Post Courier | July 24, 2018
The Ok Tedi Mining Limited (OTML) board paid out K100 million as dividend to its shareholders last week Friday.
In announcing the payout, OTML board chairman Sir Moi Avei also cautioned shareholders not to have high expectations heading into the second half of 2018.
He said the company had showed its resilience to bounce back from the effects of February’s 7.5 magnitude earthquake which affected the province and the mine, including four other provinces in the southern and highlands regions of the country.
“While the performance of the business was adversely affected following the earthquake in February, production and profitability have progressively returned to more normal levels,” Sir Moi said.
“Allowing the company to make a K50 million contribution to the earthquake appeal in March 2018 and now fund an interim dividend (of K100 million).”
He thanked employees and contractors for their efforts in recovering from the effects of the earthquake while pointing out that the second half outlook, while positive, required care on the part of the recent fall in copper prices and major infrastructure development.
“While the outlook for the second half of 2018 remains positive, the recent decline in copper price and the ongoing cash requirement to complete the replacement and relocation of the in-pit crusher meant that the board continued to exercise prudence,” Sir Moi said.
Following the transfer of additional equity from the State to Western Province entities in April 2018, K67 million of the dividend was paid to the State, with the balance of K33 million paid to the Fly River Provincial Government, CMCA and Mine communities.