It's good to know that Terry Burgess has expressed "major concern" and "great disappointment" at the 10% share slump this week.
That's a relief, I was beginning to think he hadn't noticed..
nil.
From today's AGE
OZ Minerals boss holds the line
August 18, 2012
Peter Ker -Resources reporter
OZ MINERALS boss Terry Burgess has expressed ''major concern'' and ''great disappointment'' at the 10 per cent share slump that struck his company this week, but vowed not to be panicked into a change of strategy.
Mr Burgess made the comments while focusing on a different type of decline yesterday: the formal opening of OZ Minerals' new Ankata underground project in South Australia.
The $148 million shaft connects to OZ Minerals' existing open pit at Prominent Hill and runs one kilometre west towards the Ankata copper and gold deposit.
The project is one of several measures under way to extend the life of the Prominent Hill precinct, which is expected to ends its run before OZ's next mine begins at nearby Carrapateena about 2020.
But therein lies some of OZ's challenges: the open pit at Prominent Hill is becoming more expensive to mine, and Mr Burgess said rising costs were likely to be one of the motivations behind this week's sell-down from $8.01 to below $7.20.
The introduction of more family-friendly rosters for OZ's mine site workforce has also pushed up costs, but Mr Burgess defended that spending, saying it was a net gain for the company to retain skilled and experienced employees and avoid high turnover rates.
''We see those as investments in the operation and we look forward to the returns out of those investments in the coming months and years,'' he said.
Mr Burgess said the company took a disciplined approach at all times and would not be spooked by nervous investors.
''Certainly there's a major concern if the announcement of our results triggers a sell-down of 10 per cent of the value of the company in a week,'' he said. ''But we are not going to panic into making decisions just because of a share price fall in one week.''
The company is looking to spend about $750 million on acquisitions to plug the production gap between the end of Prominent Hill and the start of Carrapateena. Ankata is expected to produce 1.2 million tonnes a year and should be fully operational later this year.
Over its five-year life, Ankata will provide high-grade copper ores that - when blended with ore from the open pit - will lift the overall grade from the Prominent Hill precinct
http://www.theage.com.au/business/oz-minerals-boss-holds-the-line-20120817-24e2i.html
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