Benguet profit soars 119% on lofty gold, nickel prices
Mining company Benguet Corp. saw its net income soar by over 119 percent in the first quarter, driven by sustained increases in metal prices and higher sales.
In its quarterly report, Benguet said its net income had more than doubled to P555 million in the three months ending March from P253.3 million in the same period a year ago.
Revenues amounted to P1.7 billion during the quarter, reflecting a 69 percent increase.
“The increase is attributed to the continued soaring price of gold and nickel and higher volume of gold and nickel ore sold during the quarter,” Benguet said.
The average gold price climbed by 70.4 percent to $4,885.57 per ounce, while nickel ore prices averaged $38.04 per ton, up 11.1 percent.
Benguet sold 2,121.22 ounces of gold, 49 percent higher than 1,423.95 ounces previously.
The company also shipped 469,245 tons of nickel ore to China, up from 379,770 tons in the previous year.
Costs and operating expenses surged by 42.3 percent to P1.02 billion as it incurred higher expenses in selling nickel ore and gold during the quarter.
The mining firm also paid higher taxes because of increased revenues from nickel ore and gold.
Since its establishment in 1903, Benguet said it has evolved from a gold miner into a full mineral resource company with a diverse portfolio that includes chromite, copper, lime and nickel.
Benguet currently operates a gold mine in Benguet, nickel mines in Zambales and a limestone processing facility in Baguio City. It continues to expand its presence in various mineral prospects through exploration across the Philippines, including mining properties in Nevada in the United States.
The company continues to develop other areas within its Benguet mine site, with expansion slated for completion this year.
Benguet is also exploring additional nickel assets to capitalize on the steady market demand for this base metal.
Meanwhile, the firm continues to fund the expansion of its Acupan mine in Benguet as well as the exploration and development of its Pantingan gold project in Bataan.
“The increase in the sale of gold and shipment of nickel will have a favorable impact on the company’s net sales and income,” it added.
