South Australia’s newest major mine, OZ Minerals’ Carrapateena project, is expected to start exporting copper in November
OZ Minerals’ development of the Carrapateena underground mine in South Australia is about to bear fruit, after years of work.
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OZ Minerals has stockpiled more than 100,000 tonnes of ore at its Carrapateena project which is expected to ship its first product in November.
The $920-$950 million copper and gold mine in the state’s Far North will be the second major mine for OZ in South Australia, with the Prominent Hill mine this year on track to produce 103-1155000 tonnes of copper.
OZ reported a half year net profit of $44 million, down from $127.8 million, saying the result was adversely affected by the timing of product sales.
Revenue of $419.2 million was 20.9 per cent lower at $419.2 million.
Managing director Andrew Cole said it was a solid half year.
“Our solid cash generation continued through the start of the year, but profit was impacted by lower revenue given shipment timing aligned to first half market dynamics and additional growth investment,’’ he said.
“Pleasingly, we have already seen revenue rebound strongly in the second half and all 2019 production tonnes are committed.
“Our cash balance combined with a solid operating performance from Prominent Hill has allowed us to implement our growth strategy and transition to multiple operations whilst consistently rewarding shareholders.’’
OZ will pay a fully franked interim dividend of 8c per share, equal to the first half last year.
The Adelaide company said it was continuing to work on its West Musgrave project in Western Australia, and the prefeasibility study for that was expected in early 2020.
“The review of our Brazilian assets, including updated mineral resource and ore reserve statements, was completed last month, with a low risk, modest capital processing hub strategy developed to realise value in the Carajás and Gurupi provinces.
“Exploration is an important element of our growth strategy and our pipeline grew with earn-in agreements established in the Carrapateena province and Sweden, as well as a dedicated joint venture established to progress the Jericho project in Queensland,’’ Mr Cole said.
OZ Minerals shares were 4.5 per cent higher at $9.32.