OZ Minerals advises that, in the current environment of volatile exchange rates, low and volatile commodity prices and tight credit markets, it is undertaking a thorough review of all capital and operational expenditures.
The review will be ongoing and will focus on carefully managing cash balances, maximising free cashflow and ensuring that the Company is able to fund all essential operating and project-related outflows. Any material decisions that are taken will be subsequently advised to the market.
The Company’s major development project at Prominent Hill in South Australia will be completed and, as previously advised, is scheduled to be commissioned during December 2008, and the second autoclave for the Sepon copper plant is now on site prior to commissioning. However, the timing and structure of all other projects is under review.
“OZ Minerals is in the fortunate position of having a healthy balance sheet, a good cash position and an enviable suite of projects that underwrite the future growth of the Company”, said Andrew Michelmore, Managing Director and CEO of OZ Minerals.
“By closely reviewing our commitments now, we will ensure that we are in the best possible position to maintain our sound financial position and enable future development of our projects to generate growing value for our shareholders,” Mr Michelmore added.
Coober Pedy Regional Times