Oz minerals updated copper production and cost guidance

Oz Minerals Limited (ASX: OZL) provided an update regarding its annual copper production for 2022, which has been adjusted to reflect the softer start to the year and further material handling system and equipment availability issues at Carrapateena.

COVID absenteeism as well as flooding affected both Australian assets during the first quarter resulted in lower first quarter production rates.

Carrapateena’s remediation plan has been significantly affected by further conveyor belt issues on the material handling system, which is resulting in a reduction of ~4,300 tonnes of copper metal produced, as well as ongoing resourcing and supply chain issues impacting equipment availability.

The company is establishing a more comprehensive operational re-set plan to increase production rates in the second half of the year to drive Carrapateena towards achieving a revised production guidance range of 55,000 – 61,000 tonnes of copper, which is 13% lower than its earlier guidance. Further, Carrapateena’s longer-term guidance to 2025 is unchanged. Oz Minerals’ All-In Sustaining Cost guidance has been increased by 17% because of the lower production combined with current cost inflation of circa 8% across all assets which has persisted at these higher levels into the second quarter.

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