the wherewithal to perform under the klieg lights, and if there’s anything Gruden was guilty of in regard to his progress, it was, in fact, rushing him to the field. The good news is that the Redskins are prepared to go the long route with him, their evident win-now predilections notwithstanding. Interim coach Bill Callahan has even gone on record to note that he could be inactive on game days.

Meanwhile, Haskins is doing all he must do to justify the Redskins’ faith in him. He goes through separate workouts before and after team meetings, not to mention breaks down footage of relevant action with coaches and by himself. As to when his efforts will finally lead to a start is anybody’s guess. “He still has a ways to go,” Callahan acknowledged. “His development is very, very important. There is a very good plan in place for that to happen.” That said, he’s only part of the solution. The rest is up to the very front office that drafted him, and that has seen more than its fair share of futility. He’s no savior, even at his best.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and Human Resources management, corporate communications, and business development.

An Ode to Banaue

Look through the lens of the late master photographer, John K. Chua

They say a picture is worth a thousand words – a captured moment can evoke feelings and a photo of a well-loved place can bring back treasured memories. From September 29 to December 1, find a chance to see the beauty of Banaue in a different light, through the magic eye of renowned photographer, John K. Chua in “Falling in Love with Banaue and Beyond,” a photo exhibition at the FoGuang Yuan Manila Art Gallery.

From breathtaking photos of the Banaue Rice Terraces to moving portraits of the locals, the exhibit features moving pictures of family and community living, rituals, as well as ethnic games taken by the photographer from 1970 to 2015.

The late John K. Chua was one of most respected photographers in the country known for his technical expertise and taking on challenging photo shoots. For more than four decades, he has worked with different clients, shot a variety of subjects, and cemented his place as a top-notch architectural, commercial, and advertising photographer. An adopted son of Banaue, Chua devoted his life to documenting Ifugao culture and teaching photography to kids battling cancer as well as to children with autism.

The award-winning advertising photographer was also an advocate for people with disabilities. He organized Photography with a Difference, among many other initiatives, and taught photography to the visually impaired through the Photography Beyond Sight program.

Falling in Love with Banaue and Beyond is organized by the FoGuang Shan Mabuhay Temple in partnership with the FoGuang Yuan Manila Art Gallery. The exhibit will open on September 29, Sunday (by invitation only) at 2:00PM and will run until December 1, 2019. The FoGuang Yuan Manila Art Gallery is located at 656 P. Ocampo Street, Malate Manila and is open from Tuesday to Sunday, 10:00AM to 5:00PM.

FX buffer strengthens to record high as of Sept.

GROSS international reserves (GIR) — which shield the country from liquidity shocks — strengthened to a record high by end-September, as the national government’s bigger foreign currency deposits offset NG payments for servicing foreign exchange obligations, the Bangko Sentral ng Pilipinas (BSP) said on Monday, citing preliminary data.

GIR totaled some $86.163 billion as of September, edging up by 0.15% from end-August’s $86.031 billion and 15% bigger than the year-ago $74.939 billion.

It was the biggest amount on record.

COMPONENTS
The gold reserves component of the GIR steadied at $8.016 billion from end-August but was bigger than the year-ago $7.577 billion, while gains from the BSP’s investments abroad — which accounted for bulk of reserves — slipped to $73.44 billion from end-August’s $73.522 billion but were still bigger than the $59.851 billion recorded the past year.

Foreign currency deposits grew to $2.978 billion from end-August’s $2.761 billion but were down from the year-ago $5.842 billion.

Reserves with the International Monetary Fund (IMF) slipped to $561.4 million from end-August’s $563.3 million but were still bigger than the $483.4 million recorded a year ago.

Special drawing rights — or the amount which the Philippines can tap from the IMF’s reserve currency basket — steadied at $1.168 billion from end-August but slipped from the year-ago $1.186 billion.

The end-September GIR was equivalent to 7.5 months worth of imports of goods and payment of services and primary income, the BSP said in a press release accompanying the data.

It was also equivalent to 5.4 times external debt falling due within 12 months and 3.9 times such short-term debt plus principal payments on medium- and long-term loans of the public and private sectors falling due within 12 months.

