OZ Minerals (OZL) released December Q results with group production of 28.7kt Cu and 36.8koz Au at an all-in sustaining cost (AISC) of US$0.94/lb (+16% Cu, +21% Au and -27% on costs QoQ). OZL finished the year at the upper end of production guidance with 109.3kt Cu and 128.9koz Au (vs guidance: 101-111.5kt Cu and 120.4-130.8koz Au). Carrapateena commenced production in December and the Company has released 5-year guidance outlining an accelerated ramp up to the initial 4.25Mtpa throughput rate by the end of 2020 and increased throughput rates of 4.7-5.0Mt from 2023. The capital estimates for the initial years is higher than our previous expectations, with $270-310m to be spend at Carrapateena and $430-510m for the group in 2020. BUY recommendation maintained.
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