OZ Minerals lifts copper guidance

Miner flags lower gold production, set to adjust dividend policy for growth

Copper and gold miner OZ Minerals expects to produce more copper in 2015 than in 2014, but forecasts lower gold production next year.

The miner said it expects copper production of more than 105,000 tonnes in 2015, after earlier forecasting production of 75,000 tonnes to 80,000 tonnes in 2014.

Gold production is set to be in excess of 105,000 ounces in 2015, the miner said, after earlier providing 2014 guidance of 130,000 ounces to 140,000 ounces.

Addressing shareholders at OZ Minerals' annual general meeting, chairman Neil Hamilton said the miner will adjust its dividend policy "to strike a balance between returning cash to shareholders while retaining sufficient funds to be able to take advantage of both internal and, where appropriate, external growth opportunities".

The miner is proceeding quickly towards resuming its run rate of 100,000 tonnes a year at its Prominent Hill mine, after disruption in 2013, he said.

OZ Minerals is also confident of first production this year at Malu Underground, its third mine at Prominent Hill, he said.

Mr Hamilton said a focus on productivity and cost reduction is producing good results.