Now debt-free, Benguet Corp. ready for expansion beyond mining

MANILA, Philippines — Romualdez family-led Benguet Corp. is optimistic about expanding the business beyond mining after settling its decades-long debt.

“Looking forward, after having fully settled its long outstanding debt, the management is poised to undertake diversification strategies and to continue to improve shareholders value,” the company said in a disclosure on Thursday.

Last December, Benguet unveiled its plan to include in its portfolio other business ventures such as agriculture, real estate, bulk water and renewable energy. After addressing its indebtedness, it said the company was now free of negative restrictions that had hampered its growth.

“Now with improved creditworthiness and clean balance sheet, [Benguet] can resume capital market activities and engage investors in undertaking new projects and expansion of existing operations that will create new revenue streams for the company and will hopefully lead to future dividend payouts,” it said.

Benguet is primarily engaged in mining and mineral exploration. It also has interest in various industries such as logistics.

Currently, the company operates a gold mine in Benguet, nickel mines in Zambales and a processing facility in Baguio City.

Beyond mining, it has diversified into other sectors such as health care and diagnostics, mining logistics, industrial equipment trading, port services, shipping services, real estate and lime kiln operation.

READ: Benguet Corp pushes expansion, diversification

Better year seen

Benguet is projecting earnings to surpass financial performance in 2024, with gold prices breaching the $3,000 per ounce level this year.

Its net income totaled P436 million in 2024, down by 21 percent, even as revenues dropped by 4 percent to P2.4 billion.

“The management stated that this is the effect of the debt settlement,” Benguet said.

The company said it had exhibited “strong operating results” despite a decline in nickel sales, as the 24-percent rise in gold prices offset the 16-percent decrease in nickel prices.

“The rationalization program initiated in Acupan [mining project] in 2024 is further instrumental for the positive performance of the gold operation. Appreciation of the US dollar against the peso likewise bolstered the performance of the company in 2024,” it added.

Total equity, meanwhile, climbed by 9 percent to P9.14 billion.