Miner Benguet’s profitability hinges on SEC approval of asset revaluation

The profitability of Benguet Corp., the country’s oldest mining company, currently hinges on an asset revaluation that will have to be approved by the Securities and Exchange Commission. The revaluation involves offsetting in 2011 in Benguet’s books P2.4 billion in long-standing obligations. "Assuming that the SEC will allow the capital reorganization plus the estimated net income of P1.1 billion, we may end the year with a positive income," said Renato Claravall, Benguet senior vice president for finance. The bulk of the company's projected income will stem from debt retirement gains, and expectations of higher revenues from the Acupan mine and Sta. Cruz nickel operations, the company said. Should these projects come about, Benguet will likely end 2011 with P1.2 billion in retained earnings the bulk of which will come from P1.1 billion in net income. "It's very likely that stockholders will get news of dividends announcement next year (2012). We're really banking on the SEC to approve our request for asset revaluation," Claravall told reporters in a briefing Tuesday. Benguet has not declared dividends in 12 years, and "this will be a first in many years, and we're hoping to make our shareholders happy with this announcement soon." — VS, GMA News