OZ Minerals Limited
(ASX:OZL) says it has achieved higher than expected production in the June quarter.
Strong mining rates from Malu Open Pit, good contribution from Ankata Underground and high mill availability have combined to yield year-to-date production of 40,363 tonnes of copper and 64,528 ounces of gold.
Oz Minerals says it’s now on track to deliver full year production of 85,000 to 95,000 tonnes of copper, up from previous guidance of 75,000 to 85,000 tonnes. However gold production is expected towards the lower end of the previously announced estimate of 130,000 – 140,000 ounces.
Accelerated mining progress has eaten away at cash over the last six months with reserves dropping from $209 million to $155 million. Further high costs are expected but stronger open pit productivity and lower unit costs are anticipated to yield significant cost savings for the remaining life of the open pit.
Results from the Carrapateena pre-feasibility study are close to completion and will be released when finalised, however no major flaws have been identified.
And drill results from the Bellas Gate exploration project in Jamaica are showing significant copper and gold mineralisation.
Oz Minerals reported a net loss after tax of $294 million for the full year ended December 31, 2013
