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| Bougainville Copper unveils K3.6m profit last year | |
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By ANTON HUAFOLO BOUGAINVILLE Copper Ltd again declared a modest profit of K3.6 million for last year owing to a strong Australian equities market, compared to a K3.7 million profit in the preceding year. Speaking at a well-attended BCL annual general meeting yesterday, chairman Peter Taylor said although the profit for the two periods was similar, operating expenses rose last year, but the increased costs were offset by increased investment income. Mr Taylor said the company maintained over the years an investment strategy of investing its surplus cash in the equities market in Australia that has also resulted in the unrealised gain and profit for the company in 2007. Capital gains are not being taxed in the country, which Mr Taylor said is important for BCL as the company “cannot claim depreciation on its remaining Bougainville assets”. He said in addition to the K3.7 million profit last year, there was a K22 million capital growth which together with the net profit equates to a 7% increase in shareholder funds. “The strong Australian equity market in the reporting year has again resulted in a positive return in Australian dollar terms, much of the unrealised gain being of a capital nature,” he said. “The move into equities was prompted by a sharp fall in the PNG domestic interest rates and a lack of suitable alternative investments in PNG vis-a-vis the investment criteria established,” he said. BCL had an investment income of K9 million in 2007, compared to K8.2 million in 2006, and earnings per share of 90 toea in 2007 and 91 toea in 2006, with share holders return at 0.88% in 2007 and 0.967% in the preceding year. BCL intends to continue the current investment strategy this year. Mr Taylor also said though BCL does not have direct access to the mine presently, 2008 will be a year for the company to work towards active exploration and mining on Bougainville. He pointed out that it will be a lengthy process taking two to five years but the company is going to take a “low key way” in ensuring that there is stakeholder as well as local community input and agreement on tailings disposal. He added that the mine will bring prosperity to everyone, including Bougainvilleans, from high economic activity, social benefit and high employment when it opens. The company will also be actively involved in assisting the people of in the reconciliation process on Bougainville. |
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