Benguet Corp upbeat on income this year

MANILA, Philippines - Benguet Corp. is optimistic it will sustain a positive net income performance this year, carrying over the P2.4-billion net income posted in 2010, after it successfully retired 80 percent of its secured debt and repurchased 17 percent of its unsecured old debt.

Following the annual stockholders’ meeting Thursday, Benguet said it has completed the necessary requirements to operate Benguet Corp. Nickel Mines Inc. (BNMI) and Balatoc Gold Resources Corp. (BGRC) as stand-alone business units.

BNMI’s authorized capital stock is now at P2 billion, of which P1.025 billion has been paid up.

Benguet said BNMI is finalizing a term supply contract for up to 1.8 million metric tons of nickel ore to complement the existing off-take arrangement with DM Consunji Inc.

BGRC recently signed a contract for detailed engineering requirements of the project and contracted the rehabilitation of the tailings ponds and reinforcement of the silt dam.

Benguet further reported that the ramped-up Acupan gold mining output and the continued ore shipments of BNMI provided the company with steady and recurring income base amid sustained high metal prices.

Revenues from gold had risen 135 percent year-on-year and will continue to grow as milling capacity increases to 300 metric tons per day no later than the fourth quarter of 2012, Benguet said.

Furthermore, Benguet said nickel delivered P281 million in revenues in 2010 compared to none in 2009.

The trend is expected to further improve in 2011, as the company expects sustained or even improved gold and nickel prices.

A mineral processing permit (MPP) has been issued to the company for its Balatoc tailings project, the country’s first commercial operation of gold recovery from mill tailings. 

BGRC, a wholly-owned subsidiary, will operate and manage the project.