The West

OZ stays course despite production slide
OZ stays course despite production slide

Oz Minerals says it remains on track to meet its full-year guidance despite posting a fall in copper and gold production during the September quarter.

The miner's original full-year guidance at its Prominent Hill mine, in South Australia, was for 100,000 to 110,000 tonnes of copper and 130,000 to 150,000 ounces of gold.

Oz Minerals said it had produced 25,738 tonnes of copper, a 5.7 per cent drop on the previous corresponding period, and 35,111 ounces of gold, a 2.6 per cent fall in the three months to the end of September.

But ore grades had been slightly lower, the company said in a statement.

Copper production for the first nine months of the current calendar year had been 3.1 per cent lower at 78,441 tonnes while gold output for the year to date was down 11.2 per cent down at 108,473 ounces.

Cash costs for the quarter had risen 64 per cent to $1.18 a tonne, with higher mining costs an impact, Oz Minerals said.

Exploration beneath the open pit had re-started at Prominent Hill which, the company said, was exciting as it could extend its life by up to three years.

The company has been under pressure to acquire another mine before Prominent Hill expires - expected in 2018 - and its replacement Carrapateena copper and gold project is in production.

Oz Minerals shares were up 32 cents, or 3.86 per cent, to $8.61 at 8.25am with mining stocks performing strongly on this morning.

The West Australian

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