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Oz Minerals profit jumps 59%, completes review of new Brazil assets

16th August 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Copper/gold miner Oz Minerals has reported a 59% increase in net profit after tax for the interim period ended June, with underlying earnings before interest, tax, deprecation and amortisation (Ebitda) increasing by 33%.

Net profit after tax for the six months to June was reported at A$128-million, with underlying Ebitda was reported at A$290-million.


Oz Minerals CEO Andrew Cole said the results were boosted by higher copper prices, ongoing operational efficiencies and a continued focus on cost.

Net revenue for the first half was 19% higher than the comparative period, at A$530-million, driven by an 18% increase in the average copper price. Oz Minerals told shareholders that this was partially offset by a 3% decrease in the average gold price.

“Our revised capital management strategy takes into consideration our broader asset base and a healthy project pipeline, as well as the expectations of our shareholders. It recognises the importance of shareholder returns as we allocate capital to grow,” Cole said.

Oz Minerals on Thursday declared a fully franked interim dividend of 8c a share, reflecting the ongoing strong financial performance.

“Our growth pathway is now more assured with a range of assets in various stages of development,” said Cole.

“Prominent Hill production is supported by a new operating mine in Antas, which is currently undergoing an optimisation review. Carrapateena construction is on track for first concentrate production in the fourth quarter of 2019, and a progressive stream of projects will potentially advance to construction in the coming years, including West Musgrave in Western Australia, and Pedra Branca and CentroGold in Brazil.”

Cole said that having undertaken an intensive review of the newly acquired Brazilian assets, following the takeover of fellow-listed Avanco, Oz Minerals has now developed an optimsation plan based on project value and maturity.

“Further reviews, drilling and detailed costing is required to finalise the scopes and metrics of various studies, but the development pathway enables us to progress sequential works across the new portfolio to manage workload, expenditure and effective implementation of each stage.”

Cole said that an upgraded feasibility study scope for the Pedra Branca project would incorporate a potential 30% increase in throughput to 1.6-million tonnes a year, and is expected to be complete late in the first half of 2019, followed closely by a decision to mine.

Further drilling to increase resource confidence is also planned for the CentroGold project, with an update on the optimised prefeasibility study expected in the first quarter of 2019.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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