Oz profits fall as blackout reduces output

PERTH (miningweekly.com) – Copper-gold miner Oz Minerals has reported a fall in underlying net profit for the full year to December, compared with the previous corresponding period, as revenue fell.

Underlying net profit reached A$134-million, compared with A$140-million for 2015.

Oz Minerals on Thursday reported that revenue for the financial year was down from A$879-million to A$823-million, while underlying earnings before interest, taxes, depreciation and amortisation (Ebitda) were down from A$435-million to A$374-million.

The underlying Ebitda was in line with forecast production, but was also impacted by a 15-day power outage at the Prominent Hill mine, in South Australia, following severe storms that caused state-wide blackouts.

The Prominent Hill mine produced 116 882 t of copper and 118 333 oz of gold during the full year.

“The last 12 months has seen the mine life of Prominent Hill extended, production targets lifted, ground broken on one of the largest proposed new copper mines in the world, and a pipeline of exploration earn-in agreements put in place,” said Oz CEO Andrew Cole.

“Strong operating cash flow has generated a significant cash balance with no debt, overall business costs continue to reduce and we have returned more than A$90.5-million to shareholders in the last 12 months.

“Our strategy of capital discipline, lean management and delivering values, is firmly in place. The opportunity in front of us is to entrench Oz Minerals as an agile, innovative, low cost and world-class copper producer,” Cole said.

For the full 2017, Oz Minerals is hoping to produce between 105 000 t and 115 000 t of copper and between 115 000 oz and 125 000 oz of gold.