OZ Minerals (OZL) released March Q results with group production of 27.74kt Cu and 34.6kt Au, down 7% and 13% respectively QoQ. Operations were impacted by a range of issues including manning, equipment availability and weather. Importantly though, issues impacting the flagship Prominent Hill mine are not expected to persist into Q2 and 2019 guidance of 95-105kt Cu and 115-125koz Au has been maintained. Carrapateena development remains on track with first ore intercepted from the Tjati decline and commissioning of the plant still scheduled from Q4 2019. In conjunction with Carrapateena development, OZL is busy with a number of value adding studies on both producing and pipeline assets due for completion in 2019. At 31 March the Company had cash of $342m (down $163m QoQ). We downgrade OZL to HOLD (from BUY) as the stock is now trading in line with our target price.

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