Bougainville Copper Ltd posts K3.7 million loss in 2011

Bougainville Copper Ltd (BCL) yesterday (Tuesday) announced a loss of K3.7 million in 2011, compared to an anticipated loss of K7.3 million, The National reports.

 Because of this, no dividend would be paid, chairman Peter Taylor announced at BCL’s 45^th annual general meeting in Port Moresby.

 “Overall, income and costs were generally within budget, admin and exchange losses being over, offset by a similar amount under budget for BCA renegotiation,” he said.

“Interest of K2.2m earned on court-held IBDs has been brought into account this year.

 “Due to the loss recorded and the need to preserve cash for future development the company will not pay a dividend.

“The company has sufficient funds to cover its recurrent expenditure under the current plan and is debt free.”

Taylor said he was more optimistic about the future of this company than any year out of the previous 20 years.

 “There are activities on foot in several areas that can positively assist Bougainville Copper Ltd make a return to profitable mining,” he said.

“Some of these are within the control of the company itself, others less so.

 “The most-beneficial change has been the focus of Panguna landowners and other Bougainvilleans on the re-development agenda, and the initiatives they have taken to contribute to momentum.”

Taylor also talked about BCL’s:

• ·         Investment strategy; 
• Ongoing tax dispute with the Internal Revenue Commission of PNG;

•    Litigation in the United States;

• ·         Corporate governance;

• ·         Safety;

• ·         Risk management;

• ·         Bougainville Copper Foundation

• ·         Significant events, beginning on Bougainville; and

• ·         Bougainville Copper Agreement

 Taylor said Prime Minister Peter O’Neill had confirmed in the Parliament that BCL had, by right of the BCA, permits to operate at Panguna for a further 21 years from 2011.

“It is possible that some further remediation work will be carried out on site with the co-operation of landowners, to make areas safe whether mining proceeds or not,” he said.

“President (John) Momis has been proactive in assisting the company carry out safety work. 

“Again, the landowners will be informed and involved as appropriate.

“The vision to return to active exploration and profitable mining remains and, I am pleased to say, with the active support from local stakeholders to which I have earlier referred. “