Benguet Corp. to wipe out deficit
Publicly listed Benguet Corp. disclosed Thursday that it expects to end 2011 in the black.
In a statement, the company said this is because it can “totally wipe out its retained earnings deficit of P2.16 billion” since the Securities and Exchange Commission (SEC) approved on Dec. 5, 2011, its request to implement a quasi-reorganization and equity restructuring.
Benguet Corp. said that, under the SEC’s approved plan, the equity restructuring involves the offsetting of the company’s additional paid-in capital against its deficit.
“Quasi-reorganization entails the zeroing out of the deficit balance by charging against it a portion of the appraisal increment account,” Benguet Corp. said.
As Benguet Corp. expects to end 2011 with over P1 billion in net income, the company said it will close the year with a healthy retained earnings position.
The company hopes to sustain profitability through its enhanced gold and nickel operations.
Benguet Corp. president and CEO Benjamin Philip G. Romualdez said that the company will focus in 2012 on the development of its gold tailings reprocessing project.
The company is also keen on the further expansion of the Acupan mine, as gold is seen to hover above $1,500 per ounce over the near term.
Furthermore, Benguet is currently developing the infrastructure and support facilities required for its expanded nickel operations.
Benguet Corp. said that with bright prospects looming in its horizon, the company has been receiving financing offers for its various projects and has regained access to the credit markets.
