Oz Minerals lifts copper production forecast

PERTH (miningweekly.com) – Copper/gold miner Oz Minerals has flagged a 30 000 t increase in copper production over the next two years, but gold production is will be lower than previously thought.

The miner on Monday maintained its copper output guidance for 2017 at between 105 000 t and 115 000 t, but increased its guidance for 2018 and 2019 to between 90 000 t and 100 000 t each.

This is up from the previous guidance of 85 000 t to 95 000 t for 2018, and 65 000 t to 75 000 t for 2019.

Meanwhile, gold production expectations have declined from the previous estimate of between 125 000 oz and 135 000 oz of gold during 2017, to between 115 000 oz and 125 000 oz.

For the longer term, gold production expectations have declined from the previous 140 000 oz to 150 000 oz targeted in 2018 and 150 000 oz and 160 000 oz in 2019, to between 120 000 oz and 130 000 oz for both years.

Meanwhile, Oz Minerals on Monday reported that copper production for the December quarter had increased slightly to 29 758 t, from 28 756 t in the previous quarter. Gold production increased to 32 205 oz, from 28 466 oz in the September quarter.

“The actions we’ve taken in the last 12 months in executing our strategy have positioned us strongly for the year ahead and beyond,” said CEO Andrew Cole.

“Prominent Hill demonstrated its operating discipline delivering on copper guidance in the face of a major state-wide power outage, which resulted in 15 days of lost production during the second half of 2016.”

In addition to meeting production targets, Oz Minerals also extended the mine life of Prominent Hill following a 40% increase in the project’s underground reserve. The project’s life has now been extended to 2028.