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MANILA - Benguet Corp. on Thursday said that it has signed a $20-million pre-export financing facility agreement with Amsterdam Trade Bank N.V. and Maybank Philippines lnc.
In a disclosure to the Philippine Stock Exchange, Benguet said the amount will be used for working capital and capital expenditure requirements, with bulk of the money going to its Sta. Cruz nickel project in Zambales.
Benguet used to work with DMCI Mining Corp., but started working solo on its nickel project since the first quarter of this year.
Renato Claravall, chief financial officer of Benguet, earlier said they expect to generate more income in the second quarter, with nickel production driving growth.
In the first quarter, the company earned P26.5 million.
"We had just started doing it on our own in the first quarter so there will be a lag in terms of results," Claravall said, without citing a specific amount.
He said the real "test" is whether the company can post a profit in the fourth quarter.
The Sta. Cruz nickel project becomes productive from October to April, after the rainy season ends in September. Rains disrupt production as wet ore and rocky seas make production and shipping difficult.
The company also set its full-year nickel production target to 600,000 metric tons.
Claravall said the company is studying options for year-round nickel processing and shipping to get more value out of its products.
Earlier, Benguet said it may acquire property along the Surigao-Agusan coastline to process and ship nickel year-round.
“If it takes this option, the company would likely take on a loan to fund part of the venture. The ballpark cost for a nickel processing plant is about $200 million,” Claravall said.
Another option is to build a processing plant in Zambales. The Sta. Cruz nickel project sits on a 1,406.7-hectare property, of which 50 hectares can be used for processing.
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