Mine records K754mil profit

Business

OK Tedi Mining Ltd has recorded a net profit of K754 million for the 2019 financial year.
It represents an increase of K289 million, or 61 per cent, compared to the previous year.
Chairman Sir Moi Avei told the company’s annual general meeting on Friday: “The company distributed K400 million in dividends during 2019 while investing a further K408 million in the strategically important crusher replacement project.
“This project will be completed later this year enabling access to higher grade ore and delivering an increase in production and cash generation in 2022 and beyond.
“The results reflect the benefit of improved production and continued cost discipline and were, particularly pleasing given that dry weather had prevented shipping on the Fly River for more than 50 days at the end of 2019.
“Mine production increased by 18 per cent compared to the previous year, while copper and gold production were up by 3 per cent and 9 per cent respectively.”
Production costs, determined in accordance with the industry standard Brook Hunt C1 measure, decreased from US$1.22 (K4.12)/lb in 2018 to US$0.49 (K1.65)/lb in 2019, “comfortably within the lowest cost quartile of global copper producers”.
“As we move into uncertain times in 2020 due to the Covid-19 pandemic, Ok Tedi Mining Limited is well prepared,” Sir Moi said.
“At the end of 2019, the company was in a solid financial position holding K357 million in cash and debt-free.”
But he cautioned that the residual impact of the late 2019 shipping constraints on cash collections in the first quarter of this year, and impacts of the Covid-19 restrictions and ongoing uncertainty would place pressure on the company’s financial reserves in 2020.

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