OZ announces $405.7 million in profits for year so far

OZ Minerals has posted profits of $405.7 million for the first half of 2010, with the Prominent Hill mine contributing $357.2 million of that in its first six months of operation.

OZ Minerals has posted profits of $405.7 million for the first half of 2010, with the Prominent Hill mine contributing $357.2 million of that in its first six months of operation. 

Prominent Hill’s first six months of full production coincided with buoyant copper and gold commodity prices. 

The company generated $589.9 million in revenue from sales of copper, gold and silver, which contributed $472.7 million, $109.4 million and $7.8 million respectively.

Around $40.8 million of net foreign exchange gains were also recorded, alongside $232.5 million of expenditure.

“This is an outstanding result for a new operation, with the mine and plant performing well and costs constrained to plan,” managing director Terry Burgess said. 

“The Company has also added $356.3 million of cash to its balance sheet during the period, increasing its capacity and flexibility in pursuit of the Company’s growth strategy, whereby we are seeking to acquire another operating or near operating asset.

“The ability to act quickly on good opportunities was demonstrated in our recent acquisition of the interest in Sandfire Resources.”

The company acquired a 19.9% stake in Sandfire for $100 million in July this year.

The miner also spent $24.9 million on exploration in the first-half of year, most of it focussed around the Prominent Hill area. 

 

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.