OTML revenue hits K4bil

Business, Main Stories

THE improvement in copper price after the global financial crisis has contributed to Ok Tedi Mining Ltd’s K4 billion in sales revenue last year.
This revenue was 5% higher than 2008, reflecting improvement in copper price in the second quarter despite a 3% drop in the volume of concentrate shipments.
Gold price increased by 18% compared to 2008.
These were contained in OTML’s summary key results for last year,  released yesterday.
The company did not provide any forward looking statement on its expected performance for this year or provide updates on the mine closure plan, to date.
Total gold production of 16.0 tonnes (515,685oz) was slightly higher against 2008 production, keeping OTML within the top three PNG gold producers.
OTML realised an average copper price for the period of US$2.94 (K8.05) per pound, compared to US$2.64 (K7.23) per pound in  2008.
Net cash generated before dividends was down 15% compared to the previous year, mainly due to the collapse of copper price in the third quarter of 2008 resulting in refund of money to customers on settlement of shipments.
OTML paid K933 million (US$350 million) in dividends (the same as 2008), which included K765 million for the benefit of PNG interests.
Mining royalties were more than 28 % higher than 2008, with the Fly River provincial government and mine area landowners each receiving K33.6 million.
Total taxes that included corporate and mining levy among others for the year were K 245 million.
Other compensation and benefits paid during the year, including land lease payments, trusts and community mine continuation agreements totalled K70 million.
The value of goods and services provided to OTML by PNG sources amounted to K810 million.