BASE METALS

Solid quarter for Oz copper and gold miner

Growing copper and gold miner OZ Minerals has delivered a solid quarter of production from Prominent Hill in South Australia and started looking at future expansion opportunities for its nearby Carrapateena development.

Staff reporter
Another solid quarter from Prominent Hill in South Australia

Another solid quarter from Prominent Hill in South Australia

OZ managing director Andrew Cole pointed out the company was only targeting 84 million tonnes of the total 800Mt resource at Carrapateena, with future expansion opportunities potentially incorporating, for example, block caving and development of a shaft.

In addition the nearby Fremantle Doctor and Khamsin deposits could figure prominently in an expanded scenario with the latter returning a hit last quarter of more than 400m grading 1.55% copper equivalent.

According to Cole, grade and "access to the grade" will be key considerations in the studies.

OZ has committed further funding of A$5 million to the preliminary expansion studies.

Carrapateena in its current guise will produce an average of 65,000t of copper and 67,000 ounces of gold per annum at all-in-sustaining-costs of US99c per pound, with first production slated for the end of next year.

Meanwhile, Prominent Hill delivered "to plan on all production and cost guidance", with 27,131t of copper and 30,873oz of gold produced at cash costs of 72c per pound.

OZ retains a cash balance of A$454 million, after outlaying $201 million to shareholders of Brazil takeover target Avanco, as well as spending $78 million on Carrapateena and paying $100 million tax.

Regarding Avanco, Cole said a strategy workshop involving management of both companies would be held at the end of the month.

Shares in OZ were up 1.7% to A$9.15 in early trade, capitalising the company at $2.95 billion.

The stock hit a 12-month high of $10.70 in June and was at levels around $7.50 a year ago.

 

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.