Copper/gold miner Oz Minerals has maintained its production guidance for the full 2020 following a strong start to the financial year, and despite the impacts wrought by the Covid-19 pandemic.
“Despite the Covid-19 pandemic constraints and response to protect the health of our employees, other stakeholders and business generally, the operations delivered a strong opening to 2020 with only critical frontline roles on site in the latter half of the quarter,” said MD and CEO Andrew Cole.
Copper production during the March quarter reached 20 231 t, while gold production reached 55 606 oz, compared with the 28 659 t of copper and 36 808 oz of gold produced in the previous quarter.
The Prominent Hill operation, in South Australia, delivered 15 580 t of copper and 49 049 oz of gold at a negative C1 cost of 26.8c/lb, while the Carrapateena project delivered 2 495 t of copper and 5 041 oz of gold. The Carajas operations, in Brazil, added a further 2 156 t of copper and 1 516 oz of gold in the quarter.
Cole noted that the plant ramp-up at Carrapateena was ahead of schedule with a five-day continuous period at 12 000 t/d nameplate capacity achieved during the month of March, and early recoveries averaging over 90% for copper and 85% for gold.
“Carrapateena and Prominent Hill expansion studies progressed during the quarter with the Carrapateena expansion prefeasibility study still on schedule for release in mid-year,” Cole said.
He noted that in Brazil, the development of the Carajas hub saw significant progress during the quarter, with the Pedra Branca underground development reaching 274 m, and the installation of ore sorting equipment at Antas nearing completion, along with the implementation of the first phase of the strategic Vale/Oz Minerals cooperation agreement using Vale rail and port infrastructure to realise operational and cost efficiencies.
Meanwhile, during the quarter under review, Oz Minerals announced that some A$150-million of 2020 costs would be removed through the deferral of growth capital, exploration and study expenditure, along with general company-wide cost savings as part of the Covid-19 business response.
Following this review, exploration fieldwork and other projects, including West Musgrave, have been pared back to preserve cash and protect community and employee health, in line with government requirements and the company’s operating strategy.
“No material production impacts have been experienced to date as a result of our Covid-19 response or government restrictions. The company has in place a comprehensive management plan to protect the health and safety of our people and other stakeholders, including the early introduction of travel restrictions, improved hygiene measures and social distancing initiatives.
“Both Prominent Hill and Carrapateena have moved towards a full South Australian-based workforce with the temporary relocation of some interstate-based contractors and employees to the state. We have, however, planned for a range of potential worsening scenarios, some of which may necessitate a future change to guidance if production is impacted and costs or capital are further reduced,” Cole said.
In the meantime, the company has maintained its production guidance of between 83 000 t and 100 000 t of copper and between 207 000 oz and 234 000 oz of gold for the full year, at C1 cash costs of between 60c/lb and 70c/lb.
Source: Mining |
