Benguet reports lower earnings

MANILA, Philippines - Listed mining firm Benguet Corp. reported consolidated net earnings of P185.4 million in the first nine months of the year, down from P1.18 billion registered in the same period last year as heavy rainfall and frequent typhoons affected the third quarter operations of its Sta. Cruz Nickel Project.

In a filing, the company noted that its consolidated net earnings for the first nine months of 2011 was significantly high because of substantial gains from debt settlement and the Corp., Kingking Project transaction.

The company reported that for the third quarter alone, consolidated net earnings stood at P0.57 million, down from net earnings of P595.9 million for the same period of 2011.

Consolidated operating revenues for the third quarter fell to P240.81 million from P283.52 million in the same period last year. Consolidated operating revenues for the nine-month period, on the other hand, rose to P934.79 million from P657.52 for the same period last year.

During the nine-month period, the company’s mining operations contributed P836.41 million in revenues mainly from the Sta.  Cruz Nickel Project (P449.56 million) and Acupan Gold Project (P386.85 million).

Operating expenses for the third quarter rose to P351 million from P240 million for the same quarter last year because of “higher cost of mine products sold and services.” Operating costs and expenses for the first nine months of the year also rose to P893 million from P553 million for the same period in 2011.

Benguet Corp. produces and markets gold, refractory chromite, nickel laterite ore, limestone and aggregates; and through its subsidiaries, provides eco-tourism, engineering and construction, reforestation, trucking and warehousing services, sells industrial equipment and supplies, and develops water resources and real estate projects.

The company reopened Benguet Gold Operations on a limited scale in 2003 through the Acupan Contract Mining Project (ACMP), developed Sta. Cruz Nickel Project in 2007, and continued to review and package its various mineral properties for future development or sale.  It sells its gold to the Bangko Sentral ng Pilipinas.

In 2010, the company resolved a long outstanding issue with the claim owner on the Kingking Project. The Company invested in the development of the Sta. Cruz Nickel, Balatoc Tailings and Surigao Coal projects, and the expansion of ACMP.

The company is engaged in healthcare services through its Benguet Laboratories; trucking and warehousing through its subsidiary, Arrow Freight Corporation; trading industrial equipment and supplies through Benguetrade Inc.; and real estate development and lime kiln operation through BMC Forestry Corp.