Net international reserves, which refer to the difference between the BSP’s GIR and total short-term liabilities, increased by $130 million to $86.15 billion as of end-September from end-August’s $86.02 billion. — L. W. T. Noble

Off to strong start, Axelum yields to mart’s weakness

By Arra B. Francia
Senior Reporter

SHARES in coconut products manufacturer Axelum Resources Corp. fell by 6.2% on the company’s first day of trading, failing to hold on to early gains as it reflected the general weakness in the local bourse.

Axelum closed 31 centavos lower at P4.69 on Monday, despite opening 5.8% or 29 centavos higher than its P5 offer price at P5.29. It went down to as low as P4.19 apiece intraday, against its P5 offer price during the initial public offering (IPO).

“I don’t think we can expect more considering how turbulent the times are,” Axelum Chairman and Chief Executive Officer Romeo I. Chan said in a press briefing after the company’s listing ceremony at the PSE headquarters in Bonifacio Global City.

This compares to the 0.27% drop of the Philippine Stock Exchange (PSE) index to close at 7,683.22 yesterday, amid jitters due to signs of slowing global growth. The industrial sectoral index — under which Axelum shares are now listed — was one of the three of six counters that ended in the red, dropping 16.37 points or 0.15% to 10,460.89.

‘NOT TO WORRY’
“But not to worry because Axelum is a long-term play, the fundamentals are very sound. We’ve been doing very well in the past 33 years and we expect it to continue doing well,” Mr. Chan said.

Axelum listed its shares on the main board of the PSE under the ticker “AXLM,” after raising P4 billion from the sale of 700 million primary common shares and 100 million shares held by Singaporean private equity firm CP Compass Singapore Pte. Ltd. Its market capitalization stood at P20 billion after listing.

“The PSE certainly welcomes the addition of Axelum to our roster of listed firms and takes particular pride in having a company that provides customized products to globally known food brands,” said PSE Chairman Jose T. Pardo said in his speech during the listing ceremony.

First Metro Investment Corp., which acted as the transaction’s sole issue manager, bookrunner, and joint lead underwriter, said the offer was “fully subscribed.”

“The company raised the amount that it wanted. So what the company needs for all its plans, it’s fully funded,” First Metro Executive Vice-President and Investment Banking Head Daniel D. Camacho said in the same briefing.

Sought for comment, Unicapital Securities, Inc. Technical Analyst Cristopher Adrian T. San Pedro said the company held its debut at a bad time. “The IPO was a bad timing in a volatile market environment which is on a downtrend bias. I believe most retail investors sold as their trail stops were hit after the shares of Axelum went below P5 per share IPO price,” Mr. San Pedro said in a mobile phone message.

Philstocks Financial, Inc. Research Associate Japhet Louis O. Tantiangco said enticing investors will remain a challenge for other companies that will conduct their IPOs this year. “Company fundamentals will play a crucial role. This will be their main tool in stimulating investors’ appetite amid the general market pessimism,” Mr. Tantiangco said in a separate text message.

Firms that have yet to secure approval for their respective IPOs include Metro Pacific Hospital Holdings, Inc. (P83.3 billion), Cal-Comp Technology (Philippines) Inc. (P10.7 billion) and Fruitas Holdings, Inc. (P1.2 billion).

Asked on future plans, Axelum President Henry J. Raperoga said the company recently signed a contract worth $1.3-1.5 million for the supply of 170 metric tons of coconut milk powder for an international skin care company.

Axelum will also set up a coconut water concentrate plant worth P150-200 million.

“That is one way of turning into revenue the coconut water we’re not actively processing right now,” Mr. Raperoga explained.

Bulk of the fresh capital raised from the IPO will be used to expand the company’s domestic and international distribution networks, build new manufacturing facilities for new products and improve existing manufacturing facilities.

The company will also acquire firms to expand production, with Mr. Chan saying that it is in advanced stages of talks for deals in the Philippines, and in early stages of negotiations for a firm in Vietnam.

Axelum’s main production facility is located in Medina, Misamis Oriental, with two distribution facilities in the United States and Australia. It is one of the major suppliers of coconut water brand Vita Coco, and also serves international brands such as The Hershey Co., Nestlé, Unilever, Ferrero, General Mills, Campbell’s, Quaker, and ConAgra Foods, among others.

