Final K300mil dividend


THE OK Tedi Mining Ltd (OTML) has declared a final dividend of K300 million – paid last Friday to its shareholders, bringing total dividends this year to K450 million.
OTML chairman Dr Roger Higgins said despite a fire at the mine’s processing facility late last year that impacted its January production, a two-week suspension of operations in March this year and ongoing labour shortages due to the Coronavirus (Covid-19), the company benefitted from a strong final quarter production and favourable metal prices.
“This enabled the board to declare a dividend to Kumul Minerals (Ok Tedi) Ltd, which now owns 67 per cent of Ok Tedi following the recent transfer of shares from the PNG Government, and the three landowner entities representing our communities and collectively owning 33 per cent of the company,” Higgins said.
He said OTML continued to maintain a strong balance sheet with no debt and liquidity remaining within the established guidelines.
He added that next year would be a modest year as the business transitions from low grade to high grade ore which would present in 2023.
With the recent appointment of three new directors to the OTML board, including the first female director, Higgins is confident that OTML would continue to deliver value to its shareholders.
He also announced that the board had approved an investment of nearly K750 million over the next two years to refurbish and upgrade the aging processing facility to ensure its effective and efficient operation beyond the current mine life of 2032.
Meanwhile, the OTML special mining lease is due to expire in May 2022. An application for the renewal of the SML and associated leases had been lodged with Mineral Resources Authority last Monday.