Bougainville Copper Limited.Business Editors LONDON--(BUSINESS WIRE)--March 9, 2000 The directors of Bougainville Copper Bougainville Copper Ltd is a copper, gold, and silver mining company that operated the Panguna open cut mine on the island of Bougainville in Papua New Guinea (PNG). The Panguna mine dominated the economy of the island during the 1970s and 1980s, and was highly significant to the Limited announce the following audited results of the company for the year ended December 31, 1999 together with comparable results for twelve months to December 31, 1998.
Financial Results
1999 1998
K'000 K'000
Net write-off of
aged debtors and creditors 1 590 -
Interest income 16 662 12 397
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18 252 12 397
Less:
General and administration
expenses 4 764 5 182
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Profit/(loss) before
exchange effects
and taxation 13 480 7 215
Net exchange gain 440 481
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Profit before taxation 13 928 7 696
Income tax expense - -
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Net profit 13 928 7 696
Average A$/Kina exchange
rate for period 0.5981 0.7617
Equivalent net profit
in A$'000 8 330 5 862
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-0-
While the peace process has held, it has not resulted in the company gaining access to the mine site or being able to assess the condition of many of its assets. After a decade of planning for a return to the mine site and being no closer now to realizing the plan the Board has started to look at alternative strategies for the company. Among the range of possibilities is the divestment divestment to strip one's investment from an entity. of the Bougainville assets. A combination of factors have eroded e·rode v. e·rod·ed, e·rod·ing, e·rodes v.tr. 1. To wear (something) away by or as if by abrasion: Waves eroded the shore. 2. To eat into; corrode. the Board's optimism that mine re-development can be achieved in the short to medium term. The prices of copper and gold are lower today than when the mine closed. Company plant and equipment has been badly damaged. While currently the main issue for Bougainville is its political future BCL's historic association with the conflict is an enduring issue. The mine may have a better chance of re-opening and therefore be of greater value to owners other than BCL BCL - The successor to Atlas Commercial Language. ["The Provisional BCL Manual", D. Hendry, U London 1966]. . Interest rates have remained high resulting in earnings increasing to K16.7 million from last year's K12.88 million. Some rationalization of the balance sheet with respect to aged debtors and creditors has resulted in an abnormal gain of K1.6 million. Net profit for the year is up by K6.2 million to K13.9 million. The value of the Kina ki·na n. pl. kina See Table at currency. [Indigenous word in Papua New Guinea.] Noun 1. has continued to decline from an average A$0.7617 in 1998 to A$0.5981 in 1999. This is significant for any redevelopment work that is priced in US$ and A$. BCL is required by Government regulation to hold its cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. on shore in Kina. 1999 DIVIDEND Directors have not declared a dividend in respect of 1999. BORROWING No borrowings were outstanding at year-end. ANNUAL REPORT The Annual General Meeting of the company will be held at the Port Moresby Port Moresby (môrz`bē), town (1990 pop. 193,242), capital of Papua New Guinea, on New Guinea island and on the Gulf of Papua. Rubber, gold, and copra are exported. Port Moresby was founded by Capt. John Moresby, who landed there in 1873. Parkroyal at 11.00 am on 3 May 2000. The Annual Report and Notice of Meeting will be mailed to shareholders on approximately March 31, 2000. STOCK EXCHANGE The standard pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma Appendix 4B was lodged with the Australian Stock Exchange Australian Stock Exchange (ASX) Australia's major securities market, formed when the six state stock exchanges (Adelaide, Brisbane, Hobart, Melbourne, Perth, and Sydney stock exchanges) were merged in 1987. in accordance with official listing requirements Listing requirements Requirements, including minimum shares outstanding, market value, and income, that are laid down by an exchange for any stock to be listed for trading. . |
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