OZ Min swings sharply into red, says it will replace Terry Burgess

OZ Minerals has swung to net full-year loss and said it would appoint a new managing director within 12 months.

OZ Minerals said it would continue to investigate growth opportunities after swinging to a net loss in the 2013 financial year, on the back of lower production and commodity prices.

The board also announced its intention to begin a staged succession planning process, which will see OZ Minerals managing director Terry Burgess replaced within the next twelve months.

For the year to December 31, the miner’s underlying earnings before interest, tax, depreciation and amortisation totalled $115.8 million, down from $353.9 million in the previous year.

The result included asset writedowns on its Prominent Hill operations of $231.9 million after tax.

The group posted an underlying net loss after tax of $62 million, a sharp swing from its $152 million profit in the previous year.

Lower production with peak mining volumes and mining activity costs, along with lower commodity prices, all contributed to the result, OZ Minerals said.

“In 2013 the company continued to investigate growth opportunities in copper while remaining highly disciplined,” OZ Minerals managing director and CEO Terry Burgess said.

“Suitable opportunities will continue to be examined in 2014, with the company considering it has the continued capability to execute on these.”

OZ Minerals will pay a final dividend of 10 cents per share, bringing total dividends for the year to 20 cents per share.

Chairman Neil Hamilton said Mr Burgess will play a vital role in the leadership transition and will remain with the company to help facilitate the process and “ensure a smooth and seamless handover to a new CEO at the right time”.

Mr Burgess said it was “the appropriate time to embark on a well-considered leadership change to capitalise on our encouraging growth prospects.”