The Annual General Meeting is an opportunity for me as chairman to make a statement concerning the up to date affairs of the company. Copies of this statement are available here today and will be posted on our website.
Financial Results
The results for the year ended December 31, 2016 as reported in the Annual Report, recorded a loss after tax of K5.231 million for the parent company (2015 K37.863 million). The financial statements include a consolidated result after including the Bougainville Copper Foundation now a subsidiary of Bougainville Copper.
Revenue from interest and dividends for 2016 was K6.3 million (2015 K4.8 million) which included a K1.3 million gain arising on fair value of plant and equipment acquired.
Operating expenses for the year were K11.5 million compared with K11.3 million in 2015.
The company will not pay a dividend.
The company has sufficient funds to cover its recurrent expenditure under the current three year plan and is debt free.
Liquid Assets
At the end of 2016 the company’s liquid assets were K18.9 million in cash (2015 K29 million) and K113.3 million (2015 K109 million) in Australian listed equities. The company’s investments are linked to the performance of the Australian equities market and the A$: K exchange rate. The company sold shares worth K1 million and reinvested dividends of K3.2 million during the year.
Progress as independently managed PNG company
Since becoming independently managed it is most pleasing to report that Bougainville Copper is making meaningful progress in our vision ‘to return to active exploration and profitable sustainable mining. The New Panguna will be for the benefit of the stakeholders.’
Highlights include
• Compliant and efficient transition from Rio Tinto to independently managed PNG company
• Appointment of Sir Moi Avei as Director with the approval of ABG and the National Government
• Preparation of a staged re-development plan for a New Panguna
• Acceptance of the staged development plan by the ABG, Landowners and PNG Government
• Material progress with respect to Stage zero of the re-development plan
• President Momis and Prime Minister O’Neill sponsored the formation of a Joint Steering Committee comprising representation from the ABG, Landowners, National Government and BCL to advance re-development.
• Historic compensation payments are well underway and planned to be completed by Q3 2017