Revival of nuclear energy program faces uphill battle

By Charmaine A. Tadalan
Reporter

IT WILL TAKE YEARS to revive a nuclear energy development program due to inadequate laws, skills and infrastructure, even as the country scrounges for more energy sources to support its fast-growing economy, a senator and an expert said on Monday.

Senator Sherwin T. Gatchalian, chairman of the Senate’s Energy committee, said Philippine laws are inadequate for the development of this form of energy, with the head of the Philippine Nuclear Research Institute (PNRI) citing the need first for a comprehensive nuclear energy law.

“We have to be very cautious in moving forward because kulang pa tayo sa mga batas at kulang pa tayo sa mga framework (We still lack laws and a framework),” Mr. Gatchalian told reporters in a briefing, Monday.

He advised the government to take extra precaution to ensure safe construction and operation of nuclear plants.

He noted that there are no laws that will regulate nuclear energy development, including proper disposal of nuclear waste.

President Rodrigo R. Duterte in his visit to Russia last week closed an agreement to explore the possibility of nuclear energy development. Mr. Duterte said in his Sunday arrival briefing that he plans to consult the Cabinet on the agreement.

Sought for comment, PNRI Director Carlo A. Arcilla said much remains to be done to lay the groundwork for revival of the country’s nuclear energy program.

“I agree with Senator Gatchalian: we haven’t yet approved the comprehensive nuclear law which will guarantee an independent regulator,” Mr. Arcilla told BusinessWorld in a telephone interview on Monday.

A measure providing for a nuclear regulatory framework nearly hurdled the 17th Congress, after it secured third-reading approval in the House of Representatives, but remained pending second-reading approval in the Senate.

Mr. Arcilla also said lawmakers will have to review Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, to incorporate provisions covering the development of nuclear energy.

Mr. Arcilla said Science and Technology Secretary Fortunato T. Dela Peña, who joined Mr. Duterte in Russia, has not yet given any instruction as regards the nuclear energy deal with Russia.

Regulations are just one of the factors that need to be considered in exploring nuclear energy development, Mr. Arcilla said.

He noted that the United Nations’ International Atomic Energy Agency (IAEA) will turn over its 19-point report on the Philippines’ readiness next month. “The INIR mission is the Integrated Nuclear Infrastructure Review basically, [whereby] the IAEA reviews each country’s readiness to go into nuclear power program, according to its 19 milestones approach,” he said. “That study… was completed and will be turned over to the Philippines in November.”

Factors considered include nuclear safety, regulatory framework, funding and financing, human resource development, legal framework, safeguards and radioactive waste management.

Mr. Arcilla cited the need to explore nuclear energy since the Malampaya gas reserve — which accounts for about 40% of supply in Luzon and a fifth nationwide — could be depleted by 2024. “There are very important reasons that the Philippines should consider nuclear energy. The main overriding one is our Malampaya gas reserves will run out in five years.”

Swearing by swine innovation

The Entrepreneur Of The Year Philippines 2019 has concluded its search for the country’s most successful and inspiring entrepreneurs. Entrepreneur Of The Year Philippines is a program of the SGV Foundation, Inc. with the participation of co-presenters Department of Trade and Industry, the Philippine Business for Social Progress, and the Philippine Stock Exchange. In the next few weeks, BusinessWorld will feature each of the finalists for the Entrepreneur Of The Year Philippines 2019.

Alvin S. Hing
Chairman and CEO

Paul T. Holaysan
President and COO

Excelsior Farms, Inc. (EFI)

PORK is integral to Filipino cuisine. This is evident in the popular selection of native pork dishes in the country.

Its high demand has turned pork into a P260-billion industry, making it the second-largest contributor to the country’s total agricultural income.

Currently, there are over 12 million hogs in the Philippine inventory, the bulk of which is still produced by traditional backyard breeders. Commercialized hog-raising might account for 35% of the country’s overall supply, but two Cebuano farmers are determined to revolutionize the local swine industry by leveraging innovative farming techniques.

