Benguet Corp. reverses losses in 1H

Mining company Benguet Corp. is back in the black as it reversed losses in the year's first half. In a statement to the Philippine Stock Exchange on Monday, Benguet said its consolidated net income in the January to June period reached P580 million, a reversal from the net loss of P88 million in the same period last year. "The strong earnings performance during the first half of 2011 was the result of increased production output in nickel and gold operations, higher world metal prices, as well as, by the non-cash gain resulting from the continuing discounted settlement of the company's obligations," Benguet Corp. said. Operating revenues for the period more than doubled to P374 million from P134 million. Mining operations largely contributed to the higher operating revenues at P331 million or 89 percent of operating revenues. The Sta. Cruz Nickel Project accounted for P173 million, while the Acupan gold operation contributed P152 million. "The overall performance of Benguet Corp. in the first half of the year fulfills management targets for 2011," said Benjamin Philip Romualdez, Benguet Corp. president and chief executive officer. "We will continue to build strong foundations for generating recurring income, while taking advantage of favorable prices." -- CMA/OMG, GMA News