Morningstar Quantitative ratings for equities (denoted on this page by) are generated using an algorithm that compares companies that are not under analyst coverage to peer companies that do receive analyst-driven ratings. Companies withratings are not formally covered by a Morningstar analyst, but are statistically matched to analyst-rated companies, allowing our models to calculate a quantitative moat, fair value, and uncertainty rating. Click here for more on how to use these ratings.
Oz Minerals is a midtier copper/gold producer. Prominent Hill produced about 100,000 tonnes of copper in 2019 with cash costs below the industry average. The mine is very small contributor to total global refined output of about 24 million tonnes in 2019. Finite reserves are a challenge, but management has extended life at Prominent Hill, albeit at a lower production rate. Life extension comes with development of the nearby Carrapateena mine, which started in 2020. Carrapateena should initially ramp up to produce at about 70,000 tonnes a year before expanding to just over 100,000 a year from around 2028. The acquisition of Brazil-based Avanco Resources should add volume growth from 2020, but the scale is smaller than the Australian assets and progress likely to be incremental.
Adelaide, SA, 5950, Australia