OZ Minerals had previously warned that its 2009 profit report would be carry some nasty scars from the drastic financial restructuring it was forced to undertake when it had trouble refinancing its debt load during the global financial crisis.
So there was no surprise in today's report of a $512 million net loss for the year. Back on February 8, OZ told the market that it expected the loss would be somewhere between $500 million and $520 million.
The February 8 advice also contained the tip that a net profit after tax from the group's only remaining operating asset, the Prominent Hill copper/gold mine in South Australia, would be between $190 million to $210 million. Its actual result was a profit of $203 million.
OZ became a single-mine company last year when it was forced to sell $1.92 billion in mining assets to Minmetals of China and China Sci-Tech. The sales allowed OZ to pay off bank debt and keep about $1 billion.
OZ is pleased with Prominent Hill's performance. It said the mine had a very successful commissioning and ramp-up in 2009, reaching its name plate production capacity by the December quarter and exceeding production expectations for the year.
Last year's asset sales meant OZ was able to repay all of its $987 million in bank debt facilities.
But there was a loss $607 million recorded on the sale of assets, offset by a profit of $63 million those assets had earned before their sale.
The group's bankers put it through the wringer during last year's debt restructuring woes. But the situation is now reversed, with OZ sporting cash of $1.07 billion and now on the hunt for re-growth opportunities.
OZ outlined its re-growth ambitions in November, saying it wanted to acquire copper mining projects at either the exploration phase, development stage or in production.
But analysts wonder if OZ will be left alone to pursue those re-growth ambitions. The company is one of the most often mentioned groups when it comes to analysts tipping which companies could become the subject of a takeover bid.
Its market capitalisation of $3.2 billion (against which it holds cash of $1.07 billion) makes it little more than a snack for the world's big copper producers. But the usual suspects from China have to look elsewhere, with the federal government having already made clear that Prominent Hill's Woomera rocket range address means western world buyers would be preferred owners.
