Price drop up OZL alley with $200mn buyback to commence from August 17 (expected).
Credit Suisse First Impressions: 1H in line
Very simple, in line result, with no surprises. Operating profit of $189.1mn and statutory profit of $113.9mn after the pre-advised $60mn settlement of two class actions and a $15.2mn impairment on Toro Energy investment.
Marginally weaker than our projection due to a $32.7mn FX loss ($23mn after tax).
Eps of 58cps on underlying earnings.
Strong cash balance of $905.6mn continues to provide plenty of capacity to fund development opportunities and corporate activity to fill the potential earnings hole as Prominent Hill earnings decline before Carapateena ramps up.
No change to guidance ? but none was expected.
Interim dividend of 30cps or 52% of eps of 58cps, in line with policy to pay out 30-60%.
Exploration spend was $35.9mn of which $20.9mn or 58% was expensed.
Corporate overheads $24.5mn.
Operating cash flow of $388.3mn allocated to: $44mn capital expenditure, $33.6mn exploration, $245mn for the Carapateena acquisition and $518mn returns to shareholders vs $388.6mn capital return and $129.5mn dividend.
No 1H cash tax paid. $14.8mn tax losses remain and will be exhausted in 2H, resulting in tax provisioning and future dividend franking.
OZL Price at posting:
$11.90 Sentiment: Hold Disclosure: Held
