OZ Minerals has got its cash stash and big mine and it’s now up to the board and management to make a second go of it.
In fact so in favour with investors is OZ Minerals now, that the shares rose 5.5 cents, or 6% to 96.5 cents in yesterday’s down market.
It’s something of a corporate miracle that Oz Minerals has a second chance after the way the board and management so completely stuffed things up last year.
But after the sale of assets to China Minmetals, as well as a Hong Kong company, it has raised $US1.354 billion ($A1.71 billion) after settlement adjustments.
OZ Minerals chairman Barry Cusack said in a statement to the ASX yesterday that the completion of the sale to China Minmetals Non-Ferrous Metals Co Ltd (Minmetals) meant all the company’s bank loan facilities have been repaid.
The miner now has a cash balance of more than $US575 million (A$726 million), and it has control of Prominent Hill, the newest mine in Australia and at least two interesting prospects in the same area of South Australia.
"We have now retired all of our bank loan facilities, which has been a critical issue for the company for more than six months," Mr Cusack said.
"OZ Minerals is now smaller and more focused in terms of its operations but is in a significantly enhanced financial position.
"We have the new Prominent Hill copper-gold operation in South Australia, a rejuvenated balance sheet with a substantial cash balance and we are now also beginning to accrue revenue from the Prominent Hill mine."
OZ Minerals will focus on restarting its exploration projects and development studies which were suspended last year.
The miner has $US105 million ($A132.7 million) of convertible bonds and fully secured bank letters of credit of about $A20 million principally to meet the company’s mining regulatory obligations, it said.
Andrew Michelmore has resigned as managing director and chief executive. He will work for China Minmetals.
Industry veteran, Terry Burgess will start as the new CEO in early August.