Entrepreneurs Alvin S. Hing and Paul T. Holaysan were brought together by their shared vision of improving food security in the country through advanced, sustainable hog farming practices that would enhance livestock quality for breeding and consumption. Together, they founded Excelsior Farms, Inc. (EFI) in 2014, with Mr. Hing as EFI’s chairman and chief executive officer (CEO) and Mr. Holaysan as its president and chief operating officer (COO).

The Philippines consumes at least 1.5 billion kilograms (kg) of pork a year, with each Filipino consuming an annual average of 15 kg. In 2019, the country imported around 300 metric tons of pork to meet the needs of consumers. The company recognizes this gap as an opportunity for expansion, which oy can seize through modernization and by encouraging consumers to source their pork locally.

Currently EFI supplies pork to the biggest food distributors in Cebu, where the average annual consumption rate per person is 18 kg. Though the company faces high demand that constantly encourages it to increase sales, it takes pride in its consistently high-quality meat.

EFI’s farm is a modern facility located in Barangay Sacsac, Pinamungajan, Cebu. In line with its vision to leverage modern farming practices and technologies to help upgrade the local pig farming industry, it looked to scientific methods to achieve its objectives. These methods include applying various mechanisms to produce superior breeders and liquid genes, enhance the genetic stock of local swine, use a tunnel-ventilated system that keeps the pigs at a comfortable temperature, and many others.

The company sources its equipment from an international company that specializes in agriculture technology. This is to make sure that its facilities are at par with the global standards of swine farming.

At the same time, Mr. Hing and Mr. Holaysan aim to uplift the standards of pig farming by providing farmers with animals that are genetically superior through EFI’s partnership with a supplier. Throughout its five-year operation, the farm maintains at least 50 quality boars that are updated by their supplier every quarter and supplies breeders nationwide with packaged fluid for artificial insemination.

Mr. Hing explains, “There used to be a 10-year genetic gap between the pigs we’re producing locally, versus the ones in modern countries like the US. We wanted to improve the production of our farmers, so through our method, we brought down the genetic gap to two years. This resulted in pigs with improved genetics, faster growth, better equality and they can also adapt to harsher environments.”

Mr. Hing’s and Mr. Holaysan’s constant pursuit of innovation has also led them to integrate digital systems into their farming operations. They use software that enables them to constantly monitor the needs of the pigs, such as food, medicines and vitamins. At the same time, a program helps their farm manager oversee some 30 farm buildings through a single application. To keep their operations internationally competitive, EFI uses MetaFarms, a US-based software that allows it to benchmark against US and Canadian farms.

Technology also allows the company to minimize the risk of diseases, which is a major concern for any livestock operation. The company implements strict biosecurity measures to ensure the health status in the hogs. One procedure is a 48-hour downtime in a medium security area before entering the farm premises.

Despite their company’s efforts to modernize pig farming, they admit that slow adoption of automation and the challenges in Internet infrastructure in the country have been hindrances.

In reality, production has been overtaken by local demand, resulting in the need for heavy importation.

Aside from improving the quality of hogs, they also wish to give everyone access to quality education about the industry. Their advocacy is embodied in their business practices that led to the creation of the company’s aptly named core values: SWINE. It stands for Spirituality, Working together, Integrity, Nurture and Excellence. This further inspired them to establish the SWINEnovation learning center in 2018, through the collaborative efforts of their business associates. The learning center aims to contribute to the stabilization of the country’s pork supply by imparting the best swine industry practices to farmers, schools and industry stakeholders.

The learning center offers modules certified by the Technical Education and Skills Development Authority on farm management and production from breeding to harvest, facility design, genetic technology, feeds and feeding, animal health, biosecurity and operation maintenance. It also aims to interest younger generation in farming by dispelling the belief that it is a “dirty” occupation. By transforming the perception of modern farming, they hope to get more people involved in the swine business.

The two innovative modern farmers keep themselves updated on new hog-raising procedures by going to other countries to observe new methods and technology. To further improve operations, the company has also started sending its staff abroad to learn these techniques firsthand.

Mr. Hing adds, “Our advocacy is to improve the lives of our people. Aside from the numbers and the profits, our main objective is to uplift our Excelsior family. We want to educate our employees, and we want them to be able to send their kids to school. We believe that if their children can graduate from university, this will benefit the country’s economy.”

