bcl posts profit in 2006

from today's POST-COURIER Port Moresby PNG :

BCL posts profit in 2006

BOUGAINVILLE Copper Limited has increased its shareholder value by 11 per cent to K378 million last year despite the closure of the Panguna mine.
The company also made a net profit of K3.7 million in 2006 compared to K100,000 in 2005.
Company secretary Paul Coleman reported to the Australian Stock Exchange that during the year, the BCL was able to increase dividend to its shareholders when Panguna mine remained inoperative. He said the increase in divident was due to reduction in expenditure on the taxt dispute.
“The higher dividend of K900,000 is due to reduced expenses as a result of lower expenditure on the tax dispute and a K1.4 million reduction in exchange losses. Accordingly, shareholder value has been increased by 11 per cent to K378 million,” Mr Coleman said.
“The board’s strategic goal of investment portfolio, which generates sufficient cash flow to cover annual operating costs with prospects of a steady capital gain, was recorded in 2006 with capital gains of K34 million being added to shareholders’ funds.”
BCL directors have agreed not to pay shareholders any dividend for last year.
The Panguna mine ceased operation in May, 1989 because of attacks on employees by members of the Bougainville Revolutionary Army. Since the withdrawal of company employees from Bougainville was completed in March 1990, there has been no care and maintenance of company assets. Mr Coleman said there seemed to be an uncertainty on the future of Panguna because of the prolonged closure of the mine.
“Considerable deterioration of the assets has occurred in the intervening period, because of lack of care and maintenance of the company assets.
“However, as access to the mine site has not been possible, the extent of the necessary write-downs is not capable of reliable measurement or estimation,” Mr Coleman said in his report to the ASX.