OZ Minerals (OZL) delivered a strong December Q to round off its fourth consecutive year meeting annual guidance. Group production for the Q was 29.5kt and 40.1koz Au at a US$1.18/lb all-in sustaining cost (AISC). Prominent Hill (PH) Cu and Au production of 116.0kt and 135.6koz was at the upper end of CY18 guidance and the AISC of US$1.14/lb was below guidance. Carrapateena development remains on track for first production in Q4 CY19. OZL added $51m to the balance sheet following $99m capex for Carrapateena and $14m exploration expenditure. OZL is our preferred base metal stock under coverage with long life assets, near term production growth, a strong balance sheet and future optionality from a pipeline of globally diversified assets. BUY maintained.
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