News: OZL UPDATE 1-OZ Minerals profit sinks, co upbeat on H2 as COVID pressures ease

(Adds details on results, CEO comment, background)

Aug 26 (Reuters) - Australian copper-nickel miner OZ Minerals Ltd (OZL) said on Friday its first-half profit more than halved, hurt by a labour crunch, interruptions related to weather and equipment shortages, and higher exploration costs.

Industry-wide inflation has led to ballooning expenses for companies around the world, while floods in some areas of Australia added to the woes of miners who had struggled with a labour crunch in the early parts of 2022.

OZ, which rejected a $5.8 billion takeover offer this month from global miner BHP (BHP) , maintained its annual production and cost forecasts, as worker absenteeism over COVID infections receded.

"We are now regaining operating momentum at both Prominent Hill and Carrapateena with improvement plans gaining traction supported by considerably lower absenteeism, resulting in fewer shift losses and improved equipment availability," Chief Executive Officer Andrew Cole said.

"Combined with an increased movement of the cave at Carrapateena, these green shoots have increased our confidence in a stronger second-half performance and we remain on track to meet our group annual production and cost guidance."

The company said net profit after tax was A$109.2 million ($76.04 million) for the six months to June 30, compared with A$268.6 million a year ago.

Net revenue sank about 8% to A$908.6 million due to a lower sales volume and a 4% drop in the realised copper price.

($1 = 1.4362 Australian dollars)