Benguet posts turnaround

MANILA, Philippines - Listed miner Benguet Corp. posted a net income of P10 million in the first half of the year, a reversal of the P31.3 million loss incurred in 2016.

The company posted a financial turnaround despite lower revenues.

In a disclosure to the local bourse, Benguet said revenue fell 34 percent to P763.2 million due a decline in shipment volume of nickel ore coupled with lower price.

Nickel ore prices declined to $21.50 per metric ton from $24.82 per MT.

The company shipped an aggregate volume of 326,710 metric tons (MT) of nickel ore, down 75 percent year on year.

Total shipments decreased to six boatloads from 15.

Benguet said the decline in nickel revenue was also due to the company’s suspension of mining operations as ordered by former environment chief Gina Lopez.

The company was able to secure government permits for hauling and shipping of its nickel stockpiles from the mine site to prevent environmental risk.

On the other hand, gold produced during the quarter improved to 5,314.14 ounces from  4,256.14 ounces, resulting in higher revenue of P329.4 million.

This was coupled with the improved average realized gold price to $1,242 per ounce from $1,217 per ounce the previous year.

Benguet expects its cashflow to improve banking on better gold production and steady global market prices.

Aside from producing and marketing gold, nickel laterite ore, limestone, the company also provides logistics, port and shipping services, healthcare services, sells industrial equipment and supplies, and develops water resources and real estate projects.