By Joel Scanlon
OZ Minerals has confirmed a $200 million share buyback after announcing high copper and gold production from the Prominent Hill mine. The buyback is to take place after August 17, 2011 once the half year financial results are announced.
The Chief Executive Officer Terry Burgess announced the quarterly production results of the company this week. Mr Burgess said that the company was benefiting from competitive costs and the strong market for copper. He added that the copper market is supply constrained. It was amazing that the market continues to under-deliver he added.
The demand in both India and China along with other developing nations was strong and the supply issues were facing all kinds of trouble with snow in Chile and the slowdown in Australia due to the mining tax considerations.
Burgess said that the direction they were taking was to aim to make the gold guidance. As per Mr Burgess it was not going to be their main priority if they find it was going to influence their copper production. The priority will be to treat copper ore.
The South Australian mining company has been looking to spend its cash on growth opportunities as it proved by acquiring the Carrapateena copper-gold project for $US250m. Now it continues to look for new assets.