OZ Minerals has reported strong cash position on sound operational performance and a robust market in its latest quarterly release.

In particular, a strong second quarter from the company’s major South Australian operations and favourable copper prices led to a 22% uplift in quarter-on-quarter copper production which contributed to a strong first half operating performance, with H1 net revenue of $986m enabling closing cash balance of $134m (unaudited) and zero debt.

Group copper production guidance was on track, gold production increased and cash costs were lowered.

Grade increased at Carrapateena in line with its mine plan. Prominent Hill continued to reliably increase the level of underground ore mined, with Q2 delivering the highest recorded underground ore mined to date.

Managing Director Andrew Cole said the strong financial position continued to support the pipeline of major brownfield projects at Carrapateena and Prominent Hill and the potential West Musgrave Project currently advancing through the study phase.

“Prominent Hill has continued to sustain annualised rates above 4Mtpa with work continuing at the bottom of the current Life-of-Mine level to establish level infrastructure for the commencement of the bottom-up mining sequence,” he said.

“In line with expectations, copper grade at Carrapateena increased to 1.39% for the quarter. Annual production remains in line with guidance for the full year.

“Availability and reliability of the mining fleet has improved post the transition of the underground mining contractor … initial capital guidance in this area has increased as a result.”

 

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