MANILA, Philippines - Benguet Corp. said yesterday it is eyeing a net income of over P1 billion this year and a healthy retained earnings position following its quasi-reorganization.
The quasi-reorganization, approved by the Securities and Exchange Commission last Dec. 5, would allow Benguet to wipe out its retained earnings deficit of P2.16 billion.
The equity restructuring involves the offsetting of the company’s additional paid-in capital against the deficit while the quasi-reorganization entails the zeroing out of the deficit balance by charging against it a portion of the appraisal increment account.
Benguet hopes to sustain positive operating results through its enhanced gold and nickel operations.
Benjamin Philip G. Romualdez, president and chief executive officer of Benguet, said the company will focus on the development of its gold tailings reprocessing project and the further expansion of the Acupan mine as gold is seen to hover above $1,500 per ounce in the near term.
Benguet is currently developing the infrastructure and support facilities required for its expanded nickel operations after it has paid most of its debts from the sale of its rights to the Kingking copper-gold project in Compostela Valley.
The company said it has received offers from various parties to finance its projects.
In the nine months ending September 2011, Benguet posted a net income of P1.76 billion, a reversal of the P58.3 million loss incurred in the same period a year ago. The turnaround was attributed to increased gold and nickel production, higher metal prices and gain from the continuing settlement of the company’s debt.