OZ Minerals Ltd (ASX: OZL) is a Copper-focused international company based in South Australia. OZ Minerals have a number of operations that include, Prominent Hill, Antas, Carrapateena, Pedra Branca, West Musgrave and CentroGold. OZ Minerals has a market capitalisation of A$2.89 billion.
What are the results from OZ Minerals FY19?
Today (Wednesday 28 August 2019) OZ Minerals released its HY19 results. The main points are as follows:
- Net revenue for HY19 is A$419 million, down 111 per cent from HY18.
- Underlying net profit after tax for HY19 is A$43.9 million, down 89 per cent from HY18.
- Earnings per share for HY19 is A13.6 cents, down 29 per cent from HY18.
- Oz minerals paid an interim dividend of 8 cents per share (fully franked).
What were the drivers of this result?
The main driver of this result was rising stockpiles of metal ore.
The second driver was the weak price of Copper. The Average price of Copper was 3 per cent lower than the corresponding period.
What is the outlook for OZ Minerals?
OZ Minerals management notes that FY19 guidance is as follows:
- Copper production (tonnes) for FY19 is 103-000 – 115,500.
- Gold production (tonnes) for FY19 is 122,200 – 135,600
Copper and Gold production for FY19 is slightly lower or flat compared with production from HY18. Additionally, costs are slightly higher for FY19 compared with the corresponding year.
What is the market reaction?
The initial market reaction to OZ Minerals HY19 is positive. OZ minerals share price is up around 4.5 per cent and is currently trading at around A$9.32 (12.10pm, 28 August). However, this increase may not solely be attributed to OZ Minerals HY19 result, but mainly due to an overnight rise in the price of Copper and Gold. OZ minerals has a P/E ratio in the mid-teens and an annual dividend yield of 2.5 per cent (fully franked).
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