OZ Minerals net profit drops, stock trades up
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."