Oz Minerals confident despite profit drop

Oz Minerals has posted a $152 million net profit and assured investors that its future extends beyond the Prominent Hill mine.

In reporting its results OZ said net profit was down nearly 44 per cent from $274.5 million in 2011, with revenue also down 11.7 per cent to $985.7m.

OZ managing director Terry Burgess said the downgrade was due to higher exploration, lower commodity prices, and higher production costs.

Burgess said exploration around Prominent Hill was expected to extend the mine's life, and the company had plans to continue operations in South Australia.

“Analysts now want to know what the production levels are going to be from 2020 to 2030,” he said.

“That, for me, is an incredible question — because before they were saying this is going to close down almost immediately.”

Burgess also said OZ had fast tracked exploration at the Carrapateener gold and copper project in South Australia, which it bought in 2011.

Also releasing its profit announcement yesterday was engineering firm WorleyParsons, which made $155.1m in the six months to December, up two percent on the same period last year.

The company said it expected to grow over the course of 2013 but volatility in global markets had impacted its performance.

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