The company’s cash balance rose over the September quarter from A$625 million to $639 million after $12 million of investment into Carrapateena, ore inventory of $17 million, interim dividend payments of $18 million, and an increase in receivables of $53 million.
The Prominent Hill mine had its best quarter of copper production for the year, delivering 28,880 tonnes at C1 costs of US91c per pound, as well as 29,264 ounces of gold.
All-in sustaining costs were $1.36/lb.
“It’s been a busy year for OZ Minerals and this quarter has certainly been no different,” managing director and CEO Andrew Cole told analysts this morning.
The company announced an accelerated mining and closure plan for the Prominent Hill open pit, bringing forward the end of the pit to the March quarter of next year.
OZ estimates that will result in savings of A$10 million, and reduced its open pit unit mining cost guidance to $7-7.25 per tonne from $7.25-7.75/t.
The Prominent Hill underground performed strongly with production up by 15% and unit costs down by 21% over the quarter.
OZ maintained 2017 guidance of 105,000-115,000t of copper and 115,000-125,000oz of gold at C1 costs of 85-95c/lb of copper.
Following approval of the A$916 million Carrapateena project in August, OZ has ordered long-lead items and finalised contracts, while decline development reached 3017m.
The company is also advancing studies on Cassini Resources’ West Musgrave project, with Cole saying that metallurgical work had confirmed that separate payable copper and nickel concentrates could be produced at “reasonable” recoveries.
Cole said the project looked “promising” ahead of OZ’s decision this quarter on whether to move to a prefeasibility study.
A number of OZ’s earlier stage projects will be drilled this quarter.
OZ and partner Minotaur said today that they had committed to a collaborative diamond drill campaign 22km from Prominent Hill, with four holes to be drilled into shallow bedrock conductors.
Shares in OZ rose by 2.2% to $8.23, the highest level in a month.
