Metals News
UPDATE 1-Oz Minerals Says Has More Funds for Acquisitions
industry news
03:38PM
Jul 29,2010
Source:SMM

SYDNEY July 29 (Reuters) - Oz Minerals (OZL.AX), Australia's third-largest supplier of copper concentrates, has built up its cash position over the last 12 months to position it for acquisitions, Chief Executive Terry Burgess said on Thursday.

Oz Minerals plans to buy assets that could more than double its copper concentrate production as output at its existing mine declines, and has already made several non-binding offers to expand its copper mining operations.

The move is being triggered by global fundamentals for copper demand favouring suppliers of concentrates, with smelters continuing to face difficulties securing adequate volumes.

"We have more money now than we had a year ago," Burgess said at a mining club briefing. The company had built up a war chest of around A$1 billion ($892.9 million) after selling assets to China's Minmetals last year.

Oz minerals earlier this year paid A$100 million for a 19.9 percent stake in Australian copper explore Sandfire Resources (SFR.AX).

"We still have plenty of money in the bank for future acquisitions," said Burgess without elaborating.

Oz Minerals said on July 16 its Prominent Hill mine yielded 28,236 tonnes of contained copper in the second quarter, up 4 percent from a year ago but down 11.5 percent from the previous quarter.
 

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