Adelaide-based OZ Minerals (ASX:OZL)
has reported a surge in the copper and gold divisions’ productivity in the mining player’s latest financial update.
The March quarter saw 33 per cent increase year on year in OZ mineral’s copper output, while the company’s gold explorers produced 456 more ounces of gold in the first 3 months of 2021 than the corresponding period in 2020.
The company has factored in exacerbating pandemic circumstances in Brazil as a negative impact on OZ Mineral’s copper production in the country’s Carajás East Hub. However, the firm’s business planners do not recognise the impact is substantial enough to offset the overall guidance for the calendar year.
The newly released data suggest the copper and gold specialist is well on track to meet production guidance for their specialty minerals.
The company has also reported a downside in its balance sheet, citing an expected increase by 20 US cents per pound in sustaining costs for FY21
The company explained, “While cost performance during the quarter has been well controlled, the strengthening of the Australian dollar and weaker gold price is expected to negatively impact comparative unit costs over the course of the year”.
OZ Minerals (AX:OZL) last traded at $24.62