Benguet posts P1.2B in profit

Benguet Corp. posted a consolidated net income of P1.176 billion in the nine months ending Sept. 30, 2011, marking a turnaround from a net loss of P58.3 million a year ago.

The nine-month income translates to earnings of P7.18 per share.

The strong performance during the period was attributed to increased gold and nickel production, higher metal prices and gains from the continuing settlement of the company’s debt, as well as from the accelerated payment of the Kingking transaction.

Operating revenue for the nine-month period rose by 139 percent to P657.5 million from P274.9 million a year ago. Mining operations contributed P597 million, or 91 percent of operating revenue. The Sta. Cruz Nickel Project accounted for P339.6 million, while the Acupan gold operation contributed P251.4 million.

The Acupan gold mine reported net earnings of P72.7 million, or 28 percent higher than the P56.7 million a year ago. This was primarily due to higher gold production of 3,257 ounces compared with 2,169 ounces last year, and the increase in gold prices which averaged $1,546 per ounce against $1,186 per ounce in 2010.

Acupan is pursuing its expansion program to bring production to 200 tons per day within the year and 300 tons per day by 2012.

Benguetcorp Nickel Mines Inc., a wholly owned subsidiary, generated net earnings of P83 million from nickel ore shipments from its Sta. Cruz Nickel Project, as against nil in the same period in 2010.