EFI’s commitment to education encompasses their outreach programs. They provide assistance to their local community by conducting livelihood trainings, and by donating school supplies to children.

Both men acknowledge that they were fairly conservative when they started EFI but agree that if they could do it all again, they would scale the business bigger.

“Our errors helped us learn.” Mr. Hing recalls. “We started Excelsior and planned it small, then it grew this big.”

To which Mr. Holaysan replies, “We cannot undo the past, we’ll just have to plan for the future.”

The official airline of the Entrepreneur of the Year Philippines 2019 is Philippine Airlines. Media sponsors are BusinessWorld and the ABS-CBN News Channel. Banquet sponsors are Global Ferronickel Holdings, Inc., Jollibee, and Uratex.

The winners of the Entrepreneur Of The Year Philippines 2019 will be announced on Oct. 15 in an awards banquet at the Makati Shangri-La Hotel. The Entrepreneur Of The Year Philippines will represent the country in the World Entrepreneur Of The Year 2020 in Monte Carlo, Monaco in June 2020. The Entrepreneur Of The Year program is produced globally by Ernst & Young.

City of Firsts: Araneta introduces new look, brand for QC project

By Mark Louis F. Ferrolino
Special Features Writers

ARANETA Center, Inc. (ACI) is breathing new life into its Quezon City flagship project, relaunching it as Araneta City.

“We wanted to say and describe what Araneta Center is now. For all intents and purposes, it is a city. We have residences, offices, entertainment, dining, and shopping. We have excellent transport connectivity, we’re in the middle most of everything. We’re more apt to be called as a city now,” ACI Chairman of the Management Committee Rowell Recinto told BusinessWorld in an interview.

Araneta City recently introduced a new brand, logo and tag line.

Mr. Recinto said that the recent rebranding is important so the people will easily identify what Araneta City is, given the presence of other competing developments in the area.

“We have to send out a very clear message,” he added.

Araneta City’s tag line is now “The City of Firsts,” referring to its introduction of first-of-its-kind developments and concepts in the country.

For instance, Ali Mall was the country’s first major shopping mall; the Araneta Bus Station was the first integrated bus terminal serving several bus companies; and Ticketnet, which is the first online ticketing system. Other “firsts” include the Oasis — the first indoor, open-air, air-conditioned floating garden restaurant; and the Platinum Cinema — the first Lazy-Boy movie theater.

“Before, there are only shopping, dining and entertainment. Now, Araneta is envisioned with shopping, dining, entertainment, residences, offices, hospitality and services. And we are not done, far from it,” Mr. Recinto said in a speech during the Sept. 24 event.

The transformation within the 35-hectare Cubao property continues with the ongoing developments in the Cyberpark complex, the Manhattan Garden City, the expansion of Gateway Mall, and the near completion of the first Ibis Styles Hotel in the country.

Mr. Recinto also announced that the entire Araneta City will be covered by Wi-Fi services both by Globe Telecom, Inc. and Smart Communications, Inc.

When asked further about ACI’s plans for Araneta City in the coming years, Mr. Recinto said, “Look around, if you see an old building or a single-storey building, that’s going down.”

He said ACI plans to build more, and to make this feasible, they have to demolish such properties.

By 2030, ACI, aims to have a total floor area of three million square meters in place within the Araneta City, said Mr. Recinto. “That means we’re going to build a lot more because we’re going to knock down buildings,” he added, noting that future projects will focus more on vertical developments.

“Capability wise, [or in terms of] financial capability, we can do it. Obviously, we will consider any partnership if the partner has something to bring to the table, let’s say expertise, experience. But financially, we can manage,” Mr. Recinto said.

Meanwhile, Araneta City’s first-ever mobile application was also launched during the brand kickoff. The app serves as a mobile concierge to let customers enjoy an array of features of Araneta City.

The mobile app lists all of Araneta City’s merchants, shops, clinics, restaurants, offices, as well as its locations, descriptions and contact information. Users can also use the app to buy and reserve tickets for the events, concerts and movies showing in Araneta City, and even for bus trips.

Nickel Asia to boost production at Cagdianao mine next year

By Vincent Mariel P. Galang, Reporter

CAGDIANAO — Nickel Asia Corp. (NAC) is increasing production at its Cagdianao mine site by 10% next year, as it anticipates an improvement in nickel prices as Indonesia begins implementing a nickel export ban.

