KFM Weekly Investment Update: Friday, 28 April 2017
Local Market Summary
• Papua New Guinea’s 9th Parliament Election is now formally underway with writs signing on the 20th April 2017 by the Governor-General his Excellence Bob Dadae. This has now pave way for candidates to be nominated in their respective electorate or province around the country. There has been a lot of nominations for candidate which transpired right across the country and it ended on 27th April 2017
• PNGFA’s Policy and Aid Coordination Mr Dambis Kaip said at a recent wood processing workshop in Port Moresby that PNGFA is looking at processing 100% of PNG’s forest products in the country. He further stressed that PNGFA has proven in small scale to process 100% of the forest products in PNG. This has taken the forestry sector less than three years to meet the government’s target of 100% processing in the country. The government made the decision in the 2010 medium-term development policy that they wanted all timber to be processed 100% locally
• Trade, Commerce and Industry secretary John Andrias announced during the opening of the Pacific Island Forum World Trade Organisation workshop in Port Moresby that fisheries was an important sector to the economy and the PNG Fisheries sector will not be affected by the current economic status of the country. He further advised that fisheries is an important source of food as people are becoming more health-conscious
• More than 30% of the direct equity in the Ok Tedi Mine Ltd will be transferred by the government to the landowners of Western. This was formalised in the signing of the Head of Agreement by the Department of Petroleum and Energy on behalf of the State and landowner representatives. Those who will share the 33% equity included landowners from the mine villages, Community Mine Continuation Agreement region and the Western government. The government also approved the signing of the equity benefit sharing memorandum of agreement which provides the framework on how the proceeds of dividend payments will be applied
• According to Newcrest Mining first quarter report for 2017, the company’s gold production was slightly low compared to the previous quarter. The report stated that production from Australia were low due works in Panel Cave 2 in Cadia and heavy rainfall in January at Telfer. Lihir gold production was up by 1 % with sustaining cost dropped US$61.0 (K144.0) per ounce to US$822.0 (K1,953.0) per ounce for the March quarter as a result of high production volume. The company reported that Wafi-Golpu joint venture parties were progressing well.
• The Country Manager for Puma Energy Jim Collings said a recent fuel spill at Kanudi terminal in Port Moresby has been contained. He said emergency response team including international advisors was deployed and the spills was contained and cleaned up. He added that work will continue to ensure the shore gets cleaned
• ANZ PNG launched the new credit cards with security chip in Port Moresby this week. ANZ PNG CEO Mark Baker stated that the added security provides security for people to conduct their transactions safely. He reiterated that the new product aligns to world security standards and are available to all customers in the country
• This week’s BPNG auctions in Central Bank Bills were offered for 28 days with an over-subscription of K6.0m out of a total of K653.5m on offer. The weighted average yield remained at 1.22% from the previous week
• This week’s BPNG auctions in Treasury Bills were under-subscribed by K62.9m out of a total of K202.7m on offer. Weighted average yields for 182 days and 364 days were 4.73% and 7.82% respectively
• The KSi Index increased by 4.1% to close at 5,131.78 points and the KSi Home Index also increased by 0.2% to conclude the week at 11,093.62 points, reflecting an increase in share price of BSP by 0.2%
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KFM Weekly Investment Update: Friday, 28th April 2017