Benguet targets P1B income for ’12

Benguet Corp. expects to end this year with a net income of about P1 billion on the back of higher metal production.

“Certainly on the recurring income, whatever we have from last year, we are hoping that will increase this year and we are hoping we can get to the target mentioned,” said Benguet president and CEO Philip Romualdez during Benguet’s stockholders’ meeting.

Romualdez said that Benguet is working to increase this year its gold production capacity to 1,000 ounces per month from the current 500 ounces per month.

CFO Renato A. Claravall later told reporters that while there may not be much difference in income for 2011 and 2012, “real income” is expected to increase in comparison to extraordinary income as the company ramps up gold and nickel production.

Claravall said more nickel revenue is coming in the second quarter as investments in Benguet Corp. Nickel Mines Inc. pay off in terms of higher output.

He said that the company is also studying options for nickel processing to be able to extract more value from its minerals.

A Chinese company has apparently approached the company, offering to set up a nickel processing plant in Zambales, but Claravall said that there is also an option to acquire property in the Surigao-Agusan coastline to be able to produce nickel year-round.

At present, nickel production and shipments from Zambales get limited by stormy weather around June to October.

Last year, Benguet posted a consolidated net income of P1.385 billion as the ramped-up Acupan gold mining operation and the continued ore shipments of BNMI provided the company with a recurring income base amid sustained high metal prices.

At the time of the disclosure, the company said it had successfully retired 83 percent of its debt obligations and will continue to move toward full settlement in 2012.