Bougainville working capital slumps

Press, Volume CXVI, Issue 34100, 12 March 1976, Page 11

Bougainville working capital slumps

I'he working capital of Bougainville Copper, Ltd, fell sAust4s.Bm in the year to December 31. because of strong liquidity pressures, states the chairman (Mr F. F. Espie) in the annual report.

The year was described as one of me most difficult in the company’s short history. As previously announced, group net profit slumped from $114.6m to $46.2m.

not accept full deliveries under copper concentrate sales agreements, but that additional sales were obtained at less favourable

?! terms to replace these re-1 ? ductions. These sales tnt eluded one of about 10,000: - tonnes of concentrale to the ? People’s Republic of China.

from SI 14.6 m to $46.2m, forcing a cut in the dividend rate from 55 per cent to 20 per cent. The .ash and deposits held by the company fell $93.4m to $36.3m. It faces payments totalling $29. Im for dividends and taxation! early this year, as well as ! loan repayments of $19.7m. No new loans were drawn down in 1975, but negotiations were well advanced at the end of the year for two loans totalling SUSISm. and a letter of commitment had. been signed for one loan of. SUSIOm Mr Espie said. Efforts daring 1975 to ob-' tain loan finance to cover the cost of replacing mine haul trucks were unsuccessful. The report confirms that the head grade of Bougain-; ville’s ore is dwindling, as; mining activities are; extended from the centre of t h e pit. Measured ore reserves were reduced from 870 m tonnes to about 840 m tonnes during the year. Average grades declined from 0.47 to! 0.46 per cent for copper, and from 0.53 to 0.51 grams a tonne for gold. File report also confirms that Japanese buyers could