OTML suffers profit fall

Business, Normal

The National, Wednesday October 30th, 2013

 OK TEDI Mining Ltd (OTML) posted a net profit of K913 million (US$472 million) last year compared with K1.24 billion (US$621 million) in 2011, according to the company’s annual report.

The company’s 2012 report said its revenue also dropped from K4.54 billion in 2011 to K3.36 billion last year.

Last year, the miner invested K39.4 million in its exploration and drill programmes.

OTML chairman Sir Mekere Morauta said the company last year paid K723 million in dividends and siphoned K2.6 billion to the economy.

He said the last financial performance was achieved in an environment of continued international operating stress and fluctuating metal prices.

Material mined last year was up 54.9 million tonnes from 41.2 million tonnes in 2011.

Sir Mekere said pending a decision on the mine life extension, the company had been carefully managing its existing ore reserves to achieve maximum value as gold and copper grades declined gradually.

“The continuance of the mine would support the copper market with output although at a smaller volume than the previous years,’” he added.

OTML managing director and chief executive Nigel Parker said the copper market was a moving target with new mines being developed in remote sites.

He said these may be located in inhospitable environments, which would require high capital costs.