Acorita, Manilyn et.al. 4 0

A Five Year Financial Plan for Benguet Corporation / 6 6 Acorita, Manilyn; Alfaro, Locel; Aliser, Joan; Alonzo, Rochelle; Alvaran, Eloisa; Bacleon, Marife; Brioners, Rosemarie; Bulawan, Noli and Cabug, Jean Michelle. - - - 107 pp. 28 cm. - - - - - . - . - 0 . - . - 0 .

EXECUTIVE SUMMARY: Benguet Corporation was established in 1903, pioneering the first major mining operation in the Philippines. It spearhead a consolidation and expansion of gold mines as well as the diversification in other mineral products like copper, chromite and lime. Until the late 1980, Benguet Corporation was known as the biggest gold mining company in the Philippines and the 16th largest in the world. Similarly, its chromite operation in Masinloc, known internationally as Masinloc Ore, and its highly profitable Dizon Copper Gold operation in San Marcelino, Zambales were the largest in the country. The inspiring of the company reveals a potent organization with a distinct capability to overcome and survive extremely difficult circumstances, such as countless natural disasters, political upheavals and cyclical economic conditions. Over the past 100 years, Benguet has built up its professional reputation as the colossus of Philippine mining. This is evident in its hardy pioneering spirit, introducing modern technology and innovative mining practices which have become models of the industry, through its mutually beneficial labor relations and support for its workforce and families to build better lives and progressive communities. Through corporate consolidation and forward-looking management strategies, the company's premier mining company for the competent leaders and its pool of dedicated and talented employees, who have distinguish themselves in the industry. Benguet Corporation will continue to do that it knows and does best which is natural resource development. Aside from its core business of mining and mineral exploration, the company and its subsidiaries will be actively engaged in land and water resource development, construction, engineering and technical services, forest management and eco-tourism, while maintaining its interest in allied industries such as steel casting, trucking and warehouse management, and trading. Benguet Corporation has set its vision to be the leading total natural resource development and services conglomerate, imbued with zest and determination to transform its assets into trailblazing projects that build upon the heritage of the Company. Benguet Corporation aims to be a responsible, profitable and growth oriented conglomerate engaged in natural resource development. Despite being one of the well known pioneers in mineral exploration, the company still experiences difficulty in having a stable financial position. They are having problems in meeting its current and long term obligations thus becoming highly dependent to debts with increasing interests. They will also have greater possible losses because of company's uncollected accounts. Most of the firm's financial decisions were proved wrong after all the unfavorable impacts to the company. In order to solve these problems, the researchers proposed alternative course of actions that will help the company in resolving the current problems. The proponents specifically purport to focus on mitigation of risk that comes with mining sector, the risk of having futile explorations and on the alleviation of capital deficiency of the company. First, the company will be able to infuse additional capital to solve capital deficiency in financing a certain project. This will be done by coordinating to the Philippine Stock Exchange since it is one of the listed companies. Second, the company may use conversion of payable into redeemable stock which aims to reduce the liability without incurring cash outlay. This will also reduce payments to accruing interest of payables. Lastly, revision of the credit policy should be strictly imposed to assure the success of the proposed alternative courses of action. With this, Benguet Corporation will decrease the length of collection period that will enhance the firm's liquidity. The abovementioned proposals are expected to restore the company's stability and enable it to continue as a going concern since it is a listed company.;Financial Plan (BS in Business Administration major in Fiannce and Treasury Management) - Pamantasan ng Lungsod ng Maynila, 2012





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