SA Mines and Energy Journal : October-November 2010
8 OCTOBER/NOVEMBER 2010 SA MINES & ENERGY JOURNAL INDUSTRY NEWS OZ eyes opportunities OZ Minerals has signalled it is on the acquisition trail. Since much of the company was broken up and sold to a Chinese state-owned company last year to alleviate crushing debt, the copper and gold miner has steadily built a cash balance that stands at about $1.43 billion. Company managing director Terry Burgess said in August he was under no immediate pressure to return the money to shareholders and had actively considered new acquisitions. "We have looked at four different opportunities, " Mr Burgess said. "Some of them didn't offer the potential we were looking for, or we didn't see the value was there. " The company says a strong performance from the Prominent Hill operation in SA in the first six months of 2010 generated revenue of $589.9 million, up from $89.6 million a year earlier. The mine produced 60,145 tonnes of copper and 90,821 ounces of gold at cash costs of 49.1 US cents per pound of copper. "This is an outstanding result for a new operation, with the mine and plant performing well and costs constrained to plan, " Mr Burgess said. Zinc 'back in fashion' Zinc miner Terramin Australia is also hunting for new projects. Investor relations manager Ian McAleese said the company wanted to expand by acquiring base metals projects and would focus on zinc, but is open to other opportunities. "We focus on looking for base metal mines and the company actually put its foot on some of these properties when zinc was out of fashion, " Mr McAleese told the Paydirt Africa Down Under conference in Perth in August. "Some people would say it is still out of fashion but we would counter that argument. We try to find deposits that are close to infrastructure. " He said the company's Angas mine in South Australia and its Tala Hamza deposit in Algeria were examples of assets with good proximity to infrastructure. Outstanding result: Core samples at Prominent Hill. To find out how we can help you please contact Pierre Van Der Merwe -- Corporate & Advisory Partner P: (08) 8231 4725 E: firstname.lastname@example.org Are you working with the right team? Our Corporate and Advisory team are ASX listed company specialists, with significant experience in assisting the Mining and Energy sector. We help many of South Australia's leading exploration companies with cost effective Company Secretarial, Accounting, Taxation and Audit services, and let them get on with the business of exploring.
December 2010 - January 2011