PERTH (miningweekly.com) – Copper and gold miner Oz Minerals has swung back into the black in the six months ended June, with the miner reporting an after-tax profit of A$51.8-million, compared with a loss of A$7.4-million in the previous corresponding period.

Underlying net profit after tax also increased to A$51.8-million, compared with an underlying net loss after tax of A$14.3-million reported in the 2014 interim period.

The company on Wednesday said production for the six months under review had exceeded guidance for both copper and gold, with 64 151 t of copper and 57 664 oz of gold delivered.

The higher production lifted revenues to A$390.1-million, compared with the A$351-million reported in the previous corresponding period, despite a decline in the average US copper and gold price.

Oz Minerals noted that contained copper metal-in-concentrate sold during the period under review was 48.4% higher than the previous corresponding period, while contained gold sold was 14.8% lower. The significant increase in contained copper and the lower contained gold-in-concentrate sold, was owing to the processing of higher-value copper ore over gold ore during the half-year.

Meanwhile, total direct mining costs for both the openpit and underground mining operations at the Prominent Hill mine, in South Australia, deceased by A$57.3-million during the half-year, owing to a reduction in waste material mined from the openpit, which was 47% lower than in the comparable period.

Reduced employee numbers also resulted in a A$1.1-million cost saving, the company added.

Oz Minerals, at the start of the year, launched a A$44-million cost saving initiative, which included the divestment of a stake in Sandfire Resources, the restructuring and relocation of its corporate offices, initiatives to enhance the Carrapateena resource, in South Australia, and the suspension of the Carrapateena sales process.

In May, the company said that it would consider buying smaller and distressed assets in South Australia to support production at the Prominent Hill mine and to diminish the risks associated with a one-asset company.

Oz Minerals expected to produce between 110 000 t and 120 000 t of copper and between 100 000 oz and 110 000 oz of gold for the full year.