Ok Tedi nets K913mil

 By MALUM NALU

OK TEDI Mining Ltd (OTML) recorded a net profit of K913 million last year, down from K1.2 billion in the previous year, the company revealed yesterday.

Profit before tax was K1.2 billion, down from K1.8 billion in 2011.

Total sales revenue was K3.3 billion (K4.5 billion in 2011), while operating costs were K2.1 billion (K2.6 billion). 

Income tax was K331 million (K604 million).

These figures were disclosed by OTML general manager government and external relations Musje Werror at the PNG Sustainable Development Program (PNGSDP) annual report meeting in Port Moresby.

“Our revenue was affected by the lower production due to plant reliability issues, failure of the pyrite concentrate pipeline in the prior year, and our copper concentrate pipeline was blocked for almost the whole month of April 2012,” Werror said .

“This was as well affected by the low river level by the end of 2012, as such our last parcel of shipment did not make it through during the month.

“In general, copper and gold prices remained strong in 2012, but indicated lower against 2011, in particular copper and silver. 

“Our kina expenditures were impacted by the weak US dollar.

“Operating costs were 21% down against the prior year due to our continued cost measures in place.”

OTML paid total taxes of K444 million (K1.1 million), K65.4 in royalties (K85.8), K67.8 million in compensation (K69.8), and K722.9 million in dividends (K1.55 billion).

“If we not include Inmet (former shareholder) in the equation, 2012 dividend will be almost the same as 2011. The Inmet dividend in 2011 represents the US$335 million lump payment for the share buyback,” Werror said.

The report showed a strong balance sheet with total assets of K3.4 billion, and total liabilities of K866 million, for a total equity of K2.6 billion.