2007 Summary of Key Results
- Full year sales revenue was PGK5.0 billion, 8 percent higher than in 2006 reflecting sustained high copper prices, 12% higher average gold price and 7% higher volume of concentrate shipments.
- Total gold production of 15.5 tonnes (498,790 ounces) was 9 percent below 2006 production, keeping OTML within the top three PNG gold producers.
- The company realised an average copper price for the period of US$ 3.35 per pound, compared to US$ 3.24 for 2006.
- Net cash generated before dividends, is down more than 50% on the previous year, due to the combined effect of higher spending on capital projects, timing issues on the payment of income tax relating to other years, and a large increase in working capital.
- Dividends paid were PGK1.4 billion, which included PGK1.2 billion for the benefitof PNG interests.
- Mining royalties were 11 percent lower than 2006, with the Fly River Provincial Government and mine area landowners each receiving PGK45.0 million.
- Total taxes (i.e. Corporate, PAYE, WHT and Mining Levy) and dividends for the year were close to PGK1.3 billion.
- Other compensation and benefits paid during the year, including land lease payments, trusts and Community Mine Continuation Agreements totalled PGK58 million.
- Goods and services provided to OTML from PNG sources was PGK408 million.
- Mid-term CMCA review was successfully finalised during 2007 and involved over 500 village and regional meetings with independent facilitators and observers. Agreement was reached on a fourfold increase in payments by OTML as part of an overall increased benefits package totalling just over 1.0 billion kina.
- The Mine Waste and Tailings Project to remove pyrite from mine tailings, thus reducing future impacts on the river system, was approved by government, and is currently under construction. Commissioning of the plant is due to commence in July
| 2007 | 2006 | 2005 | |
| Production | |||
| Head grade copper (%) | 0.76 | 0.82 | 0.89 |
| Head grade gold (grams per tonne) | 0.85 | 0.88 | 0.97 |
| Mill Throughput ('000 tonnes) | 25,771 | 27,561 | 25,351 |
| Copper (tonnes) | 169,184 | 194,355 | 192,978 |
| Gold (oz) | 498,790 | 550,099 | 574,694 |
| Sales | |||
| Concentrate (DMT) | 668,475 | 622,158 | 711,215 |
| Contained copper (tonnes) | 186,525 | 177,538 | 204,840 |
| Contained gold (oz) | 523,437 | 505,234 | 594,402 |
| Safety (including contractors) | |||
| Lost Time Injuries | 3 | 6 | 2 |
| Lost Time Injury Frequency Rate | 0.26 | 0.60 | 0.22 |
| Disabling Injury Frequency Rate | 1.47 | 1.50 | 1.44 |
| Financials (Kina '000's) | |||
| Sales Revenue | 5,041,781 | 4,646,982 | 3,329,557 |
| Profit Before Tax | 2,913,095 | 2,680,911 | 1,492,338 |
| Tax | (872,556) | (799,743) | (445,059) |
| Profit After Tax | 2,040,539 | 1,881,168 | 1,047,279 |
| Net Cash Flow (before dividends) | 1,008,250 | 2,216,390 | 973,840 |
| Dividends Paid | 1,439,901 | 1,808,257 | 925,050 |
| Royalties | 90,083 | 80,879 | 55,999 |
| Financials (USD '000's) | |||
| Sales Revenue | 1,701,652 | 1,540,907 | 1,084,499 |
| Profit Before Tax | 1,001,542 | 874,315 | 463,914 |
| Tax | (293,707) | (265,280) | (145,100) |
| Profit After Tax | 707,834 | 609,035 | 318,814 |
| Net Cash Flow (before dividends) | 362,471 | 736,454 | 316,302 |
| Dividends Paid | 500,000 | 600,000 | 300,000 |
| Royalties | 26,345 | 28,635 | 18,237 |