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Business |
Emperor suffers loss of US$237m in
H1
By BIBIAN BARRENG
EMPEROR Mines Ltd
has reported a loss of US$237 million (K690 million) in a
preliminary financial report for this year’s first half.
The company also disclosed a loss of US$195 million (K567
million) from the sale of its Vatuloula operations in Fiji.
The company said its production costs and operations in Tolukuma,
Central province were affected throughout the year by a series
of unexpected events.
These incidents, according to Emperor, included a serious
failure of the sag mill, a collapse of the Tinebar decline, the
flooding of the Gulbadi section, a 14-day weather event that
prevented access, a helicopter crash, a lightning strike on the
hydro power generation facility and an industrial dispute.
The company statement said that production at Porgera mine in
Enga province was being affected by ongoing repairs on the West
wall of the open pit mine.
A lightning strike on its power generation facility at Hides led
to lower production capacity during the March quarter.
Emperor entered into an agreement to sell its 20% interest in
the Porgera Joint Venture last April at a cost of US$255 million
(K742 million).
The sale was completed last Aug 17 with Emperor retiring all its
debt facilities, thus leaving the company debt hedge free and
with available cash in excess of US$$125 million (K363.9
million) before the capital return.
The company will be in excess of A$70 million (K167 million)
after the completion of a capital return to be made to
shareholders.
 
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