Prominent Hill. Source: OZ Minerals.
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  • OZ Minerals (OZL) has delivered on 2021 production guidances as its posts a record 2.1 billion in revenue for the FY21 financial year
  • The record revenue was thanks to increased production and a higher copper price, with the company posting a strong cash balance of $215 million (unaudited)
  • Oz expects pandemic challenges to continue into 2022 as it looks to transition to “living with COVID” across the community
  • The group produced 125,486 tonnes of copper in the financial year, within its guidance of 120,000 and 145,000, the seventh year in a row the company met its guidance.
  • OZ Minerals was trading at $25.83 at 11:21 am AEDT, down 1.67 per cent

OZ Minerals (OZL) has delivered on 2021 production guidances as its posts a record 2.1 billion in revenue for the FY21 financial year.

The record revenue was thanks to increased production and a higher copper price, with the company posting a strong cash balance of $215 million (unaudited).

The group produced 125,486 tonnes of copper in the financial year, within its guidance of 120,000 and 145,000, the seventh year in a row the company met its guidance.

OZ Minerals also posted 237,263 tonnes of gold produced, within the guidance of between 220,000 and 243,000 tonnes.

As well as production, costs were within FY21 guidances. All-in sustaining costs were 134.3 US cents/lb and calendar 1 cash costs were 64.2US cents/lbm both within their respective guidance.

“2021 saw OZ Minerals deliver operationally, despite a challenging environment, again achieving Group production and cost guidance, as well as advancing our growth projects at Carrapateena and Prominent Hill and the West Musgrave study,” Andrew Cole, Managing Director and CEO of Oz Minerals said.

“COVID related workforce and supply challenges persisted during the year but elevated during the last quarter as most Australian state borders reopened. We expect these challenges to continue into 2022 as we transition to “living with COVID” across the community. Temporary, short production interruptions are expected, particularly during the first half.”

Mr Cole said the company reduced its annual company Total Recordable Injury Frequency (TRIF) to 3.77 compared with 5.29 in 2020, overshadowed by a fatality in September.

“Our financial position remains strong with a $215 million cash balance at the end of the year and significant liquidity available,” Mr Cole said.

“Our capital management framework provides a strong platform for allocating capital to the right projects and accessing finance, should it be required, to fund our considerable growth pipeline.”

At the conclusion of the quarter, 37,000 tonnes of copper were priced provisionally at $9730 a tonne.

Working capital increased by $62 million during the quarter, with an increase in trade receivables partially offset by a decrease in concentrate inventory due to shipment timing, a decrease in ore inventory from processing activity, and a decrease in trade payables.

As part of the group’s exploration plan, it invested $5 million in Carnaby Resources (CNB) after the quarter ended.

OZ Minerals was trading at $25.83 at 11:21 am AEDT, down 1.67 per cent.

OZL by the numbers
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