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OZ Mineral Third Quarter Report 2019

Mining News - Published on Wed, 16 Oct 2019

Image Source: fool.com.au
OZ Minerals Chief Executive Officer, Andrew Cole said: “As we enter the final quarter of the year our two major assets are well positioned to achieve their respective schedule, production and cost targets. Concentrate stocks have returned to normal levels following strong sales in Q3 with volumes now recovered from the prior quarter.

Prominent Hill production is expected to end the year comfortably within guidance. We have lowered C1 cost guidance for the year and All-in Sustaining costs are expected to be at the bottom of the guided range. However, despite achieving a combined run rate of ~3.8Mtpa in July and August, underground ore movement guidance has been lowered to 3.3Mt – 3.5Mt for 2019. September ore movement was impacted by Woomera defence activity and isolated stope oversize issues and the lower underground volumes achieved in Q1 are now not likely to be recovered by year-end. All other Prominent Hill guidance remains on track.

At Carrapateena, over 180,000 tonnes of development ore is stockpiled on surface. Production drilling has commenced on the first production level and underground decline development has moved beyond the fifth production level access.

The site is now connected to the grid network and staged energisation of the minerals processing plant is underway. Underground crusher chamber works are well advanced and the conveyor decline installation is tracking to plan.

Antas gold production guidance has been raised with All-In Sustaining Costs guided lower following cessation of the planned cutback in favour of wall steepening. A high calibre in-country Advisory Board has now been established, complementing the strategic depth and capability of the local management team.

Looking ahead to the end of the year, we are firmly focused on delivering first saleable concentrate at Carrapateena and achieving our forecast production, cost and other targets at Prominent Hill.

Following a visit to Brazil this month by the OZ Minerals Board we are progressing initial early works at Pedra Branca, the first element of our Carajas hub strategy, whilst advancing the feasibility study. The study is now focus ed on realising operating cost opportunities, final mine design, pre-concentration trials and tailings studies utilising the Antas open pit.

We will continue to progress the West Musgrave pre-feasibility study as we investigate and pursue value enhancing opportunities including the Loesche Mill technology, which potentially offers significant power and cost savings.

At Mt Woods, near Prominent Hill, the top consensus targets from the Explorer Challenge will be tested with an initial program of ~6 holes for 3,000m in Q4, and in the Gurupi Province we will be progressing removal of the injunction while continuing the village relocation assessments and planning.”

OZ Minerals Metal Production & CostsQ1 2019Q2 2019Q3 2019YTDFY'19 Guidance
Total Copper (Tonnes)27,44228,52524,66380,630103,000-115,500
Prominent Hill25,57526,95923,10075,63495,000-105,000
Carrapateena----2,000-4,000
Antas1,8671,5661,5634,9966,000-6,500
Total Gold (Ounces)34,64827,07230,34692,066123,400-136,800 UP
Prominent Hill32,94725,81028,84487,601115,000-125,000
Carrapateena----3,000-6,000
Antas1,7011,2621,5024,4655,400-5,800 UP
C1 Cash Costs (US cents/lb)60.778.683.474.275-80 DOWN
Prominent Hill48.666.772.662.462-67 DOWN
Antas227288246253240-280
All-in Sustaining Costs (US cents/lb)103.9119.7128.3116.9120-130 DOWN
Prominent Hill90.7107.5117104.7110-120
Antas285335299304310-340 DOWN
 

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Posted By : Rabi Wangkhem on Wed, 16 Oct 2019
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