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Oz adjusts output outlook

Oz adjusts output outlook

Photo by Bloombeg

23rd October 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Copper-gold miner Oz Minerals has raised its copper production expectations for the full 2015, as its Prominent Hill mine, in South Australia, delivered another stellar quarter.

Full-year production expectations have now been adjusted to between 126 000 t and 131 000 t, up from the previous estimate of between 110 000 t and 120 000 t.

“Prominent Hill is having a very strong year. The last three quarters have been the strongest in five years and we are now confident that we will exceed our original production target,” said Oz Minerals CEO and MD Andrew Cole.

During the three months to September, the Prominent Hill mine delivered 33 513 t of copper, up from the 32 991 t delivered in the previous quarter, as well as 23 817 oz of gold, which was down slightly from the 24 790 oz delivered in the June quarter.

C1 cash costs for the quarter also declined from the $0.75/lb reported in the June quarter to $0.74/lb.

“The focus on delivering our strategy and being a lean business has helped us push costs down and improve operational reliability, thus maximising the already significant amount of cash being generated by the mine. Production is higher, while the amount of waste being moved is over 40% less than the same period last year,” Cole said.

He noted that while the Prominent Hill mine was exceeding expectations, Oz Minerals was positive that it could deliver greater efficiencies.

“Next year, we plan to be even more ambitious and my senior leadership team has committed to making further savings. As a starting point, all parts of the business will aim to deliver a 15% reduction in overall costs to help secure our place as a reliable and first quartile cost producer.”

Meanwhile, Oz Minerals was also expected to complete a scoping study on its Carrapateena mine by the first quarter of 2016.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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