H’lands Pacific profit in 2009 plunges 91%

Business, Main Stories

HIGHLANDS Pacific Ltd (HPL) has recorded a 91% loss in net profit for the year ending Dec  31, 2009.
It posted US$1.1 million (K3 million) in net profit last year as against US$12.3 million (K34 million) in 2008.
But it increased its cash reserves to more than US$23 million (K64 million) from US$20 million (K56 million) the previous year.
The figures were contained in the group’s audited financial statement for last year’s financial status.
HPL managing director John Gooding said:  “While the past year has caused significant financial distress to many companies, the 2009 accounts show Highlands in a robust shape.
“In 2009, our two major projects –  the Frieda copper gold project and the US$1.4 billion (K4 billion) Ramu nickel cobalt project came firmly into view.”
The key features of 2009 financial year included:
*US$1.3 million (K4 million) gains on disposal of surplus properties in Madang province.
The properties consisted of six residential houses and an office complex.
The houses were used in recent times as accommodation for the Kainantu project which was sold in December 2007 and the office was used as the initial administrative office for the Ramu project prior to the finalisation of the permanent office complex.
*A gain of US$3 million  (K8 million) from the disposal of exploration licence (EL) 1277.
The EL was part of the sale to Barrick Gold Corp  two years ago and was delayed due to administrative issues with the renewal and transfer process; and
*A foreign exchange gain of US$2 million (K2 million).