“For 2020, the budget (production) for Cagdianao is 3 million wet metric tons (WMT). We’ll add about 300,000 (WMT) next year,” NAC Vice-President for Operations Aloysius C. Diaz told BusinessWorld in an interview last month.

Next year’s production would be higher than the 2.354 million WMT target for this year.

The Cagdianao mine site is located in Barangay Valencia in the municipality of Cagdianao, Dinagat Islands in the Caraga Region. It has a total Mineral Production Sharing Agreement (MPSA) for 697 hectares, a third of which is mineable.

The mine can produce up to 5 million WMT of nickel, which is used for the production of stainless steel.

“The improved prices due to the ban to be imposed on Indonesian nickel ore export by the Indonesian government, and of course we have to increase productivity of our CMC (Cagdiano Mining Corp.) team,” Mr. Diaz said.

Indonesia has announced that it will start its nickel ore export ban on Jan. 1, 2020.

Meanwhile, Mr. Diaz said this year, the company expects to have additional seven shipments, which have an average of 53,500 WMT per vessel, or a total of 374,500 WMT, bringing expected production this year at 2.728 WMT.

“The Cagdianao mine will be ahead by seven shipments this year, compared to 44 shipments scheduled for this year. Cagdianao will make about 51 shipments this year,” he said.

The bulk of the shipments with 1.55% ore grade, or medium-grade ore, are being exported to China, while those with 1.7% ore grade are sent to Japan.

“We have to improve our bottomline because the opportunity presented itself. We had improved productivity and the price of our product also improved,” Mr. Diaz noted.

For the first six months of 2019, NAC reported a 48% decrease in its attributable net income due to foreign exchange losses. The listed miner said earnings dropped to P713.75 million during the six-month period from P1.39 billion it booked in the same period last year. Revenues went up 1.14% to P7.46 billion during the January to June period.

It incurred P81-million net loss from its equity investments in Coral Bay Nickel Corp. and Taganito HPAL Nickel Corp. (THPAL) versus net earnings of P526 million last year due to lower nickel and cobalt prices.

The miner sold 9.08 million WMT of nickel ore during the January to June period, 2% up from last year’s 8.89 million WMT. Limonite ore deliveries also increased 10% to 4.41 million WMT, which offset the decline in ore export volumes by 4% to 4.67 million WMT.

New towers to rise in Arcovia City

MEGAWORLD Corp. is developing three residential towers in its 12.3-hectare Arcovia City township in Pasig City.

Arcovia Palazzo will offer 1,472 units across three residential towers — the 40-storey Altea Tower, 45-storey Benissa Tower, and the 49-storey Cantabria Tower.

Designed by UK-based world-renowned architectural firm Broadway Malyan, Arcovia Palazzo’s units range from studio with or without balcony (up to 32 square meters); one-bedroom with or without balcony (up to 46.5 sq.m.); two-bedroom with balcony (up to 77 sq.m.); and three-bedroom with balcony (up to 193.5 sq.m.).

Select bi-level units with onebedroom (up to 107 sq.m.) or two-bedroom (up to 139 sq.m.) are also available.

Amenities at Arcovia Palazzo will include an infinity pool with pool deck, pavilion, Jacuzzi, game room, fitness center, daycare center, outdoor seating lounge, children’s playground and function rooms.

The towers’ ground level will feature retail spaces with a view of the township’s landmark Arco de Emperador.

Megaworld is targeting around P12 billion in sales from the project, which is scheduled to be completed by 2025.

Arcovia Palazzo is Megaworld’s second residential development in Arcovia City. Last year, it launched the 37-storey 18 Avenue de Triomphe which offers 576 units and is now nearly sold out. Construction of the tower has started, and is expected to be completed by 2023.

Located along C-5 corridor, Arcovia City is now home to Landers Superstore and the Arcovia Parade commercial area, as well as the Arco de Emperador.

Maja Salvador bags best actress prize in Busan’s inaugural TV award

ACTRESS Maja Salvador has won the Best Actress Award for her work in the TV series Wildflower at the inaugural Asian Contents Award organized by the Asian Film Market in Busan, South Korea. She shares her award with Chinese actress Yao Chen for her work in All is Well.

