OZ Minerals Limited
OZ Minerals Limited
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Global miner’s focus turns to the integration of the OZ Minerals business to accelerate its copper and nickel operations after Q3 declines lower full year production guidance.
Australian miner OZ Minerals has awarded two contracts to GR Engineering Services for design and construction of the mineral processing plant for its 10-12Mtpa West Musgrave nickel-copper project in WA.
The announcement of the contracts come as OZ shareholders vote strongly in favour of its takeover by global giant BHP. The under-development project is seen as a key to BHP’s future nickel growth plans.
A stronger second half has not protected Australian miner OZ Minerals from a 60% drop in net profit attributed to lower gold and copper sales volumes and weaker copper prices for the year to end-Dec (FY2023).
On net revenue of $A1.92B (FY2021: $2.1B), the company’s EBITDA plunged to $692.7M ($1.16B) and NPAT to $207.3M ($530.7M).
A strong final quarter has enabled Australian international miner OZ Minerals meet the bottom end of its copper production guidance range for FY2022, with total gold output and mining unit costs both also on-target.
FY2022 production from its Prominent Hill and Carrapateena operations in South Australia and Carajás in Brazil totalled 124,065t copper (FY2021: 97,620t) and 211,147oz gold (257,987oz) at AISC of US189.7c/lb (56.9c/lb).
(CORPORATE STRATEGY)
BHP is seeking increased exposure to future-facing commodities including the development of a significant South Australian copper basin operation taking in the Olympic Dam, Carrapateena and Prominent Hill projects through its sweetened takeover offer for OZ Minerals.
A revised offer from BHP has revived the potential for a $A9.6B takeover of Australian international copper-gold producer OZ Minerals, with the target company agreeing a four-week exclusive due diligence period.
BHP’s new offer of $28.25 per share is 13% higher than the original offer on Aug 5 that was rejected by OZ, and represents a 49.3% premium to its closing share price at that date.
The proposed scheme of arrangement deal is conditional on due diligence and the unanimous support of the OZ board.
OZ Minerals will give more thought to further processing of nickel concentrate from its under-construction West Musgrave copper-nickel project in Western Australia to a high-grade product with the completion of an updated study of a mixed hydroxide precipitate development.
CEO Andrew Cole says the study and a pilot plant operation confirmed the technical and commercial opportunity of using a pressure oxidation (POX) and precipitation process to deliver a high nickel-content product with very low impurities.
Australian miner OZ Minerals has delivered a final investment decision on the $A1.7B development of its West Musgrave copper-nickel project in WA with expectations of it being one of the world’s largest, lowest-cost and lowest-emissions operations of its kind.
Australian miner OZ Minerals has met its target with a positive final investment decision on the $A1.7B West Musgrave development, expected to be one of the world’s largest, lowest-cost and lowest-emissions copper-nickel projects.
Australian miner OZ Minerals remains confident a momentum switch will enable it to meet its full year targets despite significant falls in revenue and earnings in a June half-year that was challenged by one-off weather and equipment hitches on top of COVID productivity impacts.
Lower sales volumes and weaker copper prices lowered H1FY2022 revenue to $A908.6M, from $986.1M in the previous corresponding year, generating EBITDA of $358.3M (H1FY2021: $561.2M) and NPAT of $109.2M ($268.6M).