OZ Minerals Limited (OZL) is an Australian based mining company with a focus on copper.
| Key Statistics | |||||||
| 52-Week Range | Avg. Daily Vol (3 mo) | Market Value | Dividend Yield | Float % | Target Price | Consensus Rating | Next Earnings Announcement |
| 5.79 – 16.5 | 2,085,312 | 4,880.00 | 2.2% | 97.9% | 15.45 | 3.83 | 18/02/2021 |
The company owns and operates the Prominent Hill copper-gold mine and the Carrapateena copper-gold project located in South Australia along with several equity interests in listed resource companies. While OZL produces some gold and silver, at heart it is the only pure play on copper amongst the ASX100.
The company has benefited from a rebound in copper prices from the sharp declines in March 2020 with the fundamental outlook for copper and gold remaining positive. The outlook for copper is tied to supply, particularly from Chile, as well as the speed of the economic rebound from the COVID-19 pandemic. Gold prices have benefited significantly from negative real rates globally, a weaker U.S. dollar and as a haven during times of uncertainty. Prior to 2019 the company operated largely as a single mine company focusing on Prominent Hill, however it has steadily developed a quality portfolio of assets with the Carrapateena mine coming online in late 2019 as well as the smaller Antas mine in Brazil.
In the financial year end 2019, 78% of sales related to copper, with gold comprising of 21% and 1% silver with 64% of sales were to Asia, 28% within Australia and 8% to Europe. In the half year results to 30th of June 2020, revenue relating to copper dipped to 58%, gold increased to 40% while silver remained steady at slightly above 1%. Net profit after tax for the half-year increased to $79.8 million compared with $43.9 million in the same period of 2019, a result of higher volumes accompanied by a stronger gold price. For the year-ending December 2020 revenue is forecast to edge 2% higher to $1,289.38 million before rising sharply by 28% in 2021 to $1,650.56. Earnings per share for the year ended 2020 is forecast at $0.587 before rising to $1.047 in 2021 that would see the company trade on forward P/E multiples of 25.1 and 14.1 respectively.
The average target price of analysts covering the stock is $15.45 with 56% of analysts rating the stock as a buy, compared to 17% as a sell and 28% as a hold.
