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Oz faces H1 losses

14th August 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed Oz Minerals on Wednesday reported a net loss after tax of A$268-million for the six months to June, as production decreased and the miner faced A$231.9-million in write-downs.

The net loss for the six months under review compared with a net profit of A$119.5-million in the previous corresponding period.

Revenue for the half-year under review was also down to A$316.2-million, compared with the A$514.8-million achieved in the first half of 2012, while underlying earnings before interest, tax, depreciation and amortization were down to A$50-million, compared with the A$231.3-million reported in the previous corresponding period.

Oz had previously lowered its gold production forecast for the full year to between 120 000 oz and 130 000 oz, while copper production for the full year was expected to be between 82 000 t and 88 000 t.

“2013 is the peak year of waste stripping at Prominent Hill, in line with our mine plan, and production has been lower as expected. When combined with lower commodity prices, we have seen lower revenues, and so earnings, in the first half,” said company MD and CEO Terry Burgess.

He noted that Oz Minerals expected to see increased productivity from the mining equipment in the openpit mine, which would lead to higher material movement and lower unit costs during the second half of the year.

“Together with access to higher-grade sections of the openpit orebody and continued solid performance from Ankata, copper production should be higher in the second half, in line with previous guidance for the year.”

Burgess added that Oz Minerals also continued to pursue growth in its mining capacity, with ongoing work investigating the potential of the Malu underground operation. The company also launched a prefeasibility study to investigate the potential of its Carrapateena operation.

Edited by Creamer Media Reporter

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