OZ Minerals in ‘healthy position’

OZ Minerals today announced total revenue of $854.5 million and a balance sheet over $1 billion in its half year to 30 June financial results.

OZ Minerals today announced total revenue of $854.5 million and a balance sheet over $1 billion in its half year to 30 June financial results.

The company’s Prominent Hill operation recorded total revenue of $89.6 million and $19.4 million of earnings before interest and tax, after commencing production in February.

Despite ending the half year in a strong financial position, the entire period was a time of great change, the company said in a statement.

The company began the year with bank loans of $987 million.

“At the beginning of 2009, the company was facing severe financial uncertainty as it dealt with the refinancing of its bank loans,” OZ Minerals said.

“By 30 June this uncertainty was resolved with the sale of assets to Minmetals for US$1.4 billion, which allowed the Company to repay all of its bank loan facilities.

“In addition, OZ Minerals completed commissioning and commenced formal operation of the new Prominent Hill operation and sold the Martabe project in Indonesia for US$211 million.”

The company sold its interests in the Century, Golden Grove, Rosebery and Sepon operations as well as the Avebury asset and certain other exploration assets to Minmetals on 16 June 2009.

Accordingly, these assets only contributed to the first five months of the half yearly results.

The operations recorded total revenue of $764.9 million and earnings before interest and tax of $99.4 million.

The revenue from Prominent Hill was capitalised during the commissioning period until the end of April, so it only contributed to earnings for May and June.

Overall, the OZ Minerals recorded a net loss of $580.7 million primarily due to a $553.9 million loss on the sale of assets, together with lower revenue from operations and costs, the company said.

The company continues to have debt in the form of convertible bonds with a face value of US$105 million.

OZ Minerals’ board has resolved not to pay a dividend.

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