Bright Kindle buys mining company for P5-B

Bright Kindle Resources [BKR suspended] [link] was suspended indefinitely by the PSE after it disclosed the acquisition of Strong Built (Mining) Development Corp. (SBMDC) for P5 billion. The suspension will remain in effect until BRK is able to provide comprehensive disclosure on the transaction. SBMDC is an iron ore (magnetite) mining company that has a mining tenement in Leyte. According to the Department of Environment and Natural Resources, SBMDC produced P88.3 million worth of chromite concentrate in FY21, and paid P5 million in taxes, fees, and royalties to produce that value. BKR is owned and controlled by Martin Romauldez, the current House Speaker and cousin of President Marcos.

MB bottom-line: BKR is a crony stock, but it’s not exactly clear to me yet how this move could leverage Mr. Romauldez’s contacts and influence in government. Of course, it’s a mining company and its ability to operate (and expand?) is closely controlled by the government, but I just don’t have any background knowledge on this particular company that makes the move “make sense”. It’s not a random buy, so there’s a reason somewhere. I look forward to reading the comprehensive disclosure!

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