OZL -3.74%: The predominantly Copper producer released quarterly production numbers today with production down, costs up and they also lowered their guidance – the negative trifecta. Q2 copper production was 27,423 tonnes vs quarter-ago 30,322 tonnes; Gold production 51,184oz vs quarter-ago 48,773oz; All-in Sustaining Costs $2.10/lb vs quarter-ago $1.75/lb. For the 12 months, they are guiding towards Copper production of120-135Kt; Gold production 208-230Koz and an AISC $1.60-1.80/lb. Covid absenteeism partly to blame while price inflation in the mining space is also have a decent impact – something we’ve seen right across the mining space. We now suspect they could defer their decision on West Musgrave given said cost pressures, however ultimately, OZL has followed the Copper price in an amplified way – Copper down ~30%, OZL down ~40% – we’ve recently bought Oz.
MM is cautiously bullish on OZL despite weaker quarterly production
Add To Hit List
