Strong gold prices matched by higher volumes has helped Adelaide-based miner Oz Minerals record a net profit after tax of $80 million for the six months to June 30.
The profit was up 82 per cent on the same period last year.
The company, which operates the Prominent Hill and Carrapateena copper and gold mines in South Australia, increased its net revenue by $156.5 million to $575.7 million, as a result of higher gold volumes and price. Gold sales increased by 53,800 ounces and the net A$ gold price was 36 per cent higher.
The Carrapateena mine is expected to reach full production of 4.25Mtpa by the end of the year, further strengthening cash flows.
The company also announced a fully franked interim dividend of 8 cents per share to the ASX this morning.
OZ Minerals Chief Executive Andrew Cole said the strong first-half performance enabled it to last year increase its copper and gold guidance for 2020.
“All our sites and has benefited from higher gold production and favourable gold pricing through the period,” he said.
“The ramp-up at Carrapateena during the half year has exceeded expectations with a strong performance from the underground materials handling system, production system and plant allowing an increase to production guidance.
“The Prominent Hill underground is performing well, and we have seen annualised ore mining rates of ~4.5Mtpa achieved through July.”
Oz Minerals shares increased more than 2 per cent in early trade this morning to $14.42 following the announcement.
The positive result was no surprise, following five months of strong growth for Oz Minerals.
The company’s share price started the year at $10.55 but slumped due to weak copper prices and coronavirus uncertainty, bottoming out at $5.99 on March 23.
Since then, Oz Minerals share price has more than doubled as its market cap to $4.58 billion, making it the state’s third-largest listed company.
Meanwhile, BHP announced yesterday its full-year profit had slipped four per cent to $11.02 billion after the coronavirus pandemic challenged supply and demand.
However, its full-year results showed its Olympic Dam mine in South Australia made a before-tax loss of $109 million ($US79 million).