OZ Minerals expects recent falls in the Australian dollar to help the gold and copper miner even if commodity prices stay low.
The company has suffered a $268 million loss in the six months to June 30, sharply down from a $119.5 million profit posted during the same period in 2012.
The result comes amid a slide in gold and copper prices, leading to a major non-cash writedown of its main Prominent Hill mine in South Australia, which was flagged in late July.
But chief executive Terry Burgess said a further fall in the Australian dollar, which dipped below parity with the greenback in May, would help even if commodity prices stayed low.
“A modification of the Australian dollar down to the 90 (US) cents range … it’s certainly good for the mining industry, it’s good for OZ Minerals,” he told reporters on Wednesday.
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“If the copper price stays where it is, we continue to be very positive about the future for copper.
“Chinese growth at seven per cent today is certainly better than Chinese growth at 12 per cent 10 years ago, because you’ve got a much bigger base to grow on and that will require copper.”
The company said gold and copper production volumes had fallen at Prominent Hill because of restricted access, lower ore grades and 2013 being the peak year of waste movement.
OZ Minerals’ revenue fell 39 per cent to $316.2 million, from $514.8 million, amid lower prices and production levels.
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The result also included an after-tax asset writedown of $231.9 million in relation to Prominent Hill property, plant and equipment and gold ore inventories.
Chief financial officer Andrew Coles said a recovery in commodity prices could see the impairment reversed.
The company expects copper production for 2013 to be 82,000 to 88,000 tonnes, with production expected to be stronger in the second half.
Gold production of 120,000 and 130,000 ounces is expected for the same period.
The interim, unfranked, dividend of 10 cents is the same as the previous year’s.
OZ Minerals’ share price had fallen 16 cents, or 3.64 per cent, to $4.23 at midday.
