Headquartered in Adelaide, OZ Minerals Ltd. is a copper-focused international company. It operates through the following segments: Prominent Hill, Carrapateena, Carajás, Exploration & Development and Corporate. The Prominent Hill segment engages in the mining and processing of high grade underground ore containing copper, gold and silver along with open pit ore from stockpiles. The Carrapateena segment engages in the mining and processing of underground ore containing copper, gold and silver. The Carajás segment engages in the mining and processing of open pit ore containing copper and gold from the Antas mine and developing the Pedra Branca Mine in the Carajás Hub in Brazil.
This morning, OZL shares were the best performer among the ASX-200 equities. The company announced their second quarter results and the market reaction has been extremely positive. Among the highlights were:
- 22% uplift in quarter-on-quarter copper production contributes to a strong first half operating performance
- H1 net revenue of $986 million enables closing cash balance of $134 million (unaudited) and zero debt
- Group copper production guidance on track, gold production increased and cash costs lowered
- Growth projects advancing with key milestones and decision points on track for H2 2021
Managing Director and CEO Andrew Cole said, “A strong second quarter from our major South Australian operations and favourable copper prices saw us finish the half in a robust financial position with a cash balance of $134 million and our corporate debt facility fully repaid from operating cash flow. Full year group copper production guidance remains on track notwithstanding a lowering of annual guidance in the Carajás, Brazil, which has been impacted by direct and flow-on effects of COVID-19. Group C1 cash costs guidance has
been lowered for the year, primarily due to higher by-product credits associated with expected higher gold production at Prominent Hill.”
OZL shares had been slididing recently and it looks like this exceptional result will provide just the right catalyst that OZL share price needs to add some positive momentum. At market close, OZL shares ended the day $23.48 a share, surging 6.53% higher.
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