Benguet posts P637 M income in 2012

MANILA, Philippines - The country’s oldest miner, Benguet Corp., is banking on its business diversification strategy to stem its falling earnings.

In a statement issued over the weekend, the company reported a consolidated net income of P637 million in 2012 from total revenues of P1.82 billion. Benguet posted a net income of P1.385 billion in 2011.

The company said the ramped up Acupan gold project and the increased ore shipments of Benguet Corp. Nickel Mines, Inc. (BNMI) provided the company with a recurring income base amid continued favorable metal prices.

“With the demand for metals in the world market remaining strong, the company expects the trend to further improve in 2013, premised on the projected increase in production capacity and stable market prices of gold and nickel,” it said.

Consolidated net earnings include non-recurring gains of P440 million, compared to P1.208 billion in 2011, while income generated from operations amounted to P253 million.

Revenues from gold had risen by 35 percent and will continue to grow as milling capacity increases to 300 metric tons per day by the second quarter of 2013, the company also said.

Furthermore, Benguet said that nickel delivered P1.110 billion in revenues in 2012 or an increase of 209 percent from P533 million in 2011.

The company expects the trend to further improve in 2013, premised on the projected increase in production capacity and stable market prices of gold and nickel, with the demand for metals in the world market remaining strong.

“Benguet is moving forward in the development of its pioneering gold tailings reprocessing project which is expected to be in commercial operation by first quarter of 2015, and in the expansion of its gold and nickel operations,” said the company.

“Under its diversification strategy, new non-mining business units will provide additional income streams. It remains optimistic that the coming year will show robust net income performance, which will ultimately benefit all stakeholders,” it also said.

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