Presenting its annual results, BCL chairman Mel Togolo said company expenditure during 2022 continued to be concentrated on tenure issues, stakeholder engagement, and support for the company's small-scale community projects.
Togolo said that BCL had total consolidated net assets of K98 million compared to K128 million the previous year. The company has sufficient funds to cover planned recurrent expenditure in 2023 and remains debt free.
BCL's financial assets are cash and Australian equities. Income from interest and dividends was K4 million in 2022 compared to K4.1 million the previous year.
The fair valuation of the company's investments however decreased by K22.7 million for 2022 compared to an increase of K12.9 million the previous year. The company's investments in Australian listed securities decreased amid volatility in global share markets influenced by rising inflation, rising interest rates, Covid-19 related supply chain disruptions, and the war in Ukraine.
There were realised gains on sales of investments for the year of K3.9 million. Equities are only sold when necessary to help fund ongoing company operations.
"The redevelopment of Panguna continues to feature prominently in Bougainville's narrative around economic advancement. There is also agreement between the Autonomous Bougainville Government and landowners that future redevelopment should be led by a locally owned, Bougainvillean company. In this context, we believe Bougainville Copper is well-placed to help drive these objectives," Togolo said.
"To emphasise our company's local credentials, it is important to note that for the first time in BCL's 55-year history, the company is set to be majority owned by the government and people of Bougainville. The PNG national government remains committed to transferring its 36.4% share in the company, free of any charges, to the ABG and people of Bougainville. In addition to the 36.4% share the ABG already owns this will bring the Bougainvillean shareholding in BCL to 72.8%," he said.
The full report appears on the company's website.