Benguet announces second quarter results.

NEW YORK--(BUSINESS WIRE)--Aug. 25, 1995--Benguet Corp. (NYSE:BE) today announced that consolidated net earnings for the second quarter of 1995 amounted to P1,700,000 (US$65,000) or P0.015 (US$0.0006) per share, compared with net earnings of P1,400,000 (US$54,000) or P0.01 (US$0.0004) in the same quarter last year.

For the first six-month period of this year, the company's net earnings amounted to P31,100,000 (US$1,216,000) or P0.27 (US$0.011) per share, 70% lower than the earnings of P104,400,000 (US$3,880,000) or P0.92 (US$0.034) per share for the same period in 1994. Same period 1994 earnings included extraordinary income from the sale of investments in shares of stock.

Operating revenue for the second quarter amounted to P753,000,000 (US$29,441,000), 12% lower than the operating revenue of P858,600,000 for the same quarter of 1994. For the six-month period, operating revenue amounted to P1,542,100,000 (US$60,296,000) and was also 7% lower than the operating revenue of P1,659,900,000 for the same period 1994.

Dennis Belmonte, president and CEO of Benguet, said, "Results for the second quarter were slightly higher than the same period 1994, despite a decline in gold production output from lower ore grades in both the Benguet Antamok and Dizon Mines."

Earnings from the Dizon mines declined 44% to P25,100,000 (US$981,000) in second quarter 1995. The threat of a slide in the southeast/southwest areas of the present pit forced the relocation of mining activities to the southwest/northwest areas where the ore grades, particularly for gold, are lower.

Benguet's Antamok open pit gold mines suffered a net loss for the second quarter this year of P23,100,000 (US$905,000), due primarily to reduced production output. Also, lower ore grade increased average net production cost per ounce this quarter.

The Masinloc Chromite Operation generated net earnings of P800,000 (US$33,000) this quarter, 73% lower than earnings of P3,100,000 for the same period 1994. Belmonte attributed lower earnings to reduced operating revenue.

The non-refundable option payments received from the sale of the Paracale Gold Operation resulted in net earnings for the Paracale mines of P5,500,000 (US$215,000) this quarter. The caretaking expenses amounted to P9,400,000 (US$369,000), 17% lower than the same period 1994.

Benguet Corp's subsidiary and affiliate results of operations are as follows: Benguet Management Corp. (BMC) reported a consolidated net loss of P1,900,000 (US$74,000), 62% lower than the net loss of the same period 1994. Petrofields Exploration and Development Corp. Inc. reported a net loss of P2,500,000 (US$97,000) compared with a loss of P600,000 for the same period 1994.

Benguet recently entered into an agreement with Echo Bay Mines Ltd. and TV1 Pacific Inc. as joint venturers, to develop and operate the Kingking Project on Mindanao Island in the Philippines. The company has received the initial payment of US$2.0 million, presently treated in accounts as a liability pending completion of the full payment. After the completion of a "feasibility study," Echo Bay/TVI will have the option to acquire all of Benguet's interest in the properties. The Agreement in Principle provides for the payment of US$18 million upon execution and approval of a definitive Option Agreement. The agreement will call for a progress payment of US$10 million in July 1996 and will provide for an option price of US$67 million. The Option Agreement will permit Echo Bay/TVI up to six months following the completion of the "feasibility study" to accept.

Including lump sum and supplemental payments, Benguet could receive up to a total of US$116 million. If Benguet exercises its right to become a 20% partner, it could receive up to US$95 million.

Belmonte said, "The option payments we receive this year from the sales of the Paracale Gold Operation and the Kingking Copper-Gold Project will boost earnings for the year, provide additional cash and further improve the company's financial position. Also, the threat of a slide at the Dizon mines and low ore grade of the Benguet Antamok open pits are being addressed and, hopefully, will be resolved by year end. Prices for copper and gold are holding their current levels and the peso-to-dollar exchange rate continues to hurt dollar revenues. But we are confident that the recent initiatives will result in better performance this year."

Benguet Corp. is the Philippines' oldest mining company. Its principal products are gold, copper concentrates and chromite. -0-

BENGUET CORPORATION
and Subsidiaries
Consolidated Results of Operation
In Thousands (Except Per Share Data)
(Unaudited)

PHILIPPINE PESOS            THREE MONTHS ENDED      SIX MONTHS ENDED
                                 JUNE 30                JUNE 30
                              1995      1994        1995       1994

Operating Revenue         P 753,000  P 858,600  P 1,542,100 P 1,659,900
Operating Profit             66,500    151,300      168,200     265,700
Other Income (Expenses) -
  Net                       (64,800)  (149,900)    (137,100)   (286,200)
Net Income (Loss) Before
  Other Items                 1,700      1,400       31,100     (20,500)
Other Items (a)                ---        ---          ---      124,900
Net Income (b)            P   1,700   P  1,400  P    31,100  P  104,400
Earnings (Loss) Per
  Share (c)
Net Income (Loss) Before
  Other Items             P   0.015   P   0.01  P      0.27 (P     0.18)
Other Items                    ---        ---          ---         1.10
Net Income                P   0.015   P   0.01  P      0.27  P     0.92

US DOLLARS (d)
Operating Revenue         $  29,441   $ 31,906  $    60,296  $   61,683
Operating Profit              2,600      5,623        6,576       9,874
Other Income (Expenses) -
  Net                        (2,535)    (5,569)      (5,360)    (10,635)
Net Income (Loss) Before
  Other Items                    65         54        1,216        (761)
Other Items (a)                ---        ---          ---        4,641
Net Income (b)            $      65   $     54  $     1,216  $    3,880
Earnings (Loss) Per
  Share (c)
Net Income (Loss) Before
  Other Items             $  0.0006   $ 0.0004  $     0.011 ($    0.007)
Other Items                    ---        ---          ---        0.041
Net Income                $  0.0006   $ 0.0004  $     0.011  $    0.034

(a) Consist of non-recurring gains from the sale of investments in shares of stock.

(b) Deferred income tax is computed on a partial application basis, while unrealized foreign exchange losses are deferred and amortized to coincide with the actual repayment of outstanding foreign currency obligations. The effect of these methods is to decrease net income by P18,000,000 (US$705,000) for the second quarter but to increase net income by P19,300,000 (US$755,000) for the first six months in 1995. In 1994, the effect is to decrease net income by P25,700,000 (US$954,000) by P37,900,000 (US$1,409,000) for the same periods in 1994.

(c) Earnings per share are based on the weighted average number of common shares outstanding of 114,030,569 in 1995 and 113,995,556 in 1994.

(d) Benguet is a Philippine corporation and its books of accounts are kept in Philippine pesos. U.S. dollar figures are shown purely for convenience and were computed based on the interbank guiding rate at June 30 of P25.575 to US$1.00 in 1995 (P26.91 to US$1.00 in 1994).

CONTACT: Georgeson & Co. Inc., New York

John Shave, 212/440-9981