The OZ Minerals Limited (ASX: OZL) share price is up 1% in early trade after giving its September 2019 update.
OZ Minerals was formed in 2008 through the merger of two mining businesses; Oxiana and Zinifex. Now based in Adelaide, OZ Minerals predominantly operates in the copper and gold mining sector through their copper-gold mine at Prominent Hill.
OZ Minerals September 2019 Quarter
The resources business revealed that it produced 24,663 tonnes of copper and 30,346 ounces of gold.
That means that the company in the three quarters of 2019 so far it has produced 80,630 tonnes of copper and 92,066 ounces of gold. FY19 guidance for copper is still for 103,000 tonnes to 115,500 tonnes.
Pleasingly for investors, the company has increased its gold guidance thanks to an increase at Antas. Total gold production is now predicted to be 123,400 ounces to 136,800 ounces. This is opportune considering the gold price is fairly high at the moment.
The company also said that its C1 cash costs has reduced thanks to a strong performance at Prominent Hill. Total costs are now expected to be US$0.75 to US$0.80 per pound for FY19, with Prominent Hill’s costs now predicted to be between US$0.62 to US$0.67 per pound.
This reduction of cash costs has also improved the all-in sustaining costs down to US$1.20 to US$1.30.
OZ Minerals CEO 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 cash targets. Concentrate stocks have returned to normal levels following strong sales in Q3 with volumes now recovered from the prior quarter.”
At Carrapateena first saleable concentrate on schedule for November with around 180,000 tonnes of development ore stockpiled. The underground development is advanced beyond the fifth production level, the site is connected to grid power network and the minerals processing plant is in the completion and commissioning phase.
Is The OZ Minerals Share Price A Buy?
OZ Minerals is progressing well. It’s a good time to be selling more gold with the price at close to US$1,500 per ounce – perhaps it’s best to wait for a lower gold price? However, I generally don’t like buying shares of commodity businesses, I like buying businesses that can grow profit year after year like the ones in the free report below.
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