Oz Minerals has capped off a tough year with an investor update which has disappointed the market, sending its share price into free-fall on Wednesday.
The troubled miner announced its 2014 production forecast, which was lower than expected with guidance of up to 80,000 tonnes of copper and 140,000 ounces of gold.
The company also failed to add to is resource base, revealing exploration work at its only operating mine, Prominent Hill, hasn’t met expectations.
Next year’s production guidance is only slightly higher than 2013 where expected production was between 70,000 and 75,000 tonnes of copper and 120,000 and 130,000 tonnes of gold.
Looking ahead, Oz stated copper and gold production will continue to decline beyond 2015.
The current mine life plan for its Malu open pit runs until 2018 while its underground Ankata mine will continue until 2022.
Oz’s share price tumbled about 30 per cent yesterday, before recovering to close down 14 per cent at $2.65.
Earlier this year the copper-gold miner warned falling commodity prices will see its profit take a hit.
In July Australian Mining reported 61 jobs were cut from the Prominent Hill site as the miner attempted to cut discretionary spending.
Weak commodity prices and a wall slide at its Prominent Hill site saw the miner record a net loss of $268 million for the first half of the year.
Despite what has been a rough year, Oz Minerals chief executive Terry Burgess said he is confident 2014 will be better with less material to be shifted and improves resource grades on offer, The Australian reported.
The company is also investigating how to forge ahead with its Carrapateena project in South Australia, with an estimated resource base of 800 million tonnes Oz claims it is the nation’s largest undeveloped copper project.