OZ Minerals' quarterly production was in line with forecasts but costs were lower, likely driven by greater stockpile use, the broker suggests. Higher production and lower costs are nevertheless offset by the announced capex budget for Carrapateena.

While the green light for Carrapateena is a positive, the broker notes, but significant capex may weigh on the level of positive net present value impact. Equal-weight retained, target falls to $10.40 from $10.50. Industry view: In Line.

Sector: Materials.

Target price is $10.40.Current Price is $10.06. Difference: $0.34 - (brackets indicate current price is over target). If OZL meets the Morgan Stanley target it will return approximately 3% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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