Benguet gets P250 M capital infusion

MANILA, Philippines - Listed mining company Benguet Corp. has approved the P250 million capital infusion of RYM Business Management Corp. (RBMC) which will be used to augment the working capital of its existing mining operations.

The local bourse, in a circular issued late Friday, announced that a trading halt on shares of the country’s oldest mining firm would be implemented from nine am to 10 am on Aug. 27 to give the investing public time to digest the information.

During its regular board meeting on Aug. 23, Benguet’s board of directors approved the private placement of P250 million by RBMC in exchange for equivalent number of shares based on the average market price plus premium of P9 per share for class A and B shares.

Both classes of shares have a face value of P3 per share.

The first part of the placement entails the subscription by RBMC to 18 million common shares valued at P162 million.

Additional subscriptions will follow after Benguet has increased its authorized capital stock.

Benguet operates the Sta. Cruz Nickel Project in Sta. Cruz, Zambales and the Acupan Gold Project in Itogon, Benguet.

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.

In the second quarter of the year, Benguet reported modest net income of P332,000 against P158 million a year ago.

Net earnings for the first semester of the year fell to P36.6 million against P184.9 million in the same period last year.

The company attributed this to lower metal prices that prevailed during the first semester at $1,546.82 per ounce for gold and $34.51 per ton for nickel.

In the first semester in 2012, the average metal prices were $1,614.14 for gold and $38.04 for nickel.

Consolidated operating revenues for the second quarter of the year rose to P605.7 million from P474.5 million.

For the first semester, operating revenues rose to P1.26 billion from P694 million in 2012.

The company’s mining operations contributed 93 percent of the revenues. The Sta. Cruz Nickel Project accounted for P780 million while the Acupan Gold Project contributed P351 million.