5 Apr 2007

Highlands Pacific share fall hurts thousands in PNG

10:36 am on 5 April 2007

Thousands of shareholders in Papua New Guinea have been adversely affected by Highland Pacific's plunging share prices, which yesterday hit their lowest level since July 2003, amidst growing concern about its prospects for survival.

The company's share price has slid A$0.05 in the past week to A$0.21, after the company auditors, PriceWaterhouseCoopers, expressed concern about Highland Pacific's capacity to continue as a growing concern.

Severe technical and financial problems at its Kainantu gold mine in the Eastern Highlands in 2006, resulted in a working capital deficiency of US$34.9 million dollars and a total loss of US$63.2 million dollars.

The National newspaper reports major shareholders have been concerned about Highlands performance for some time now.