A study on the effects of peso-dollar rate and change in world market prices of gold, silver and copper on market capitalization of mining companies for the year 2004-2006

• Main Authors: Chua, Jean Louis R., Tan, Nancy L., Tan, Wilson Jeffrey U., Tubianosa, Leonard R.
• Format: text
• Language: English
• Published: Animo Repository 2007
• Subjects: Mineral industries > Philippines; Mining corporations > Philippines; Foreign exchange rates > Philippines; Finance and Financial Management
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18302
• Institution: De La Salle University

It is bitter irony for the Philippine mining industry to suffer extensive setbacks considering it is the second most mineralized country in the world. The sector that could have been the main driver of economic growth remains in the doldrums for almost two decades. The industry's long wait for deliverance should have been over with the Philippine Mining Act of 1995. But an accident in the Marcopper Mining Corporation put pressure on the government to tighten environmental regulations. Thus, the constitutionality of the Act was put on hold by the Supreme Court. To make it worse for the mining sector, the softening in metal prices forced firms to shutdown mining operations. However, since 2003, gold, silver and copper, have all found new luster and their prices have headed higher. To make advantage of uptick in metal prices, the Philippine Mining Act of 1995 was finally reestablished in July 15, 2005 with the primary objective of encouraging foreign players to invest in the mining industry. This study reflects the effects of prices of gold, silver and copper, and peso-dollar rate on corporate size based on market capitalization of selected mining companies. Moreover, this study focuses on the impact of reestablishment of the Philippine Mining Act on market capitalization of mining firms. Such, was achieved through the use of statistical tools in order to analyze the effects and determine the significant difference in the firm's corporate size considering the period before and after the Act. Pearson product moment coefficient and F-test were primary tools used. The results where then validated, implying that there are enough evidence to provide adequate conclusions and recommendations.