Benguet announces third quarter results.

MANILA, Philippines--(BUSINESS WIRE)--Nov. 28, 1994--For the third quarter, Benguet Corporation reported a net loss of P90,600,000 (US$3,486,000) or P0.08 (US$0.031) per share, compared with the net earnings of P1,400,000 (US$46,000) or P0.01 (US$0.0004) per share for the same quarter in 1993.

Benguet's operations for the third quarter of 1994 were adversely affected by low plant availability and poor ore grade. This substantially reduced production output. Nonetheless, the company's cash position remains healthy even as the first installment of the company's restructured loans was paid at the end of the third quarter period.

The third quarter net loss offset Benguet's net earnings from previous quarters this year. For the nine-month period the company reported consolidated net earnings of P13,800,000 (US$530,000) or P0.12 (US$0.0046) per share, as compared to the net earnings of P324,300,000 (US$10,879,000) or P2.85 (US$0.095) per share for the same nine-month period last year (which included extraordinary gains of P698,000,000 (US$23,413,000) from the sale of part of the company's stockholdings and real estate properties).

Operating revenue for the third quarter this year amounted to P583,600,000 (US$22,446,000), 32% lower than the operating revenue of P864,000,000 for the same quarter in 1993 despite improved metal prices. The lower revenue was the result of significantly lower production outputs and an unfavorable foreign exchange rate compared to last year. For the nine-month period in 1994, operating revenue declined by 6% to P2,243,500,000 (US$86,288,000) from P2,393,100,000 for the same period in 1993.

Earnings from the Dizon mine dropped to P4,700,000 (US$259,000) in the third quarter of this year from P12,600,000 in 1993. The mine experienced prolonged plant downtime from unexpected mechanical breakdowns in the concentrator plant. Low ore grade programmed for mining this quarter also reduced copper concentrate production. For the nine-month period, however, earnings from the Dizon mine of P79,100,000 (US$3,041,000) were 495% higher than the earnings of P13,300,000 in 1993. By October of this year, the mine is now at the higher grade portion of the open pit. This should improve the

Dizon mine production output in succeeding quarters. The problem of cracking flange bolts of the ball mill is being addressed with the visit of a mechanical engineering consultant.

Benguet's Antamok Gold Operation also experienced a decline in gold production output because a tremor in January this year collapsed a portion of the mine's north wall. Early rains in the second quarter adversely affected the timetable for cleanup. As a result, the mine was forced to source low-grade material, which reduced gold production output. This resulted in a net loss for the Benguet-Antamok open pit mine of P45,800,000 (US$1,761,000) during the third quarter period, compared with the net earnings of P4,900,000 for the same period in 1993. For the nine-month period, however, net loss was P42,100,000 (US$1,619,000) this year, as compared with a net loss of P70,300,000 in 1993.

The problem of low-grade ore has been resolved by the start of the fourth quarter as the Benguet-Antamok open pit mine was able to almost completely clean up the pit bottom of silt material and open up access to better grade ore. These favorable conditions should increase production output from the Benguet-Antamok mine closer to its regular target levels.

Earnings from the Masinloc mine amounted to P4,000,000 (US$153,000) this quarter, 3% higher than the earnings of P3,900,000 for the same quarter in 1993. For the nine-month period, earnings amounted to P9,200,000 (US$355,000) in 1994, compared with the net loss of P3,700,000 for the same period last year. Shipments of refractory ore for the quarter and for the year to date were 14,393 tons and 44,399 tons, respectively, this year, compared with 16,050 tonnes and 45,678 tonnes for the same period in 1993.

The Benguet and Paracale underground mines remained closed during the third quarter. The maintenance costs for the Benguet mine and the losses from the tails buying operation of the Paracale mine have been reduced to P23,200,000 (US$891,000) this quarter from losses of P26,200,000 for the same quarter in 1993. For the nine-month period, aggregate losses from these mines were P62,300,000 (US$2,395,000), 59% lower than the losses of P152,100,000 in 1993. These mines are in the market for potential investors either for an outright sale or for a joint-venture arrangement.

Amortization of option premium costs for copper and gold options bought in late 1993 to protect Benguet's ability to pay its loan obligations amounted to P9,500,000 (US$364,000) this quarter and to P22,300,000 (US$858,000) for the nine-month period this year, net of gains from deferred sales of gold. For the same periods in 1993, earnings from metal trading transactions mainly from sale of copper price insurance contracts amounted to P12,200,000 for the third quarter and P9,700,000 for the year to date.

Benguet Management Corporation (BMC), a 100%-owned subsidiary of the company, and its subsidiaries reported a consolidated net loss of P2,500,000 (US$96,000) for the third quarter this year, compared with the earnings of P6,400,000 for the same quarter in 1993. For the nine-month period, BMC reported a consolidated net loss of P10,600,000 (US$408,000), 13% higher than the loss of P9,400,000 for the same period in 1993.

