Benguet Corp. posts P580M profit in H1
Benguet Corp. said it had recovered from losses in the first half of 2011, given good nickel and gold output, strong metal prices and sound financial management in the company.
In a statement, Benguet said its consolidated net income hit P580 million in the first six months of the year.
This, it said, marked a reversal in its financial performance from the first half of last year, when it posted a net loss of P88 million.
“This is also the first time since 2001 that Benguet registered positive operating results for a fiscal semester,” the company said in the statement.
The company’s financial performance in the first half of 2011 was also boosted by the continuing discounted settlement of its obligations.
Operating revenue for the six-month period rose by 179 percent to P374 million from P134 million in the same period in 2010.
Mining operations contributed substantially to the increase, posting earnings of P331 million or 89 percent of operating revenue.
The Sta. Cruz Nickel Project accounted for P173 million, while the Acupan gold operation contributed P152 million.
The Acupan gold mine reported net earnings of P46 million in the first semester of 2011, up by 48 percent from P31 million in the same period last year.
This was attributed to increased production and rising gold prices. Acupan continues its expansion program to raise capacity to 150 tons per day this year and 300 tons by 2012.
BenguetCorp Nickel Mines Inc. (BNMI), a wholly owned subsidiary, earned P28 million from Sta. Cruz Nickel Project’s nickel ore shipments in the first half.
Balatoc Gold Resources Corp. (BGRC), another subsidiary and operator of the Balatoc Tailings Project (BTP), has signed contracts for detailed engineering, rehabilitation of the tailings ponds and reinforcement of the silt dam.
BTP will be the country’s first large-scale gold recovery project for mill tailings. Financial closing of the project is expected within 2011.
“The overall performance of Benguet Corp. in the first half of the year fulfills management targets for 2011,” said company president and CEO Benjamin Philip G. Romualdez. “We will continue to build strong foundation for generating recurring income, while taking advantage of favorable metal prices.”
