FOLLOWING the Ok Tedi Mining Limited Annual General Meeting held on 22 May 2020, Chairman Sir Moi Avei KBE announced that the Company had recorded a 2019 Profit After Tax of K754 million (US$222 million). This was an increase of K289 million or 61% compared to the previous year.
“The Company distributed PGK 400 million in dividends during 2019 while investing a further PGK 408 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,” Sir Moi said.
“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% compared to the previous year, while copper and gold production were up by 3% and 9% respectively. Production costs, determined in accordance with the industry standard Brook Hunt C1 measure, decreased from USD1.22/lb in 2018 to USD0.49/lb in 2019, comfortably within the lowest cost quartile of global copper producers.
“The strong operating performance enabled the Company to generate an additional $276 million of USD revenue in 2019 (to $1,122 million) and in doing so continue to make a contribution to the domestic currency markets.
“As we move into uncertain times in 2020 due to the COVID-19 pandemic, Ok Tedi Mining Limited is well prepared. At the end of 2019 the Company was in a solid financial position holding PGK357 million in cash and was debt free.” He cautioned that “the residual impact of the late 2019 shipping constraints on cash collections in the first quarter of 2020, and the impacts of the COVID-19 restrictions and ongoing uncertainty will place pressure on the Company’s financial reserves in 2020.”
Sir Moi thanked the management and staff for their efforts in 2019, and the shareholders for their continued support.
A copy of the 2019 Annual Review and the Financial Review can be downloaded at