Here’s why OZ Minerals (ASX:OZL) has adjusted its gold outlook

Highlights 

  • The miner’s copper production during the quarter was 33,749 tonnes, significantly up from the previous quarter.
  • The gold production guidance for the financial year 2021 has been upgraded to the range of 220,000-243,000 ounces.
  • The copper production for the quarter stood at 33,749 tonnes, significantly higher than the previous quarter’s production of 32,681 tonnes.

Adelaide-based copper-focused mining company OZ Minerals Limited (ASX:OZL) has upgraded its gold production target for the financial year 2021. The mining company has reported a production of 33,794 tonnes of copper and 65,932 ounces of gold for the September quarter in the latest activities report released on Wednesday.

The gold production guidance for the financial year 2021 has been upgraded to the range of 220,000-243,000 ounces against the previous target of 205,000-228,000 ounces, thanks to robust production results during the September quarter. At the same time, the miner’s copper production expectations remain at 120,000-145,000 tonnes. All-in sustaining cost expectations for the financial year have been reduced to 125-140c/lb relative to the previous estimate of 130-145c/lb.

Must Read: Commodity Market at Multi-Year Highs, 10 Hot Stocks to look at

Robust production during September quarter

The copper production for the quarter stood at 33,749 tonnes, significantly higher than the previous quarter’s production of 32,681 tonnes. The company’s gold production has increased from 57,875 ounces to 65,932 ounces during the quarter.

Copper mine | Source: © Alfotokunst | Megapixl.com

In fact, the company expects its gold production to be near the top end of the updated guidance range. However, OZL expects Carrapateena copper production to stay at the lower end of its range, as the company is encountering lower grade areas for cave propagation.

Also read: Copper prices hit six-week high, six stocks under the spotlight

The copper and gold production at Prominent Hill remains strong with higher-than-expected gold grades in the stockpiles, resulting in the overall increase of the annual gold production guidance. Additionally, the company has commenced processing ores from Pedra Branca, the company’s first satellite mine to be realised under Hub strategy.

Gold production | Source: © Bendicks | Megapixl.com

OZL also released a maiden mineral resource at Santa Lúcia during the quarter, moving a step closer to advancing the company's Brazil hub strategy. Additionally, the copper-focused miner is advancing its growth pipeline projects with a drilling program starting at the Succoth copper deposit.

Also read: OZ Minerals (ASX:OZL) and Lynas (ASX:LYC) Shine with Productive December Quarter

The West Musgrave team of the company continues to progress the final study phase with various aspects of the project well advanced and technically de-risked. The company has a strong financial position with a cash balance of AU$188 million at the end of the quarter and significant available liquidity.

Bottom Line

The copper player believes it is on track to achieve the guidance for the current financial year.

Comment


Disclaimer

Ad

GET A FREE STOCK REPORT


Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.


   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK