https://www.miningweekly.com
Copper|Environment|Financial|Gold|Health|Logistics|PROJECT|Projects|Safety|Underground|Drilling
Copper|Environment|Financial|Gold|Health|Logistics|PROJECT|Projects|Safety|Underground|Drilling
copper|environment|financial|gold|health|logistics|project|projects|safety|underground|drilling

Oz Minerals adjusts gold outlook

20th October 2021

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

Font size: - +

PERTH (miningweekly.com) – Copper/gold miner Oz Minerals has increased its gold production expectations for the 2021 financial year, following a strong third quarter.

The miner reported copper production of 33 794 t, up from the 32 681 t reported in the previous quarter, while gold production increased from 57 875 oz to 65 932 oz in the same period.

“A positive third quarter from a group production and cost perspective was overshadowed by the fatal injury of one of our Prominent Hill mine team members, a Byrnecut underground employee, in September,” said Oz Minerals MD and CEO Andrew Cole.

“We are deeply saddened by this tragic event and we share our condolences with his family and friends. We and Byrnecut are conducting our own investigation in parallel with investigations being conducted by authorities. Safety at the site and the wellbeing of all our workforce remains a priority,” he noted.

Cole on Wednesday said that full year group copper production was tracking in line to achieve guidance, with Prominent Hill copper and gold production and Carrapateena gold production expected to be at the top end of the updated guided range, while Carrapateena copper production is likely to be at the lower end of its range as the company drew from lower grade areas during the third quarter to encourage cave propagation.

“We have now returned to drawing from higher grade areas and still expect to trend towards reserve grade over the coming quarters. Pleasingly, plant performance continues to improve with production rates of 5.3-million tonnes a year achieved during September, demonstrating that higher throughput rates planned can be achieved.”

Copper production expectations for the full 2021 have remained at between 120 000 t and 145 000 t, while gold production is expected to reach between 220 000 oz and 243 000 oz, up from the previous estimate of between 205 000 oz and 228 000 oz.

All-in sustaining cost expectations for the full year have dropped to between 125c/lb and 140c/lb, from the previous estimate of between 130c/lb and 145c/lb.

“Prominent Hill copper and gold production remains strong with continued higher-than-expected gold grade in stockpiles resulting in a further increase to annual gold production guidance. With the Wira shaft mine expansion approved during the quarter, the project team has quickly moved to awarding critical work packages. Approximately one-quarter of the capital budget has already been awarded allowing a significant portion of the budget to be locked in. The contract for the sinking of the Wira shaft has been awarded to the Byrnecut Group,” Cole said.

Meanwhile, he noted that Covid-19 outbreaks in the eastern states of Australia have led Oz Minerals to limit the movement of people from these areas to all but critical specialist workers.

“Limiting movement is focused on reducing the health risk to our workforce and the community, and requires some additional administrative and logistics management. With the Covid environment in Australia remaining dynamic, as states prepare for border openings and restrictions to be eased, we will continue to carefully monitor and review our processes.

“At the Carajás East Hub, a significant milestone was achieved with the commencement of processing production ore from Pedra Branca, the first of our satellite mines to be realised under the Hub Strategy. The team in Brazil has now taken Pedra Branca from a concept study to being permitted, built and into production within three years.

“A maiden mineral resource at Santa Lúcia was released during the quarter and is a further step in progressing our Brazil hub strategy. The team is now advancing a project study, assessing the viability of the Santa Lúcia run-of-mine ore being processed concurrently with Pedra Branca ore at the central Carajás East Hub processing facility.”

Cole noted that the company also continued to advance its growth pipeline projects with a drilling programme commencing at the Succoth copper deposit.

Succoth has a published Inferred mineral resource totaling 156-million tonnes at 0.60% copper, which was not factored into the West Musgrave prefeasibility study update and can potentially add upside in mine life or production rate to the West Musgrave province.

“The West Musgrave team continues to progress the final study phase, with many aspects of the project well advanced and technically de-risked. With project activity advancing and commencement of the Succoth drilling programme earlier than anticipated, 2021 project studies cost guidance has been adjusted by A$30-million. Overall, we continue to gain confidence in the project. We are also taking the opportunity to consider opportunities to further advance our company aspirations and create additional stakeholder value prior to a potential final investment decision in the second half of 2022.

“Our financial position remains strong with A$188-million cash balance at the end of the quarter and significant liquidity available. Our capital management framework provides a strong platform for allocating capital to the right projects and accessing finance, should it be required, to fund our considerable growth pipeline,” said Cole.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
Rittal
Rittal

Rittal is a world leading provider of top-quality integrated systems for enclosures, power distribution, climate control, IT infrastructure and...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.095 0.128s - 92pq - 2rq
Subscribe Now