Oz Minerals optimistic despite profit slump

Normal
0

false
false
false

MicrosoftInternetExplorer4

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:”Times New Roman”;
mso-ansi-language:#0400;
mso-fareast-language:#0400;
mso-bidi-language:#0400;}

Oz Minerals has reported a 53 per cent drop in net profit to $274.5 million for calendar 2011 but said the drop was exaggerated by a one-off impairment charge.

The company reported an underlying net profit of $322.7 million, 19 per cent lower than 2010.

Oz Minerals also forked out $60 million to settle litigation brought by shareholders.

The company made the settlement without accepting liability after shareholders alleged they were mislead in 2008.

In making the announcement the company said it was well armed with $886 million in cash and a $US200 million debt facility to fund new exploration and development.

According to AAP Oz Minerals chief executive Terry Burgess said the company’s priority would be on finding a new project.

"I think the next two years are going to be the key, it is very important for us to discover something in the vicinity of Prominent Hill," he said.

Yesterday the company released positive results from the drilling program for its Carrapateena copper and gold project.

Burgess told AAP that the fact that Fortescue Metals Group and BHP Billiton were exploring areas adjacent to Carrapateena showed the area had potential.

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