OZ Minerals says it’s on track to start production at Carrapateena by Q4 2019
OZ MINERALS has lowered capital expenditure guidance for its $916 million Carrapateena copper-gold mine in the state’s far north, but says it remains on track to start production there by the end of next year.
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OZ MINERALS has lowered capital expenditure guidance for its $916 million Carrapateena copper-gold mine in the state’s far north, but says it remains on track to start production there by the end of next year.
Releasing its quarterly report this morning, the Adelaide-based mining company lowered its capital expenditure guidance for the 12 months to December to circa $350 million from earlier estimates of $400-to-$430 million.
OZ Minerals managing director Andrew Cole said construction costs would be pushed back to next year, with no impact on production forecasts.
“Carrapateena construction remains on track with completion of the first raisebore to surface and crusher level development underway,” he said.
“We have again lowered project capital expenditure guidance for 2018 following refinements to the timing of procurement activity, which will result in higher cash outflows in Q1 2019.
“Carrapateena expansion studies continued, with a maiden mineral resource estimate for Fremantle Doctor expected in Q4.”
Copper production at the company’s Prominent Hill mine, 130km southeast of Coober Pedy, is expected to reach the top end of its full-year guidance of 100,000 to 110,000 tonnes.
The mine produced 28,915 tonnes of copper in the third quarter, up from 27,131 tonnes in the previous quarter, and bringing production for the nine months to September to 83,512 tonnes.
“Prominent Hill is expected to achieve the top end of 2018 copper production guidance and the lower end of AISC (all-in sustaining costs) guidance, extending the consistent, reliable performance established over the past four years,” Mr Cole said.
“Growth capital expenditure guidance for 2018 has been lowered, primarily due to a rescheduling of the Malu paste plant works which will now commence in Q4.”
Following its takeover of Brazil-focused Avanco Resources earlier this year, OZ Minerals reported the first production from the Antas mine in Brazil’s Carajas region, which contributed 3004 tonnes of copper and 2458 ounces of gold in the third quarter.
Mr Cole said the company was reviewing drilling and cost estimates across all Brazilian projects to “map out the long-term development pathway”.
The company held a cash balance of $454 million at the end of the September. Its shares were trading 4c, or 0.4 per cent higher, in early morning trade at $9.00.