OZ Minerals (OZL) released June Q results with group production of 25.8kt Cu and 27.1koz gold at an all-in sustaining cost (AISC) of US$1.20/lb (+4%, -22% and +15% respectively QoQ). Carrapateena development remains on track for first concentrate production in Q4 CY19. Total expenditure on the project was $177m, which had the biggest impact on the cash balance which decreased to $187m at 30 June (from $342m at 31 March). OZL recently completed a review of its Brazilian assets. The key outcomes was a reduced life of mine (LOM) production from Antas. Production will now cease in 2021, then trucked ore from Pedra Branca will be delivered to the Antas mill shortly after, establishing a hub strategy around the installed infrastructure. OZL also delivered a PFS on the CentroGold asset with a NPV10 of ~US$200m (OZL est.). BUY recommendation maintained.
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