PERTH (miningweekly.com) – Copper/gold miner Oz Minerals has increased its gold production guidance for the full year, and has lowered its expected C1 cash costs on the back of a solid third quarter.

The miner on Thursday increased its gold production expectation to between 242 000 oz and 259 000 oz for the full year, up from the previous estimate of between 227 000 oz and 249 000 oz.

Copper production guidance for the full year has been maintained at between 88 000 t and 105 000 t.

Meanwhile, C1 cash cost estimates for the full year have been lowered from between 10c/lb and 25c/lb, to between 0c/lb and 15c/lb. All-in sustaining costs expectations have also dropped from the previous estimate of between 70c/lb and 85c/lb, to between 60c/lb and 75c/lb.

“The third quarter saw a solid production performance from our assets and progress milestones achieved on our growth projects. Annual gold production guidance has been increased as a result of continued strong grade performance and recoveries at Prominent Hill and annual cost guidance has been further reduced on the back of continuing strong gold prices and maintained cost performance,” said MD and CEO Andrew Cole.

Copper production during the three months to September decreased slightly from the 24 577 t reported in the June quarter, to 23 873 t, while gold production decreased from 68 740 oz to 66 746 oz.

Prominent Hill delivered 14 891 t of copper and 51 629 oz of gold during the quarter under review, while the Carrapateena operation produced 7 063 t of copper and 13 760 oz of gold. Carajas contributed 6 417 t of copper and 4 465 oz of gold in the three months under review.

“Critical and growth projects have been completed including the 270 km Prominent Hill power transmission line, consolidation of our ownership of West Musgrave and safe resumption of exploration drilling. We’ve also advanced a number of our growth options with updates to come in this final quarter on Prominent Hill expansion and the West Musgrave project,” Cole told shareholders on Thursday.

“The quarter saw underground ore movement records at both Prominent Hill and Carrapateena, with further all-in sustaining costs and C1 cost guidance reductions assisted by an increase in the assumed 2020 full year gold price to $1 758/oz and favourable exchange rates.

“The ramp-up at Carrapateena has continued to deliver to revised ramp-up targets with underground ore movement exceeding 4.25-million tonnes a year rate for 22 days during the quarter providing further confidence in achieving steady state operations by the end of the year, some six months earlier than originally anticipated.

“A contract for construction of the Western access road was awarded in September while growth capex guidance has been revised downwards with the timing of some spend now scheduled for early in 2021. Stage 1 of the block cave expansion feasibility study continues with completion expected late 2021.”

During the quarter under review, Oz Minerals also completed the acquisition of Cassini Resources, giving Oz Minerals full ownership of the West Musgrave project and flexibility on future funding and development options.