OZ Minerals (OZL) released March Q results with 27.5kt copper and 30.8koz gold in concentrate at an all-in sustaining cost (AISC) of US$1.36/lb versus Argonaut’s forecast of 23.0kt and 33.0koz at US$1.30/lb. Open pit operations at Prominent Hill are now complete and mining will now transition to 100% underground ore with the mill being topped up with stockpile feed. Carrapateena development remains on track with $65m spent during the Q, leaving $~743m to completion. In March, OZL announced the acquisition of Avanco Resources (AVB) for ~$418m comprising 50:50 cash and scrip. Argonaut values AVB at $400m making the acquisition roughly value neutral, however we acknowledge the high strategic value as OZL gains a foothold in the proven IOCG district of Carajás, in Brazil.
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