BenguetCorp. International Limited (BIL), the company's Hong Kong-based 100%-owned subsidiary for international operations, reported a nominal loss of P8,000 (US$308) for the third quarter and P139,000 (US$5,300) for the nine-month period this year, compared with the loss of P200,000 and P1,600,000 for the same respective periods in 1993. BIL and its 100% owned subsidiary, BenguetCorp U.S.A., were largely inactive this year.

Petrofields Exploration & Development Co., Inc. (Petrofields), a 20%-owned affiliate company, reported earnings of P3,500,000 (US$136,000), principally from non-recurring gains from the sale of real property, for the third quarter, compared with the net loss of P1,000,000 in 1993. Petrofields' earnings for the third quarter reduced its net loss for the nine-month period this year to P3,000,000 (US$117,000) as compared with the earnings of P450,000 in 1993. Petrofields holds a 5% participating interest in the West Linapacan oil fields located in Palawan province.

During the quarter, Benguet terminated negotiations with the TVI group of companies for a joint venture over the Kingking claims at Davao del Norte in Southern Philippines. On the basis of their earlier proposal, Benguet commenced formal negotiations but failed to come to an agreement with the TVI group. Accordingly, Benguet decided to continue on its own Phase II-B of the exploration work program over the Kingking properties. The exploration program will consist of additional drilling work, preparation of environmental impact assessment statements, and updating the preliminary feasibility study preparatory to the final feasibility study. Other prospective partners have been invited to join in the operation of the Kingking project on the basis of "pre-defined terms and conditions" set by the company.

At the start of the fourth quarter this year, Benguet's production outputs from both the Dizon and the Benguet-Antamok mines have significantly improved. Management expects Benguet's mining operations to return to healthier levels in the first half of the year.

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

                      Benguet Corp. and Subsidiaries
                Unaudited Consolidated Results of Operations
                  In thousands (except per share data)
                             (Unaudited)

                          Three months ended      Nine months ended
                               Sept. 30               Sept. 30
PHILIPPINE PESOS          1994        1993        1994         1993

Operating Revenue      P 583,600   P 864,000   P 2,243,500  P 2,393,100
Operating Profit
 (Loss)                (  32,400)    119,400       233,300      211,300
Other Income
 (Expenses) Net        (  58,200)   (139,800)  (   354,000) (   585,000)
Net Income (Loss)
 Before Other Items    (  90,600)   ( 20,400)  (   120,700) (   373,700)
Other Items (a)               --      21,800       134,500      698,000
Net Income (Loss)(b)   (P 90,600)   P  1,400    P   13,800   P  324,300
Earnings (Loss) Per
 Share (c)
Net Income (Loss)
 Before Other Items    (P   0.08)  (P   0.18)  (P     1.06) (P     3.27)
Other Items                   --        0.19          1.18         6.12
Net Income (Loss)      (P   0.08)   P   0.01    P     0.12   P     2.85
------------------

U.S. DOLLARS (d)

Operating Revenue      $  22,446   $  28,982     $ 86,288    $  80,272
Operating Profit
 (Loss)                 (  1,247)      4,005        8,972        7,090
Other Income
 (Expenses) -Net        (  2,239)  (   4,690)    ( 13,615)   (  19,626)
Net Income (Loss)
 Before other items     (  3,486)  (     685)    (  4,643)   (  12,536)
Other Items (a)               --         731        5,173       23,413
Net Income (b)         ($  3,486)  $      46     $    530    $  10,879
--------------------

Earnings Per Share (c)
Net Income (Loss)
 Before Other Items    ($  0.031)  ($ 0.0060)   ($ 0.0407)   ($  0.110)
Other Items                   --      0.0064       0.0453        0.205
Net Income (Loss)      ($  0.031)     0.0004      $0.0046     $  0.095
----------------------
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(a)  Consist of non-recurring gains from the sale of investments in
shares of stock and real estate properties.

(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 increase
the net loss by P43,400,000 (US$1,669,000) for the third quarter and
decrease net income by P81,300,000 (US$3,128,000) for the first nine
months in 1994.  In 1993, the effect is to increase net income by
P190,100,000 (US$6,375,000) and by P249,400,000 (US$9,367,000) for
the same periods in 1993.

(c)  Earnings per share are based on the weighted average number of
common shares outstanding of 114,005,359 in 1994 and 113,982,846 in
1993.

(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 Sept. 30 of P26.00 to US$1.00 in 1994 (P29.81 to US$1.00 in
1993).

CONTACT: Georgeson & Company Inc., New York

Morgan Molthrop, 212/440-9964