The Oz Minerals Limited (ASX: OZL) share price rose 4.24% to $13.53 on Wednesday following the release of the company's quarterly report.
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What was in the announcement?
In the second quarter of 2020, Oz Minerals produced 24,577 tonnes of copper at an all-in sustaining cost of US 50.5 cents per pound. The company lifted its financial year 2020 production guidance from 83,000-100,000 tonnes of copper to 88,000-105,000 tonnes.
Oz Minerals produced 68,740 ounces of gold in the second quarter of the 2020 financial year. It also lifted its financial year 2020 production guidance from 207,000-234,000 ounces of gold to 227,000-249,000 ounces.
The company had $15 million in net cash (unaudited) at 30 June and had a $480 million revolving credit facility. During the quarter, Oz Minerals repaid $50 million in debt and invested $30 million in its Carapateena asset.
The company did not undertake any significant exploration during the quarter due to the coronavirus pandemic.
About the Oz Minerals share price
Oz Minerals is a copper and gold producer with assets in Australia, South America and Sweden.
In June, the company released a scoping study that suggested there was potential to improve shareholder value at its Carapateena asset. This was based on a pre-feasibility study that was also released. The Carapateena ore reserves were updated to 220 million tonnes at 1.1% copper, 3,100,000 ounces of gold at .44 grams per tonne and 31,000,000 ounces of silver at 4.5 grams per tonne.
Also in June, Oz Minerals announced it had acquired Cassini Resources. This took its ownership in the West Musgrave project to 100%. Oz Minerals paid with scrip in the form of one Oz Minerals share for every 68.5 Cassini Resources shares. Additionally, Oz Minerals may have to pay up to $20 million cash to Cassini shareholders if it sells the West Musgrave project for a higher value in the future. Two other projects held by Cassini were spun off into another company with shares given to Cassini shareholders.
The Oz Minerals share price is up 132% from its 52-week low of $5.83. It has risen 27.88% since the beginning of the year and is up 32.52% since this time last year.
