Looking forward to the FID on Prominent Hill Shaft expansion. Expected mid 2021.
OZ Minerals Managing Director and Chief Executive Officer, Andrew Cole, said:“The positive findings of the Prominent Hill Expansion Study on a relatively small case increases our confidence in Prominent Hill’s longevity and ongoing performance.“While examining only a portion of the Mineral Resource, the study showed significant cash flow uplift, improved safety, and lower mining costs and emissions intensity. It provides a strong foundation from which to consider the potential of the remaining two thirds of the Inferred Resource as the study and infill drilling progresses to inform an investment decision mid-2021.“We understand the orebody and the mining methods to be used. We have consistent historical Resource to Reserve conversion rates. Underground mining rates are now averaging circa 4 Mtpa and we expect to achieve rates between 4–5 Mtpa8 from 2022 when we are able to mine simultaneously from the bottom of the mine plan and from the current mining levels. The mine has consistently operated in the lowest quartile of the cost curve for many years. We look forward to the results of the study and further infill drilling in mid-2021.”
OZL Price at posting:
$22.37 Sentiment: Buy Disclosure: Held
