• Net loss after tax was K13.398 million, compared with K7.357 million in the prior corresponding period.
  • Net Assets were K63.436 million, down from K79.459 million, and no Dividend was declared.
  • The auditor's review conclusion is qualified over the valuation of a K1.1 million investment, with an emphasis of matter on uncertainty over the company's rights to the Panguna assets.

Bougainville Copper Limited (ASX:BOC) lodged its half-year report and accounts for the six months ended 30 June 2026 on 14 October 2026. The report shows a net loss after tax of K13.398 million, compared with K7.357 million in the prior corresponding period, and a review conclusion from its new auditor that is qualified on one matter. Amounts are in Papua New Guinea kina unless stated.

Financial result

Dividends and interest income was K1.552 million, compared with K1.417 million a year earlier. General and administration expenses rose to K14.873 million from K8.645 million. The company attributes the higher costs to a one-off contract termination fee of AUD 1.0 million, equivalent to PGK 3.034 million, together with higher staffing and administration costs. Net loss after tax rose by 82.1 per cent. Basic loss per share was 3.34 toea, compared with 1.83 toea. The company also presents the net loss as AUD 4.372 million, against AUD 2.841 million.

Net assets were K63.436 million, down from K79.459 million, and net Tangible Asset backing was K0.158 per share, down from K0.198. The company says its ASX-listed investments fell by K9.0 million in value during the period, and that it sold K12.0 million of investments. Cash at period end was K1.554 million, compared with K1.236 million, and no dividend was declared. No borrowings were outstanding at 30 June 2026.

Funding

The report does not include an explicit Going Concern statement. On funding, it says the company will realise further investments in the second half of 2026 to fund ongoing operations.

Auditor conclusion

The review was conducted by PKF KTK, which replaced KPMG as auditor with effect from 11 August 2026. The auditor's review conclusion is qualified because it could not satisfy itself about the valuation of a K1.1 million Investment in the Pacific Balanced Fund. Apart from that matter, nothing came to the auditor's attention suggesting the report was not prepared in accordance with IAS 34. The auditor also included an emphasis of matter on uncertainty over the company's rights to the Panguna assets, and states that its conclusion is not qualified in respect of that matter.

Panguna licence position

The report says that on 16 June 2026 the Department of Mining and Petroleum advised that the company's EL01 rights are suspended and subordinated to LSML-01, a licence granted to Bougainville Minerals Limited. The board established an Independent Board Committee on 27 July 2026, which reported its findings on 9 September 2026. The company says it is obtaining further legal advice before deciding on further action. The report adds that the partnering process ended after the Autonomous Bougainville Government chose LMEL as its preferred partner on 4 February 2026.

Other governance and legal points in the directors' report include that the Autonomous Bougainville Government holds 72.9 per cent of the shares following a transfer finalised on 14 January 2026, and that Sir Melchior Togolo became chief executive on 21 May 2026. The National Court dismissed a class action on 26 September 2025, and the lead claimant appealed to the Supreme Court on 3 November 2025. The report says legacy remediation at Panguna is continuing with the Autonomous Bougainville Government and Rio Tinto.