MANILA, Philippines - Miner Benguet Corp. said its net earnings plunged to P2.5 million in the first nine months of the year from P320.4 million amid lower revenue and tough market conditions.
In the third quarter, Benguet reported a net income of P33.7 million, reversing the P79.8 million loss incurred in the same period a year ago.
Total revenue fell 52 percent to P1.3 billion due to lower price and the decline in nickel ore and gold produced.
The company shipped an aggregate volume of 778,485 metric tons (MT) of nickel ore from 1.3 million MT the previous year.
This is the same volume of nickel ore shipped during the first half as the company had no shipments for the third quarter following the suspension order of the Department of Environment and Natural Resources.
Total shipments decreased to 15 boatloads from 24, exacerbated by the decline in nickel ore prices from the average $34.50 per MT in 2015 to $21.95 per MT.
Gold produced for the semester plunged to 6,681.99 ounces from 10, 615.41 ounces last year due to lower tonnage milled. This is despite the improved average realized gold price to $1,336.55 per ounce from $1,124.67 per ounce.
Aside from producing and marketing gold, nickel laterite ore, limestone, Benguet also provides logistics, port and shipping services, healthcare services, sells industrial equipment and supplies, and develops water resources and real estate projects.