OZ Minerals sets special dividend at $1.75 ahead of BHP takeover vote

OZ Minerals delivered a $207m net profit for 2022, dropping its annual dividend in favour of declaring a $1.75 per share special dividend if shareholders approve its buyout by BHP.

Oz Minerals managing director Andrew Cole. Picture: Kelly Barnes

OZ Minerals delivered a $207m net profit for 2022, dropping its annual dividend from the result in favour of declaring a $1.75 per share special dividend if shareholders approve its buyout by BHP.

The company’s net profit, likely to be its last as a stand-alone company, was 60.9 per cent below the previous year’s result, with revenue down 8.4 per cent to $1.92bn.

The OZ Minerals dividend will be taken off the $28.25 a share offer price from BHP if the takeover is approved by the company’s shareholders in April.

The Australian copper major said it expects to be able to release an independent expert report on the transaction in early March.

Managing director Andrew Cole said the company’s final result reflected a strong finish to the year, after the first half result was badly affected by bad weather, and the Covid-19 pandemic, which put a large number of its staff out of action.

Mr Cole said inflationary pressures had also hit OZ Minerals’ bottom line, with total production costs up $176m for the year.

The company booked earnings before interest, tax, depreciation and amortisation of $693m, down from $1.16bn the previous year.

“The second half demonstrated a much improved production performance through programs implemented to address the disrupted first half, with progressively decreasing Covid absenteeism, a more continuous material flow and increased equipment availability leading to less constrained processing at Carrapateena, and Prominent Hill’s underground operations providing higher copper grades and elevating plant performance,” Mr Cole said.

With its board unanimously recommending the BHP offer, the company said it did not expect to need to hold an annual shareholder meeting in 2023.

OZ Minerals shares closed down 1.5c to $27.96 on Wednesday.