Benguet Corp. returns to profitability, earns P42 million in second quarter

BENGUET CORP. posted a net income of P41.98 million in the second quarter, a turnaround from its losses a year ago, as the mining company recorded increased shipments and higher revenues.

In the same three-month period last year, the company incurred a net loss of P7 million.

In a stock exchange disclosure on Wednesday, it said revenues in the second quarter this year rose 23.1% to P293.13 million against P238.08 million a year ago while costs and operating expenses fell 6.2% to P245.09 million.

For the first half, Benguet Corp.’s net income reached P98.68 million, reversing its net loss of P67.56 million a year ago, while revenues went up 65.2% to P701.60 million.

Its wholly owned subsidiary Benguetcorp Nickel Mines, Inc. (BNMI) exported five boatloads of nickel ore during the first semester, with an aggregate volume of 265,255 tons and at an average price of $25.71 per ton.

Further, the company’s Acupan gold project posted revenues of P308.7 million for the semester, after its contract mining project sold 3,720.46 ounces of gold with an average price of $1,637.31 per ounce.

On Wednesday, shares in Benguet Corp. “A” rose 1.38% or P0.03 to close at P2.20 apiece while Benguet Corp. “B” was unchanged at P2.24 per share.

UNITED PARAGON
Meanwhile, United Paragon Mining Corp. widened its net loss to P16.86 million in the second quarter compared with P11.94 million in the same period last year.

In a separate disclosure, the company said its net loss in the first half expanded by 21.5% to P32.46 million against a net loss of P26.72 million previously due to accrued interest expense on outstanding loans.

The total liabilities of United Paragon for the six-month period amounted to P1.20 billion.

“Due to the suspension of mining and milling operations and limited sources of funds, the company failed to meet payments within the stated terms to majority of its suppliers, contractors and creditors,” the disclosure said.

“However, the company has been continuously paying the accounts that relate to its current working capital requirement, and the old accounts due to its suppliers, contractors and creditors remain unchanged,” it added.

Shares in United Paragon were unchanged at P0.0055 each. — Revin Mikhael D. Ochave