Bluebird Merchant Ventures' shares fall as Philippine government audits mines

Shares in Philippine mining company Bluebird Merchant Ventures plummeted on Friday as it said the government had recently ordered an audit of active mines.

Shares in the company fell 24.27% to 2.84p at 1305 BST.

Bluebird said that it “cannot be certain of the reason for this movement” in share price, but added that the government recently ordered an audit of operating mines in the Philippines to ensure that the “highest environmental standards” are being applied. There had been reports that several nickel mines have been suspended.

It expects the government to complete the audit of all operating mines within the next three to four weeks.

The mining company said that its Batangas gold project is not an operating mine and is not expected to be part of the current audit.

Bluebird said the Batangas gold project is undergoing a permitting process in order to enter construction phase, following the completion of exploration. It also said that they do not know at this stage whether the audit will be extended to cover all projects.

Bluebird's copper concentrate trading business recently announced it had received payment from its first shipment from a Philippine smelter. The company said it sold it to a local smelter in order to pursue a strategy to add value within the country.

The company maintained that its focus is cash flow through its trading business. They also said their assay laboratory at the concentrating plant was close to completion. The laboratory would cut down time between shipping concentrate to its smelter and receiving payment

In a statement Bluebird said: “The directors, at this time, believe that the current audit and general review of mining projects that is taking place will not affect its trading business.”