OZ still extending

OZ Minerals' quarterly report reveals that the miner is still working with lenders seeking to refinance its loans.

OZ Minerals’ quarterly report released this morning has revealed that the miner is still working with lenders seeking to refinance its loans.

The financially beleaguered miner said it needs to gain further extensions that will enable the completion of its $1.2 billion investment deal with Minmetals.

The company also said that the recent US$211 million sale of its Martabe gold-silver project in Indonesia will help in contributing towards its refinancing issues.

The quarterly report, for the three months ending March 31, highlighted the continued development of the OZ’s Prominent Hill operation in South Australia, which has reached 80% capacity.

According to the company, the flagship project produced its first saleable copper concentrates in late February, as well as commencing delivery of concentrates for international customers to the Port of Darwin for international shipment in early April.

The first shipment of approx 10,000 tonnes of concentrate is to be dispatched this week.

Prominent Hill remains an OZ Minerals asset after Treasurer Wayne Swan would not allow it to be included in the initial Minmetals takeover deal on grounds of national security.

Upon the completion of the Minmetals deal, Prominent Hill will become OZ’s only operation.

OZ was also able to achieve its goal of cutting cash costs through the quarter, with costs down at its Golden Grove, Century, Rosebury and Sepon Copper projects.

Overall operating costs were down 15% from the previous quarter.

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