Benguet Corp. reported a 6.3% increase in second-quarter (Q2) net income to P393.77 million from P370.54 million a year earlier, as higher metal prices and stronger sales volumes lifted revenues.

Benguet Corp., incorporated in 1903, is one of the oldest mining companies in the Philippines and trades on the Philippine Stock Exchange under the symbol BEN. Its earnings are closely tied to global commodity prices, with gold and nickel ore accounting for the bulk of quarterly revenues.

Revenue growth

Revenue rose 23.9% to P1.39 billion from P1.12 billion in the same period last year, according to the company's quarterly report filed with the Securities and Exchange Commission (SEC). The company attributed the growth to higher gold prices, a recovery in nickel ore prices, and increased volumes of gold and nickel ore sold.

Through its Benguet Gold Operations (BGO), the company sold 2,088.73 ounces of gold during the quarter, up 22.9% from 1,699.03 ounces a year earlier. The average gold price rose 37.2% to $4,492.18 per ounce from $3,274.14 per ounce, a gain that tracks the broader run-up in global gold prices over the past year and amplified the benefit of the company's higher sales volumes.

Benguet Corp. also exported six boatloads of nickel ore through subsidiary Benguetcorp Resources Management Corp. (BRMC), with an aggregate volume of 293,884 tons valued at P783.1 million. The number of boatloads was unchanged from a year earlier, while aggregate volume declined from 329,400 tons. Shipment value still increased from P776.4 million as the average nickel ore price rose 6.8% to $40.20 per ton from $37.63 per ton. The Philippines is among the world's largest nickel ore exporters, and swings in the commodity's price flow directly into local producers' revenues.

Costs and pretax income

Costs and operating expenses climbed 42.3% to P909.2 million from P639 million due to higher costs of mine products sold, merchandise sold and services, selling and general expenses, and revenue taxes. Income before tax rose 14% to P549.5 million from P481.9 million. With cost growth outpacing revenue growth, the quarter's bottom-line gain was more modest than its top-line expansion.

First-half performance

For the first half, net income increased 52.1% to P948.8 million from P623.9 million a year earlier. First-half revenue rose 44.4% to P3.1 billion from P2.15 billion, while income before tax increased 52.6% to P1.24 billion from P814.3 million. The first-half growth pace outpaced the second quarter's, reflecting a stronger start to the year.

Segment results

BGO's gold production increased 27.9% to 2,009.54 ounces in the second quarter from 1,570.98 ounces a year earlier, driven by a higher volume of ore milled.

"BGO milled a combined 10,985.81 tons at average mill head of 6.84 grams per ton in the second quarter, higher compared to 6,922.96 tons with an average mill head of 8.67 grams per ton for the same quarter in 2025," the company said.

BGO posted P172.1 million in pretax income for the quarter, more than double the P78.1 million recorded a year earlier, as its revenue rose to P568.8 million from P312.2 million on higher gold sales volume and prices.

The Sta. Cruz Nickel Project (SCNP) posted second-quarter net income of P208 million, down 25.8% from P280.2 million a year earlier due to lower tonnage sold. SCNP revenue slipped to P771 million from P776.4 million as nickel ore volume declined to 293,884 tons from 329,400 tons. The decline came despite higher nickel ore prices, underscoring how shipment volumes drive the project's results.

Revenue from the Irisan Lime Project (ILP) jumped 55% to P32.4 million from P20.9 million, driven by higher lime sales volume.

Exploration updates

Benguet Corp. said drilling activities at its Pantingan Property Gold Prospect in Bataan remained suspended during the quarter.

For its Zamboanga Gold Prospect, the company said its initial two-year exploration period expired on Dec. 5, 2025. It submitted a renewal application and a revised exploration work program in October 2025, which the Mines and Geosciences Bureau central office approved on July 22, 2026.

The company is also awaiting the issuance of a new coal operating contract for its Surigao Coal Project, subject to compliance with Free and Prior Informed Consent requirements.

For its Asiga Copper and Gold Prospect in Agusan del Norte, Benguet Corp. said it is complying with documentary requirements for its exploration permit application.

Progress on these permits, together with any resumption of drilling at Pantingan, will shape the pipeline of projects beyond the company's operating mines.

Balance sheet

Cash and cash equivalents stood at P2.95 billion as of June 30, up 24.3% from P2.37 billion at the end of 2025. Total assets rose 8.6% to P12.77 billion from P11.75 billion, while total liabilities increased 10.6% to P1.78 billion from P1.61 billion, leaving liabilities at roughly 14% of total assets. — Marron Joshua F. Mendoza