Latest news with #BougainvilleCopper
ABC News
7 hours ago
- Business
- ABC News
PNG hands over mine ownership to Bougainville
Papua New Guinea's government has transferred its majority shareholding in Bougainville Copper Limited to the government of Bougainville. The transfer includes ownership of Panguna Mine, the massive gold and copper mine that was at the centre of a decade-long civil war. Despite lying dilapidated for the past three decades, deposits beneath the mine are valued at $60 billion. Under the transfer, 53 million dollars worth of shares go to Bougainville to give the government a 73 per cent holding, with the remaining shares in the hands of investors. Gordon Peake, a former advisor to the Autonomous Bougainville Government and author of Unsung Land, Aspiring Nation, said it's questionable if the handover showed Papua New Guinea's commitment to Bougainville's independence path.
RNZ News
19 hours ago
- Business
- RNZ News
PNG hands over majority stakes in BCL to Autonomous Bougainville Government
Panguna open pit copper mine in Bougainville. Photo: 123RF The Papua New Guinea government is preparing to transfer its 36.45 percent ownership in Bougainville Copper Limited (BCL) to the Autonomous Bougainville Government. This transfer, valued at over PGK140.3 million (approx. NZ$56m) at current market rates, is expected to be formally announced by Prime Minister James Marape on Thursday. The transfer includes 146,175,449 ordinary shares in BCL. These shares are currently held by the State through the Department of Treasury and Eda Minerals Limited, a fully-owned subsidiary of Kumul Minerals Holdings. This represents a total of 36.45 percent of BCL's issued capital, in two separate tranches of 19.06 percent and 17.39 percent share respectively. The transfer follows a decision by the National Executive Council for the people of Bougainville to own the shares currently held by the State. This decision also meets a directive from the Joint Supervisory Body (JSB) in its meeting on 12 March 2020 for the State's 36.45 percent shareholding in BCL to be transferred to ABG. "I am pleased to see us making progress in this matter," Marape said. "It is our expressed commitment to transfer the entirety of the 36.45 percent shareholding to the government of Bougainville so the landowners of Panguna and the people of Bougainville can benefit better in the mine." The transfer of shares will result in the ABG and the people of Bougainville assuming ownership of 72.9 percent of BCL's issued capital. This transfer is being carried out at no cost to the ABG. Bougainville Copper Limited is a publicly listed company on the Australian Stock Exchange. Its share price is currently trading at AU$0.39 per share. The current market value of the shares being transferred to the people of Bougainville through ABG is AU$54,742,705. When converted to PNG currency, this is worth PGK140,365,511. Marape commended the ABG leadership of President Ishmael Toroama. He said this is a mutually reached decision on both sides that reflects the work of the two governments.
Yahoo
07-04-2025
- Business
- Yahoo
Here's Why We're Not Too Worried About Bougainville Copper's (ASX:BOC) Cash Burn Situation
There's no doubt that money can be made by owning shares of unprofitable businesses. For example, biotech and mining exploration companies often lose money for years before finding success with a new treatment or mineral discovery. Nonetheless, only a fool would ignore the risk that a loss making company burns through its cash too quickly. So should Bougainville Copper (ASX:BOC) shareholders be worried about its cash burn? In this article, we define cash burn as its annual (negative) free cash flow, which is the amount of money a company spends each year to fund its growth. First, we'll determine its cash runway by comparing its cash burn with its cash reserves. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. A company's cash runway is calculated by dividing its cash hoard by its cash burn. When Bougainville Copper last reported its December 2024 balance sheet in February 2025, it had zero debt and cash worth K21m. In the last year, its cash burn was K14m. Therefore, from December 2024 it had roughly 19 months of cash runway. While that cash runway isn't too concerning, sensible holders would be peering into the distance, and considering what happens if the company runs out of cash. The image below shows how its cash balance has been changing over the last few years. See our latest analysis for Bougainville Copper Whilst it's great to see that Bougainville Copper has already begun generating revenue from operations, last year it only produced K3.4m, so we don't think it is generating significant revenue, at this point. As a result, we think it's a bit early to focus on the revenue growth, so we'll limit ourselves to looking at how the cash burn is changing over time. Over the last year its cash burn actually increased by a very significant 72%. Oftentimes, increased cash burn simply means a company is accelerating its business development, but one should always be mindful that this causes the cash runway to shrink. Of course, we've only taken a quick look at the stock's growth metrics, here. You can take a look at how Bougainville Copper has developed its business over time by checking this visualization of its revenue and earnings history . While Bougainville Copper does have a solid cash runway, its cash burn trajectory may have some shareholders thinking ahead to when the company may need to raise more cash. Generally speaking, a listed business can raise new cash through issuing shares or taking on debt. Many companies end up issuing new shares to fund future growth. By looking at a company's cash burn relative to its market capitalisation, we gain insight on how much shareholders would be diluted if the company needed to raise enough cash to cover another year's cash burn. Since it has a market capitalisation of K328m, Bougainville Copper's K14m in cash burn equates to about 4.2% of its market value. Given that is a rather small percentage, it would probably be really easy for the company to fund another year's growth by issuing some new shares to investors, or even by taking out a loan. Even though its increasing cash burn makes us a little nervous, we are compelled to mention that we thought Bougainville Copper's cash burn relative to its market cap was relatively promising. While we're the kind of investors who are always a bit concerned about the risks involved with cash burning companies, the metrics we have discussed in this article leave us relatively comfortable about Bougainville Copper's situation. On another note, Bougainville Copper has 3 warning signs (and 2 which shouldn't be ignored) we think you should know about. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies with significant insider holdings, and this list of stocks growth stocks (according to analyst forecasts) Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
