“Ok Tedi Announces exceptional Q1 Performance” — News — PNG Business News

Ok Tedi Mining Limited (OTML) is pleased to announce its exceptional performance results for Q1 CY2025, showcasing yet another successful quarter of disciplined operational and financial excellence.

OTML is a 100 percent Papua New Guinea (PNG) owned entity with 67 percent direct shareholding by the Independent State of PNG and the people of Western Province holding a 33 percent interest. 100% of the benefits from its operations are distributed to the people of Western Province and the State.

“Our profitability improved significantly in the first quarter compared to a year ago as a result of higher commodity prices and copper sales volumes, we delivered 28,000 copper tonnes, and 74,000 gold ounces and generated revenue of US$460 million (PGK 1.85 billion) demonstrating our focus on disciplined and committed performance and continuous business improvement,” said Kedi Ilimbit, Managing Director and CEO. “We remain committed to our Growth 2050 strategy of balancing value accretive growth with returns to shareholders, and our strong balance sheet and commercial strategy provide us with resilience and the ability to continue to create value amidst market uncertainty.”

With these significant achievements and solid start to the year, we remain committed to deliver to MD & CEO Kedi’s expectation to copy 2024 performance and paste into 2025 and add the extras to meet our full year 2025 guidance, whilst continuing our Growth 2050 strategic path towards ensuring our Vision 2050 is achieved.

Q1 2025 Highlights

• Total Recordable Injury Frequency Rate (TRIFR) was 0.19, and represented a 3% improvement compared to the corresponding period in 2024 of 0.22).
• The Lost Time Injury Frequency Rate (LTIFR) remains the same at 0.00 for 2024 and Q1 of 2025.
• Produced 113.1kt of concentrate, 28,000 tonnes of copper metal and 74,000 ounces of Gold. Production increased by 5% and 7% respectively compared to Q1 2024. This was predominantly due
• higher head grades, stable process and minimal plant upsets.
• Gross revenue of US$ 460 million (PGK 1.85 billion) was 54% higher compared to the corresponding period in 2024. This reflected the favourable metal prices and higher shipment.
• Profit (after tax expense) was USD 176 million (PGK 707 million) or 116% higher compared to the corresponding period in 2024 and benefitted from the higher revenues.
• Royalties paid were USD 8.7 (K34.9) million which was higher than the USD 5.5. million paid in Q1 2024. This reflects relatively higher revenue.
• Taxes paid during the quarter were USD 27.6 million (PGK 110.9 million) compared to USD 20.7 Million (PGK 78 million) in Q1 2024. The increase was mainly attributable salary & wages tax,
• production levy and Good and services tax.
• On track to meet Full Year 2025 guidance, with first quarter results in line with indications provided in March 2025
• Delivered USD 24.9 million (PGK100 million) in total returns to shareholders through Q1 interim dividend payments
• Maintained a strong and flexible investment-grade balance sheet, ending the quarter with USD 69 million (PGK 277.9 million) in cash and USD118 (PGK 477.9) million in total liquidity
  
  Reduced debt by USD 49.7 million (PGK 200 million) since the start of the year, which includes early repayment of overdraft facilities.
• CMCA review progressed smoothly within budget and safely with support from all stakeholders. Second working group meeting that finalises the package is held in Port Moresby to raise the profile and significance of OTML as a nationally owned mining company.

First Quarter 2025 Production, Sales and Financial Summary

Growth 2050 Strategy

OTML is steadfastly pursuing its Growth 2050 strategy, which focuses on long-term sustainability, operational excellence, and community benefits. Key initiatives include:

• Tailings Storage Facility (TSF)
• Engineered Waste Rock Dumps
•  Electrical Haul Truck Drives
•  Pyrite Concentrate (PCon) Pit 4a Construction
• Copper Mark Certification
• Electrification & Energy Transition Strategy
• Accessibility to Diesel & Jet A1 Storage & Supply Facilities in the country
• Mergers & Acquisition opportunities

Ok Tedi’s 2025 Guidance

OTML remains on track to meet its previously budgeted 2025 guidance of:

• 428,000 tonnes of copper concentrate
• Total operating expenditure of USD607 Million (PGK2.4 Billion
• Capital expenditure of USD357 Million (PGK1.4 Billion)
• Revenue generation of USD1.5 Billion (PGK 6 Billion)

OTML’s Managing Director and CEO, Kedi Ilimbit, stated that “Q1 2025 has been built on from the 2024 performance of resilience, collaboration, and achievement for Ok Tedi. These results reaffirm our commitment to creating value for all stakeholders while upholding our responsibilities to the people of Papua New Guinea and future generations. Our focus on sustainable growth under the Growth 2050 framework ensures that we are well-positioned for the challenges and opportunities that lie ahead.”

Mr Ilimbit said, “Our unwavering commitment to responsible mining practices and sustainable development has delivered outstanding outcomes for stakeholders, employees, and the communities in which we operate.”

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