Australian miner OZ Minerals has produced a record amount of copper in the December quarter to meet its 2022 guidance but is bracing for higher electricity costs.
Australian miner OZ Minerals has produced a record amount of copper in the December quarter to meet its 2022 guidance but is bracing for higher electricity costs.
The Adelaide-based company produced 36,307 tonnes of copper in the last quarter, which was up 21 per cent from 30,012t in the September period.
The increase in cooper production enabled the company to meet its FY22 guidance of 120,000t to 135,000t, which has been expanded to 120,000t to 143,000t for FY23.
Total gold production was down 2 per cent to 54,856t and all-in sustaining costs were down to $US186.7 in the quarter.
Its gold production guidance has been bumped down to between 191,000 and 213,000t in FY23, from 203,000-220,000t in FY22.
The miner’s AISC guidance has been increased due to cost inflation, higher electricity costs and an assumed stronger Australian dollar.
During the quarter construction began at its West Musgrave project in Western Australia, with a mixed hydroxide precipitate (MHP) study having confirmed technical and potential commercial opportunity to produce high-quality and high-grade MHP.
“We commenced construction on the West Musgrave project following a positive final investment decision and demonstrated the technical and potential commercial opportunity of producing a high quality and high-grade mixed hydroxide precipitate product for feed into the battery industry,” OZ Minerals said in the announcement.
OZ Minerals entered a scheme implementation deed with BHP for the mining giant to acquire 100 per cent of OZ Minerals through a scheme arrangement for $A28.25 per share.
The company’s board of directors unanimously recommend shareholders vote in favour of the scheme, which is set to take place in April.
“During the final quarter BHP increased its proposed offer price for OZ Minerals following the board’s rejection of an initial $25 per share offer in August,” Oz Minerals said.
“On December 22 we entered into a scheme implementation deed with BHP which confirmed BHP’s agreement to pay $28.25 per share to acquire 100 per cent of OZ Minerals by way of a scheme of arrangement subject to satisfaction or waiver of customary conditions.
“OZ Minerals directors unanimously recommend shareholders vote in favour of the scheme pending the independent expert concluding, and continuing to conclude, that the scheme is in the best interests of shareholders and absent a superior proposal.”
