OZ Minerals Ltd, which has struck a deal with China Minmetals Non-Ferrous Metals Co Ltd that will give it funds to pay down debt, has reported lower zinc production at its Century mine.
First quarter production was 101,961 tonnes and was lower due to the impact of wet weather during the period, which was the heaviest in the history of the mine based in Mount Isa, Queensland.
OZ Minerals said its production guidance for the year remained unchanged at 495,00 tonnes of zinc concentrate.
At the Sepon project in Laos, copper production was 17,217 tonnes and gold output was 26,422 tonnes.
OZ Minerals said its guidance for calendar 2009 copper production at Sepon was unchanged.
OZ Minerals recently recommended a revised offer from Minmetals that will deliver it $1.75 million in cash.
Minmetals hopes to acquire all of the companies metals mining assets, including Century, Sepon, Golden Grove, Rosebury, Avebury and Dugald River.
The deal excludes the Prominent Hill project in South Australia and selected assets in Cambodia and Thailand, which OZ Minerals will retain.
Minmetals had originally also wanted to acquire Prominent Hill.
OZ Minerals also said that it continued to working with its bank lenders to secure an extension to an upcoming debt maturity.
In late February, OZ Minerals got approval to extend the terms of its debt arrangements to March 31.
Its bankers then granted a further extension to April 30.
"The company continues to work with its lenders to secure a further extension to its facilities to 30 June 2009 to facilitate completion of the Minmetals transaction," OZ Minerals said.
The proposed transaction with Minmetals has been approved by the federal government and is awaiting Chinese government approvals.
Shareholders will vote on the deal at the company's annual general meeting in June.
Source: Melbourne Age
No comments:
Post a Comment