1

CONCLUSIONS
Based on the findings, the following were the conclusion:
1. Benguet Corporation has been operational for almost 112 years, which explores for
mines, currently produces and markets gold, nickel laterite ore, limestones, and
through its subsidiaries, provides trucking and warehousing, port and shipping
services, and healthcare services, sells industrial equipment and supplies, develops
water resources and real estate projects. The company reopened Benguet Gold
Operations on alimited scale in 2003 through the Acupan Contrat Nickel Project,
developed Sta. Cruz Nickel Project in 2007, and continued to review and package its
various mineral properties for future development or sale. The company sells its gold
to the Bangko Sentral ng Pilipinas.
2. The company has efficient cash management practices. The treasury department is the
one who manages the funds of the organization. The company performs budget
planning to estimate future expenses. They also observe proper internal controls with
regards to management of cash. The company also has efficient receivables
management. They set a standard credit period policies of accounts receivables. They
also collect payments of customers via fund/bank transfer which eases collections.
The company has an efficient payables management. Regardless of incurrence of
substantial amount of payables, they performed an efficient tracking of payables due.
However, they must lessen their payables due by paying on time and avoiding
penalties and interest. The company also performed an efficient inventory
management. They determined accurately, the optimal levels of inventory to be held
at different times of the year by analyzing past inventory trends.
3. The researchers found out that the business was profitable for the past three years.
The computed gross profit margin and net profit margin indicates that the company
can still cover the cost sales and high operating expense. Based on the financial
statements, the company earned the highest income on 2011 because of the income it
earned from gain from settlement of loans and other liabilities. The computation of
return on assets and equity showed a positive percentage which means that assets are
managed efficiently and investors are having high returns from their investments. The
study also showed that the company is liquid and it can pay its liabilities as they come

due based on the computed current ratio. The company is found to be relatively stable
because almost half of their total assets are financed by borrowed capital.
4. Based on the research findings, it can be shown that financial management practices
have significant effects on the performance of Benguet Corporation. The continuing
rise in the sale of mine products and the efficient asset management is a proof of the
companys profitability, liquidity and stability. The way the financial management
practices are implemented helps them control its overall financial performance.
5. The business encountered many problems regarding the management of the business
like competition, delays in the extraction and delivery of mine products due to
weather intervention and the marketability of the mine products which result to lower
prices of the mine products, particularly, the nickel which is one of their primary mine
products.

RECOMMENDATION
1. Theres often an uncertain demand for the different mine products. To make the right
decision whether to export mine products or not, the company must have access to
information about the market demand in real time. The company must analyze the data to
predict future movements.
2. Benguet Corporation must improve its program regarding the environment production,
water recycling and waste processing. The company must use cleaner production
techniques and they must have environmental control techniques. They must also find
new ways to dispose its waste so that it will not damage the environment.
3. It is very important to remove as much of the desired ore from the mined material as
possible in order for the mining operation to remain economically feasible. Miners must
not only monitor the incoming material to maximize the extraction process, but the waste
material must be monitored just as closely to ensure that none of the valuable minerals
are lost.
PROBLEMS
1. Theres often an uncertain demand for the different mine products.
2. Mining processes produce large volumes of waste, some of it highly toxic. This waste can
result in acid mine drainage and groundwater contamination, and needs close monitoring
to ensure that it has been neutralized before being returned to the earth.
3. The company is also facing some productivity issues. With most of the easily-accessible
high grade ores almost tapped out, companies are faced with the challenge of either
mining low grade ore bodies or mining in difficult or remote regions

RECOMMENDATIONS
Based from the conclusions, the following recommendations were offered:
1.
2
3. To make the best decision possible, it is important to have access to the information in real
time to manage competing decisions. By using a dashboard, the company will become as
analytical as possible, by being able to predict future movements by data analysis.

Problems Encountered

1. Due to rainy seasons, Benguet Company is slowing down their operations. Heavy rain
can close mines and bog down access roads. Therefore, the companys sales are being
affected.
2. The prices of nickel is declining in the market. Because of this, the sales of the company
decreases and profit also decreases.
3. Managing Demand uncertainty