The roller coaster ride for OZ Minerals Limited's (ASX: OZL) shareholders has continued today with the stock price spiking around 12% after the copper and gold miner released its full-year results for the year ending 31 December 2014.
Over the past 12 months, a period in which the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) has gained 6.5%, OZ Minerals stock has declined 47.3%. However the current returns are not as bad as things were in December, when the shares hit a low of $2.11. Today's bounce has helped the shares recover further, with the price currently at $3.80.
On initial inspection of the results it's hard to see what has the market so excited. The statutory loss of $294.4 million is certainly uninspiring, as is the underlying loss of $62.5 million. Likewise its balance sheet, which has often been a focus for investors because of its pile of cash, is not as enticing as it once was either. In December 2012 the miner had $659 million of cash, however that stash had diminished to $364 million as at December 2013.
Foolish takeaway
Management's outlook statement for 2014 is positive. A lower cash spend is forecast and improved conditions at the Malu Open Pit are expected. Investors with a deep understanding of the mining problems OZ faced during 2013 and who have a positive view on the direction of copper and gold prices in the coming year may see value in OZ at these levels. If the specifics which relate to OZ are outside an investor's 'circle of competence', then they would probably be best off letting this potential opportunity pass them by.
