Ok Tedi Mining Limited (OTML) generated a record K684 million (USD$184 million) for the month of December in 2023, the highest recorded monthly revenue for the year.
This result comes off the back of increased production and favourable metals prices, which were above budget for the month. Other factors contributing to the record revenue include strategic business improvements, operational efficiency, cost management, and uninterrupted copper shipments to buyers.
OTML produced Copper Concentrate of 45Kdmt to push up sales in December generating USD$107 million (K398 million). Additionally gold generated USD$75 million (K278 million) and Silver generated USD$2.4 million (K8.9 million).
OTML Managing Director and Chief Executive Officer, Kedi Ilimbit, said “We saw productivity improvements throughout the entire production chain from mine to mill and port. In addition, improved uptime and reliability on our crushing and processing plants compounded with exceptional operational efficiencies in the mine saw more quality ore being processed during the month.”
He said, “Support functions in the business including supply, logistics and power systems all worked in sync with the production team to deliver this exceptional performance. Effective cost controls were put in place by the Dry Weather Incident Management Team (IMT) including fuel conservation, contractor management, and rationalisation of critical supplies.”
Mr Ilimbit emphasised that this result underscores the success of the ‘restore, reset, and reinvigorate’ strategy implemented in 2023 to overhaul the business.
“We are continuously looking at transformational strategies to improve overall production efficiency whilst being cost effective. With these foundations, OTML will continue to generate revenue, remain profitable, and deliver to its shareholders and the rest of Papua New Guinea.”
Additionally, OTML continues to meet its environmental, legal, and social obligations.
“Maintaining a positive relationship with the mine impacted communities who give OTML the social license to operate, provides the company with the stability necessary to prioritise production and deliver benefits to its shareholders,” said Mr Ilimbit.
OTML recently declared a final dividend of K350 million to its shareholders, bringing the total dividend for the year 2023 to K450 million. This builds on the initial interim dividend payment of K100 million made earlier in the year.
With the Board’s approval for the Mine Life Extension up to 2050, OTML envisions sustainable growth well into the future. The company is actively pursuing strategic growth projects, aligned with the current Strategic Business Plan, which are progressing successfully and anticipated to generate an impressive K30 billion (US$8 billion) in social benefits which include taxes, royalties, and dividend payments, over the next 27 years.