Make Kitco Your Homepage

OZ Minerals net profit drops, stock trades up

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

OZ Minerals (ASX:OZL) said its net profit after tax for the half-year fell to $43.9 million compared to $127.8 million for the same period a year ago.

OZ Minerals, a copper-focused mining company based in South Australia with operations worldwide, released its H1 today.

Earnings per share dropped to 13.6 cents versus 42.7 cents for the same period a year ago. In 2019 the company expects to produce 103,000 to 115,500 tonnes of copper, and 122,200-135,600 ounces of gold.

The company was up 5.72% to A$9.43 a share.

OZ Minerals, the third largest copper producer in Australia, said order timing was a major drag on revenues and profits, stating that "... a number of customers preferenced the delivery of concentrate into the second half of 2019." Increased capital expenditures also crimped profits.

Looking forward, the company said copper faces a mixed bag.

"Despite robust fundamentals, base metal markets continue to suffer from trade war and political uncertainty between the US and China," the company said in a statement.

"Higher scrap importation, maintenance, new smelter start-up issues, and tighter credit for smelters generally drove buyer behaviour through to June, although an improvement in purchasing sentiment has been experienced subsequently with a number of customers now bringing shipments forward to secure supplies."

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News