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Mining industry

Oxiana Ltd Sees Bright Outlook for Commodities in 2006

Strategic Insights

— 1 min read

Oxiana Ltd, a gold and base metal miner, is confident about the future of its commodities business, with managing director Owen Hegarty expecting a strong year in 2006. The company has posted a strong net profit of $A80.302 million for the first half of 2005/06, a significant improvement from the previous corresponding period. Hegarty is optimistic about the company's copper and gold production, particularly from the Sepon project in Laos and the Golden Grove base metal mine, which is expected to reach record levels. Oxiana is also developing the Prominent Hill project in South Australia, with a decision to mine expected by the middle of 2006.

Key Takeaways:

  • Oxiana Ltd's managing director Owen Hegarty expects a strong commodity outlook in 2006, building on the company's excellent 2005 performance.
  • The company posted a net profit of $A80.302 million for the first half of 2005/06, a significant improvement from a loss of $A8.805 million in the previous corresponding period.
  • Oxiana is optimistic about copper and gold production from the Sepon project in Laos and the Golden Grove base metal mine, which is expected to reach record levels.
  • The company is developing the Prominent Hill project in South Australia, with a decision to mine expected by the middle of 2006.
  • Oxiana is financeable and has already started talking to customers and financiers regarding the project cost.
  • The company has tight guidelines for acquisitions and is not currently engaging with potential suitors.
  • Hegarty expects to see more consolidation in the industry over the coming year or two.

Statistics:

  • Net profit: $A80.302 million (first half of 2005/06)
  • Net loss: $A8.805 million (previous corresponding period)
  • Projected copper and gold production: record levels at Golden Grove mine
  • Projected production start: middle of 2006 (Prominent Hill project)
  • Expected timeline for consolidation: year or two
  • Project cost: currently being discussed with customers and financiers

Sources:

  • Asia Pulse, Perth, Feb 20, 2006
  • ASX:OXR (Oxiana Ltd)

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