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Cost cutting helps Oz Minerals to record profit

Business

Cost cutting and record production have helped Adelaide-based copper and gold producer Oz Minerals to more than double its profits for 2015.

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In a statement to the ASX this morning, Oz Minerals said the huge 168 per cent profit jump for 2015 was achieved by a “strong focus on driving down costs”.

It recorded a net profit of $130.2 million and a record copper production of 130,305 tonnes in the 2014-15 calendar year.

Managing director and CEO Andrew Cole said Prominent Hill was proving to be a strong foundation asset.

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Prominent Hill

“Production is at record levels and by maintaining a sharp focus on costs, we’ve managed to increase our annual profit by over 160 per cent despite the drop in commodity prices,” Cole said.

“We expect 2016 to be another excellent year with copper production guidance increasing to 115,000 ounces.

“Our lean strategy is delivering results.

“Prominent Hill had an impressive EBITDA margin of 55 per cent in 2015 whilst still remaining in the lowest quartile of C1 costs.

“Being at the bottom of the cost curve is a good place to be going into 2016 and we intend to take full advantage of our relative strength in the current market.”

Oz Minerals relocated its head office to Adelaide last year after the State Government gave it a $10 million sweetener.

 

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