BENGUET Corp. posted a consolidated net income of P381.39 million in 2020, surging more than three times from the previous year, on the back of better nickel revenues and higher gold prices.
Its revenues reached P1.62 billion, a 102% increase from P802.07 million in the previous year. From the amount, nickel sales accounted for the biggest share at P818.34 million.
“Nickel sales, which accounted to 50% of gross revenues, grew by 1,165% to P818.34 million from P64.65 million in 2019,” the company said in a regulatory filing.
Benguet Corp. said its nickel subsidiary, Benguetcorp Nickel Mines, Inc. (BNMI), exported nine boatloads of 1.2% to 1.4% nickel ore aggregating 483,952 tons at an average price of $34.21 per ton – higher than the one boatload of 1.5% nickel ore aggregating 55,000 tons at $22.50 per ton recorded in 2019.
“Following resumption last October 2020 of mining operation of the nickel project in Zambales, BNMI was able to take full advantage of the upbeat market for low and mid grades at higher prices,” the company said.
Meanwhile, the company said its gold revenues for 2020 also rose 18.7% to P704.30 million compared to P593.30 million the year earlier on the back of better prices, while lime and other revenu es reached P97.09 million.
“The Acupan Gold Project (AGP) sold 8,080.71 ounces of gold at average price of $1,750.25 per ounce against 8,236.65 ounces of gold at an average price of $1,395.43 per ounce in 2019,” the company said.
“The gold output of the Acupan mine benefited from higher average gold price,” it added.
Benguet Corp.’s cost and operating expenses in 2020 rose 38% to P1.27 billion from the P923.78 million it had the previous year as a result of higher shipment tonnage of nickel ore this year.
Moving forward, the company said it does not predict any cash flow or liquidity issues in the next 12 months.
“BNMI resumed mining operations and continues to market saleable nickel ores inventory from old stockpile, Irisan Lime Project continues to maintain steady market for quicklime products, and AGP is expected to improve gold production,” the company said.
On Tuesday, shares of Benguet Corp. “A” was flat at P3 per share while Benguet Corp. “B” shares rose 1.70% or five centavos to end at P2.99 apiece. — Revin Mikhael D. Ochave