“It was an honor to be trusted with this role by our network, ABS-CBN, and the whole team of Wildflower,” Ms. Salvador said in her acceptance speech in a video posted by ABS-CBN.

In the ABS-CBN revenge drama which aired from 2017 to 2018, Ms. Salvador plays Lily Cruz and Ivy Aguas, the latter identity she uses to exact revenge on those who did her family wrong.

During her acceptance speech, Ms. Salvador also thanked actor Tirso Cruz III (who played the main antagonist in the drama) who “upped my game and encouraged me when I thought I had nothing more to give.”

The same series was also nominated in the Best Asian TV Drama category but lost to Thailand’s Hormones and Singapore’s Faculty.

The Asia Contents Awards recognize outstanding TV series from across Asia and is organized by the Asian Film Market, a film market held concurrent with the Busan International Film Festival.

SIX PINOY FILMS IN CONTENTION
The film festival, which runs until Oct. 12 in various venues in Busan, is the stage for six Filipino films which are either having their world premieres or international premieres at the festival.

The films that form the Philippine delegation are: Mindanao by Brillante Mendoza which is having its world premiere at the festival, and Ang Hupa (The Halt) by Lav Diaz. Both films are part of the newly established Icons section which features films “made by iconic filmmakers from around the world… in order to eagerly focus on the both the directors and their works,” according to the film festival website.

Also included in the Philippine lineup is John Denver Trending by Arden Rod Cortez which won Best Picture among a host of other awards in this year’s Cinemalaya Independent Film Festival. The film is competing in the New Currents section against 14 Asian films.

Lingua Franca by Isabel Sandoval and Verdict by Raymund Ribay Gutierrez are included in the Window on Asian Cinema category while Basurero by Eileen Cabiling competes in the Wide Angle (Asian Short Film Competition). Verdict won the Best Jury Prize in the Orizzonti section of this year’s Venice International Film Festival. It is also the film selected by the Film Development Council of the Philippines to represent the country in the Best International Feature Film category of the 92nd Academy Awards to be held in February 2020. — Zsarlene B. Chua

LBC withdraws application to conduct follow-on offering

LBC Express Holdings, Inc. has withdrawn its application to conduct a follow-on offering with the Securities and Exchange Commission (SEC), citing how the financial statements required for the issuance have already lapsed.

In a disclosure to the stock exchange Monday, the Araneta-led logistics firm said it has filed the withdrawal for its application to offer a total of 69.101 million common shares, which was submitted in April 2018. The offering included 10 million new common shares and 59.10 million secondary shares.

LBC Express said financial information included in a registration statement should be as of a date not earlier than 180 days from the date of filing. Its application, however, still contains its financial performance for the full year ended 2016, 2017, and 2018, as well as the period ended March 2019.

“Considering that these financial statements have become stale, there is now a need to further update the same,” the company said.

“The company anticipates that it will take some time to have its financial statements audited or reviewed, and for this reason has decided to withdraw its Offer, without prejudice to a possible re-filing by the company of such application at a later date.”

LBC Express has been trying to pursue a follow-on offering for about four years now, since it entered the stock market by taking over dormant holding firm Federal Resources Investment Group, Inc. in 2015.

Its application was previously rejected by the Philippine Stock Exchange because of the pending cases filed by the Philippine Depository Insurance Corp. (PDIC) against its owners.

The PDIC case filed before the Department of Justice in 2016 concerns the officials of the now defunct LBC Development Bank, Inc. for estafa, and violation of the PDIC Charter or Republic Act No. 3591 by conducting business in an “unsafe and unsound manner” that caused the bank to lose at least P1.8 billion.

LBC Express argued then that the PDIC case should not affect its eligibility to conduct the share sale.

Meanwhile, the company has committed to open 70 to 100 branches every year, funded through internally generated sources as well as the supposed proceeds of the follow-on offering.

LBC Express’ net income attributable to the parent fell by 53% to P561.88 million in the first half of 2019, amid a 34% jump in gross revenues to P7.85 billion.

Shares in LBC Express were last traded at P13.54 each at the stock exchange on Friday, Oct. 4. — Arra B. Francia

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