The directors of Bougainville Copper Limited announce the following audited results of the company for the year ended 31 December 2013 together with comparable results for twelve months to 31 December 2012.
Results
For the year ended December 31 2013, a profit of K6.8 million has been recorded, compared to a planned loss of K10.4 million. The result comes after a write‐back of a provision of K8 million. Income from interest and realised gains on disposal of investments were above budget, with administration and project costs being under budget.
Financial Results
|
2013 K’000 |
2012 K’000 |
|
|
Realised gain on disposal of investments |
4,647 |
657 |
|
Exchange gains |
494 |
‐ |
|
Interest |
832 |
820 |
|
Dividends |
3,959 |
4,674 |
|
9,932 |
6,151 |
|
|
Less: |
||
|
General and administration expenses |
(11,314) |
(11,348) |
|
Exchange Losses |
– |
(227) |
|
Write‐back of provision |
8,160 |
‐ |
|
(3,154) |
(11,575) |
|
|
Profit/(Loss) before taxation |
6,778 |
(5,424) |
|
Income tax expense |
– |
– |
|
Net profit /(loss) |
6,778 |
(5,424) |
|
Equivalent net profit/(loss) in A$’000 |
3,026 |
(2,569) |
The historic visit in January 2014 to previous no‐go areas on mainland Bougainville by PNG Prime Minister Peter O’Neill, the first by a serving Prime Minister in fifteen years, has generated a wave of conciliatory sentiment among many stakeholder groupings previously unwilling to declare an end to long held hostilities.
The Prime Minister visited Buka, Buin, Siwai, Arawa and the Panguna heartland of the Bougainville independence movement, generally receiving an enthusiastic welcome.
Bougainville Copper Limited is encouraged by this new spirit of engagement, as it enters a year in which planned reconciliation ceremonies should see it re‐establishing an administrative presence at Arawa, to launch and manage studies aimed at assessing bio‐ remediation needs, community development programs, social mapping, asset revaluation and de‐risking.
Positive dialogue between stakeholders including the Autonomous Bougainville Government (ABG), the National Government of PNG, landowners, Bougainville communities, ex‐combatants and BCL continues to advance the prospect of re‐opening the mine.
Following the Prime Ministerial visit, ABG President John Momis re‐affirmed the high priority that the ABG places on a re‐start of operations at Panguna.
The company continues to evaluate the findings of the “2012 Order of Magnitude Study”.
The emerging results of this study broadly indicate that it would be economically viable to redevelop the Panguna mine. Further commentary on developments in both the political and fiscal environment surrounding the project is scheduled for the 2014 Annual General Meeting in May.
Further studies, including pre‐feasibility and bankable feasibility, will be necessary before any decision on redevelopment of the Panguna mine can be made. It is not intended to undertake further major studies until consultations with governments, landowners and other stakeholders result in broad support for redevelopment.
2013 Dividend
The Directors have not declared a dividend in respect of 2013.
Borrowing
No borrowings were outstanding at year‐end.
Annual General Meeting and Annual Report
The Annual General Meeting of the company will be held at the Grand Papua Hotel, Port Moresby at 2.00pm on Tuesday 6th, May, 2014.
The Annual Report and Notice of Meeting will be mailed to shareholders on or about 04 April, 2014.
Stock Exchange
The standard proforma Appendix 4E was lodged with the Australian Stock Exchange in accordance with official listing requirements.
By order of the Board.
Paul D Coleman
Company Secretary
The full press release, including appendices, can be downloaded here.