News: BHP UPDATE 1-Australia's OZ Minerals cuts gold output view, retains copper forecast

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Oct 24 (Reuters) - Australian miner OZ Minerals Ltd (OZL) on Monday cut its annual gold production forecast on weaker expected fourth-quarter output from its Prominent Hill project in South Australia.

The Adelaide-based company said it expected lower gold stockpiles to be milled at Prominent Hill in the final quarter, resulting in decreased production of the yellow metal.

OZ now expects to produce between 203,000 ounces and 220,000 ounces of gold in fiscal 2022, compared with its earlier forecast of 208,000 ounces to 230,000 ounces.

The miner said, however, that it was on track to meet its annual copper production forecast of between 120,000 tonnes to 135,000 tonnes.

OZ's exposure to copper and nickel have made it an attractive takeover target amid a race to secure investments related to battery metals. It rebuffed BHP's (BHP) $5.8 billion bid in August and analysts have speculated that more bids may be tabled.

Last month, OZ announced a near A$1.7 billion ($1.08 billion) investment to develop the West Musgrave copper-nickel project in Western Australia.

The miner on Monday also raised its cost forecast for the fiscal year to between $1.75 and $1.95 per pound from $1.60 and $1.80 per pound. ($1 = 1.5704 Australian dollars)