Benguet profit declines in Q1

MANILA, Philippines - Listed miner Benguet Corp. saw its consolidated net income decline 94.29 percent in the first quarter from a year ago amid lower gains from debt settlement and higher costs of production.

The miner said in its financial report to the Philippine Stock Exchange that its consolidated net profits reached P26.5 million in the first three months of the year, lower than the P458.1 million in the same period last year.

“The decline is partly due to the lower non-recurring income from gain on debt settlement of P27 million booked this quarter as against the P420 million for the same period in 2011,” Benguet said.

The firm said its operating costs and expenses rose 39 percent to P196 million this year from the P141 million in the same period a year ago.

It said the increase in operating costs and expenses was due to the higher cost of mineproducts sold for the period.

Benguet’s operating revenues went up 20 percent to P219.5 million this year from the P182.9 million in the comparable period a year ago.

The increase, it said, is mainly due to higher gold output from the Acupan mine which reached 1,780 ounces this quarter from 1,063 ounces in the same period last year.

The Acupan Gold Project generated net earnings of P37 million in the first quarter, up from the P23.8 million in the same period last year.

Benguetcorp Nickel Mines, Inc.(BNMI), a wholly-owned subsidiary of Benguet meanwhile, reported net earnings of P3.5 million from nickel ore shipments from the Sta. Cruz Nickel project in Zambales, lower than the P19 million a year ago.

Benguet attributed the lower net earnings of BNMI to the work being undertaken to operate other areas of the Sta. Cruz Nickel project.

The Irisan Lime Project, meanwhile, generated net earnings of P2.2 million, down from the P3 million last year.

Benguet said net earnings of the Irisan Lime Project declined due to higher costs of fuel and oil.

In the same report, Benguet said its Balatoc tailings project has already been issued the mineral processing permit and other government-related permits to operate.

The project will involve turning waste back to gold.

Benguet said it has already signed contracts for the development of infrastructure for the project.