OZ chief warns against repeating mistakes

The new OZ Minerals chief executive said the company must be careful not to repeat past financial mistakes.

OZ Minerals must be careful not to repeat past mistakes that saw it have to sell off most of its assets, new chief executive Terry Burgess said.

The company currently has a cash balance of around $1 billion after selling most of its assets to China’s Minmetals.

The reaming asset in OZ Minerals’ portfolio is the Prominent Hill mine in South Australia.

“What we have is a new company in a very unusual position in as much as there is a project that has recently gone through commissioning and is progressing well, but there is no debt and we have $1 billion of cash we have to ensure we spend in the most prudent way,” Burgess said.

“We don’t want to make any repeat mistakes made by us or anybody in the past.”

The company announced yesterday in its half year report total revenue of $854.5 million, and that Prominent Hill recorded revenue of $89.6 million and $19.4 million of earnings after commencing production in February.

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