Benguet turns around, clears P580 million

MANILA, Philippines - Benguet Corp. posted a consolidated net income of P580 million in the first six months this year, a reversal from the P88-million net loss in the same period last year.

In a statement, Benguet attributed the turnaround in its first half 2011 operating performance to increased production output in its nickel and gold operations, higher world metal prices, as well as the non-cash gain resulting from the continuing discounted settlement of it obligations.

Operating revenues for the six-month period increased 179 percent to P374 million from P134 million in the same period in 2010. Mining operations largely contributed to the rise, at P331 million or 89 percent of operating revenues.

The Sta. Cruz nickel project accounted for P173 million, while the Acupan gold operation contributed P152 million.

The Acupan gold mine reported net earnings of P46 million for the first semester of 2011, or 48 percent higher than the P31 million in the same period in 2010. Benguet attributed this to increased production and strong market price of gold.

Acupan continues its expansion programto bring production to 150 tons per day within the year and 300 tons per day by 2012.

BenguetCorp Nickel Mines Inc. (BNMI), a wholly-owned subsidiary, generated net earnings of P28 million from nickel ore shipments from its Sta. Cruz nickel project in the first six months, as against none in the same period in 2010.

BNMI is currently undertaking a feasibility study to develop a processing capability for value-added nickel products.

Balatoc Gold Resources Corp. (BGRC), another wholly-owned subsidiary and operator of the Balatoc tailings project (BTP), has signed contracts for detailed engineering, rehabilitation of the tailings ponds and reinforcement of the silt dam.

BTP will be the country’s first large-scale gold recovery project from mill tailings. Financial closing of the project is expected within 2011.

“The overall performance of Benguet Corp. in the first half of the year fulfills management targets for 2011,”company president and CEO Benjamin Philip G. Romualdez said. “We will continue to build strong foundations for generating recurring income, while taking advantage of favorable metal prices.”