OZ Minerals recorded an excellent performance in 2010 at Prominent Hill. Net profit after tax for the consolidated entity was $586.9 million. This was represented by net profit after tax of $539.3 million from the continuing operations, which includes the reversal of an impairment of Prominent Hill assets recognised at 30 June 2010 of $141.1 million after tax, and a net gain after tax of $47.6 million from working capital and tax adjustments in relation to assets sold in 2009.
Based on this sound and consistent performance, the Company announced a total unfranked dividend of seven cents per share, with three cents per share paid in September 2010 and 4 cents per share to be paid in March 2011. These dividends amounted to $223.1 million in aggregate, and represents 56 percent of net profit after tax from normal operations in line with OZ Minerals’ policy.
Copper production for the year was 112,171 tonnes of metal contained in concentrate, which exceeded annual guidance of 100,000 to 110,000 tonnes. This guidance level for total copper production is expected to be maintained for the current remaining life of the Malu open pit, as Malu production will be supplemented by production from the new Ankata underground mine.
Gold production in concentrate was also strong with 196,400 ounces compared to an annual guidance of over 185,000 ounces. Gold production benefited from favourable gold grades in ore mined and greater volumes of gold ore processed than initially planned. Total gold production is expected to continue between 185,000 to 205,000 ounces for the current remaining life of the Malu open pit as treatment of gold only ore and recoveries are maintained at levels achieved in 2010.
OZ Minerals held a cash balance of $1,334.2 million at the end of 2010, an increase of $258.0 million from 31 December 2009.
|Consolidated Entry Results||12 months ended 31 December 2010||12 Months ended 31 December 2009||Movement $m||Movement %|
|Revenue from continuing operations – $m||1,128.4||608.5||519.9||85.4|
|Revenue from discontinued operations – $m||–||764.9||(764.9)||(100)|
|Profit/(loss) after tax attributable to equity holders of OZ Minerals Limited – $m||586.9||(517.3)||1,104.2||<(100)|
|Net tangible assets per share – cents||101.6||82.2|