Oz Minerals announced a A$109 million (US$75 million) half-year profit, down 60% from the same period a year ago.
The company, which rebuffed an acquisition offer from BHP Billiton earlier this month, said it faced a number of issues.
“A challenging first half affected by sustained COVID absenteeism and one-off weather and equipment interruptions is reflected in a first half net profit of $109 million on net revenue of $909 million. Profit was also impacted by industry-wide inflationary pressure and weaker market conditions towards the end of the half," said OZ Minerals Chief Executive Andrew Cole.
Production was affected. Copper sales were ~6 per cent (3,400 tonnes) lower while gold sold was ~21 per cent (24,000 ounces) lower as a result of the depletion of higher-grade gold ore stockpiles at Prominent Hill in the prior year. The realised A$ copper price was 4 per cent lower while the A$ realised gold price was ~11 per cent higher compared to the previous period. A hedging loss on the high-grade gold stockpiles of $34.0 million was recognised in the comparative period.
The company said its operating cash flows were A$375 million. Its net cash position is A$82 million.
The company increased working capital liquidity from A$480 to A$700 million.
The company said it is advancing at Prominent Hill and Carrapateena. The West Musgrave final investment decision is expected in the second half of 2022.
