PERTH (miningweekly.com) - Copper miner Oz Minerals on Wednesday reported that profits for the full 12 months of 2012 slumped to A$152-million, compared with the A$265.3-million reported in 2011.

Total revenue for the period was down to A$985.7-million, compared with the A$1.1-billion reported in the previous financial year, as copper prices and demand reduced, while Oz also reported higher costs owing to increased material movement and the depth of ore.

The miner previously reported that full-year production reached 101 737 t of copper and 140 746 oz of gold, which was at the lower end of the 100 000 t to 110 000 t of copper and 130 000 oz to 150 000 oz of gold guidance for the year.

Oz predicted that 2013 would be a transitional year for the company, as it built on future production from its Prominent Hill operation, in South Australia.

MD and CEO Terry Burgess noted that during the full 2012 financial year, Oz saw several significant milestones achieved, with production and cost guidance met at Prominent Hill.

“Successful drilling programmes across the group during 2012 have led to the 2.9-million increase in ore reserves at the Prominent Hill Ankata underground mine, effectively increasing its life by two years,” Burgess added.

He noted that a focused infill exploration drilling programme at Carrapateena also led to a 43% increase in mineral resources, and provided the company with the confidence to fast-track exploration activities through the construction of an exploration decline allowing for further geotechnical testing.

The miner also announced a regional discovery at the Khamsin prospect, some 10 km north-west of Carrapateena.

“In 2013, we will focus on resource drilling in the Malu underground and drill testing of targets at Carrapateena,” said Burgess.

“2013 is a transitional year for Oz Minerals as we build a foundation for future production from Prominent Hill with the peak year of waste removal from the Malu openpit and the development of the Malu underground mine set with the objective of first stoping ore in 2014.”

Looking ahead, the miner expected to produce between 90 000 t and 95 000 t of copper during 2013, and between 130 000 oz and 150 000 oz of gold.