Oz Minerals Ltd. on Monday said it met revised 2022 copper-production and cost guidance, and that full-year gold production was within the company's original forecast.

The Adelaide-based miner, which has recommended a takeover offer from BHP Group Ltd., said it expects to produce 120,000-143,000 metric tons of copper this year, compared to the 124,065 tons it produced in 2022. It estimated gold output of 191,000-213,000 troy ounces, compared to 211,147 ounces last year.

Oz Minerals also forecast so-called all-in sustaining costs for 2023 of between US$1.87-US$2.07 a pound, compared to US$1.897 a pound in 2022.

Here are some remarks from the company's fourth-quarter production report.


On 2023 production expectations:

"We have... provided 2023 guidance which will see group production broadly in line with 2022 with improving production at Carrapateena and the Carajás East being offset with lower production at Prominent Hill due to the processing of lower-grade stockpiles compared to 2022.

"Prominent Hill's lower production is primarily due to the processing of lower grade stockpiled material and lower stockpile volumes to be processed to maximize value rather than tons. With stockpiles being processed at a lower rate they are now expected to be largely depleted in 2025 (previously 2024)."


On 2023 cost forecasts:

"Group all-in sustaining costs are expected to remain elevated compared to 2022 primarily driven by the full year effect of cost inflation, a weaker U.S. dollar assumption, higher electricity cost assumptions at our Australian assets which have recently come off longer-term contracts and are now operating under a market-rate supply and subject to potential electricity price volatility, and increased underground volumes at Prominent Hill. Production rates are expected to ramp up over the course of the year."


On 2022 copper output:

"A strong final quarter saw a 21% lift in copper production, quarter on quarter, resulting in group production and cost guidance (revised mid-year) being met and creating positive momentum into 2023. Prominent Hill met its original copper guidance for the eighth consecutive year, confirming its reputation as a consistent reliable operation. Pedra Branca mine ramped up to full production ahead of schedule."


On Prominent Hill expansion:

"At Prominent Hill, we have progressed construction of the Wira Shaft mine expansion with the shaft pre-sink completed in December. Resources were redirected during the year to production over development to counter the impacts of the challenging first half, which will now see the production ramp up from the shaft move from the first half of 2025 to the second half of 2025. The expansion project will further extend Prominent Hill's life of mine and during the year project optimization work led to increasing the shaft's capacity from 6Mtpa [million tons per annum] to 6.5Mtpa. The increased capacity will provide us with optionality to increase annual production rates."


Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com


(END) Dow Jones Newswires

01-29-23 1755ET