OZ Minerals Limited (ASX:OZL) has forecast the copper price will bounce back to record highs because of a supply shortage.
Speaking at the company’s annual general meeting yesterday CEO Terry Burgess said he believes there will be a shortage of copper this year and next.
Chairman Neil Hamilton said prices for the company’s commodities were at record average levels last year and OZ continues to see a tight market for copper and a positive long term outlook.
Last year the average copper price was $US4.00 per pound and the average gold price was $US1,572 per ounce.
Mr Hamilton also confirmed the company is on the look-out for value-adding acquisitions
The company expects to deliver copper production of between 100,000 and 110,000 tonnes and gold production of between 130,000 and 150,000 ounces in the 2012 financial year.
Shares in OZ Minerals gained 2.34 per cent yesterday, closing at $8.31.
OZ Minerals booked a net profit of $274.5 million in the full 2011 financial year.
