Strong gold prices matched by higher volumes have helped 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, located approximately 160 kilometres north of Port Augusta, is expected to reach full production of 4.25 Million tonnes per annum (Mtpa) 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 on August 19, 2020.
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 approximately 4.5Mtpa achieved through July.”
OZ Minerals shares increased more than 2 per cent in early trade $14.42 following the announcement last week.
The positive result was no surprise, following five months of strong growth for the Adelaide-based miner.
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.
*Above image: OZ Minerals staff at Carrapateena. Photo supplied.