OZ Minerals managing director Andrew Cole says he has seen signs the takeover target has recovered from the weak production rates that forced the company’s second guidance downgrade of the year and led to OZ shares briefly dipping below BHP’s offer price on Monday.

The “all in” cost of producing copper at OZ Minerals’ South Australian mines this year will be 28 per cent higher than last year after the company cut its forecast for production volumes of its most important byproduct – gold.