Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

OZ Minerals Falls After Flagging Mine Writedown: Sydney Mover

July 29 (Bloomberg) -- OZ Minerals, Australia’s third-biggest copper producer, fell to its lowest in almost two weeks in Sydney trading after flagging a mine writedown of as much as A$240 million ($222 million).

Shares in the Melbourne-based producer declined 1.9 percent to A$4.05, its lowest since July 16. Australia’s benchmark S&P/ASX 200 Index was little changed.

OZ Minerals cited lower expected copper and gold prices for the writedown at its Prominent Hill project in South Australia. Copper has plunged about 14 percent this year on concern demand will weaken as the economy slows in China, the world’s top consumer of the metal used in pipes and wires.

“With the fact that copper prices are under a bit of pressure, it’s not surprising to see that kind of writedown,” said Evan Lucas, a Melbourne-based market strategist at IG Markets Ltd. “You would expect them to fall, and fall further.”

OZ Minerals had been among companies that made final bids for Rio Tinto Group’s Northparkes, a person with knowledge of the matter said July 16. China Molybdenum Co. has agreed to pay $820 million for Rio’s 80 percent stake in the Australian copper mine, the London-based company said today.

Evolution Mining Ltd., partly owned by Australia’s biggest gold mining company, also fell after flagging a mine asset writedown of as much as A$400 million. The stock declined 1.2 percent to 82.5 cents, and had earlier slipped as much as 6 percent. It has dropped 52 percent this year.

To contact the reporter on this story: David Stringer in Melbourne at dstringer3@bloomberg.net

To contact the editor responsible for this story: Jason Rogers at jrogers73@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.