OZ posted a 2017 net profit after tax of A$231 million, up 114%, after revenue jumped by 24% to $1.02 billion.
Underlying earnings before interest, tax, depreciation and amortisation rose by 44% to $539 million, with an EBITDA margin of 53%.
The results were close to Deutsche Bank’s estimates of $513 million EBITDA and $230 million NPAT.
Net cash generation from the Prominent Hill copper-gold mine in South Australia was $133 million.
OZ declared a fully franked final dividend of 14c per share, taking 2017’s total payout to 20c per share.
The company was debt-free and had cash of $729 million at the end of December.
OZ managing director and CEO Andrew Cole said new chief financial officer Warwick Ransom would undertake a review of the company’s capital management strategy.
On an investor call, Global Mining Research analyst David Radcliffe questioned the company’s “lazy” balance sheet.
Cole said OZ had maintained a strong balance sheet for several years and no one would have described the balance sheet as lazy three years ago.
“Lazy I think is a sentiment that goes with the time but not necessarily something you have to address,” he said.
OZ spent $117 million on the development of the Carrapateena project during the year and will spend around $500 million this year.
Cole said the goal was for OZ to be a three-mine producer within five years, with the West Musgrave project with Cassini Resources likely to be the third.
“Based on where it sits now … we’re very optimistic that’s eventually going to become a mine,” he said.
On growth more broadly, Cole said the company wasn’t just seeking new copper projects, but rather new “copper-rich provinces”.
“A launching platform, or a hub, for broader opportunities,” he said.
At Carrapateena, the company is looking at developments at Khamsin, Fremantle Doctor and Punt Hill.
OZ will spend $8-10 million this year studying the potential Carrapateena province expansion.
The company will spend $20-30 million on the West Musgrave project.
Shares in OZ jumped by 5.4% to $9.395, valuing the company at $2.6 billion.