In a groundbreaking achievement, Papua New Guinea's Ok Tedi Mining Limited (OTML) has set a new record by generating an unprecedented K684 million (USD$184 million) in revenue for the month of December 2023. This marks the highest monthly revenue recorded throughout the entire year.
The remarkable financial success is attributed to a combination of factors, including increased production levels, favorable metals prices exceeding budget expectations, and strategic business improvements. Other key contributors to this milestone are operational efficiency, meticulous cost management, and the seamless shipment of copper to buyers without interruptions.
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| Record-Breaking Revenue Achieved by PNG's OK Tedi Mining Limited in December 2023 [Photo by OTML] |
During December, OTML produced a substantial 45,000 dry metric tons (Kdmt) of Copper Concentrate, resulting in sales of USD$107 million (K398 million). Gold contributed USD$75 million (K278 million), and Silver added USD$2.4 million (K8.9 million) to the overall revenue.
Kedi Ilimbit, OTML's Managing Director and Chief Executive Officer, expressed satisfaction with the outstanding performance. He highlighted the positive impact of productivity improvements across the entire production chain, from mining to processing plants and port operations. Improved uptime and reliability in crushing and processing plants, coupled with operational efficiencies in the mine, led to the processing of higher-quality ore throughout the month.
Mr. Ilimbit emphasized the collaborative efforts of support functions, including supply, logistics, and power systems, which synchronized seamlessly with the production team. The Dry Weather Incident Management Team (IMT) played a crucial role in implementing effective cost controls, such as fuel conservation, contractor management, and the rationalization of critical supplies.
This remarkable financial outcome, according to Mr. Ilimbit, underscores the success of the 'restore, reset, and reinvigorate' strategy implemented in 2023 to overhaul the business. He stated, “We are continuously looking at transformational strategies to improve overall production efficiency whilst being cost-effective."
OTML continues to fulfill its environmental, legal, and social obligations, maintaining positive relationships with mine-impacted communities that grant the company the social license to operate.
In a move to reward shareholders, OTML recently declared a final dividend of K350 million, bringing the total dividend for 2023 to K450 million, complementing the initial interim dividend payment of K100 million earlier in the year.
With the Board's approval for the Mine Life Extension up to 2050, OTML anticipates sustainable growth well into the future. The company is actively pursuing strategic growth projects aligned with the current Strategic Business Plan, expected to generate an impressive K30 billion (US$8 billion) in social benefits over the next 27 years. These benefits include taxes, royalties, and dividend payments, further solidifying OTML's commitment to its shareholders and Papua New Guinea.
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