Disappointing Outlook for Oz Minerals' Flagship Mine; Japanese Copper Improves

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It was a rough day for Oz Minerals whose shares “fell by nearly a third on Wednesday following a disappointing outlook for its flagship mine, raising concerns over growth prospects,” reports Reuters.

“After issuing a production update, some analysts said Oz Minerals may need to acquire new mines to replace the faster-than-expected depletion of copper and gold ores from its flagship Prominent Hill mine.”

“The stock tumbled as low as A$2.11 before rebounding to A$2.63, still down 15 percent on the day.”

“Oz Minerals confirmed earlier production guidance of 70,000-75,000 tonnes of copper and 120,000-130,000 ounces of gold for 2013 and said 2014 output would be marginally higher.”

“But there were concerns that there had been no increase to resources at the Prominent Hill mine and the likelihood of finding a replacement mine in the short term was low.”

In metal price news…

On Tuesday, December 10, the day’s biggest mover was the cash price of Japanese copper, which saw a 1.7 percent increase. The price of US copper producer grade 110 rose 0.8 percent. The price of US copper producer grade 122 finished the market day up 0.8 percent per pound. The price of US copper producer grade 102 rose 0.7 percent.

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Chinese copper prices were flat for the day. Chinese copper bar saw little change in its price yesterday. The cash price of Chinese copper saw little change in its price yesterday. Chinese copper wire stayed flat. The price of Chinese bright copper scrap was essentially unchanged.

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At $7,140, the 3-month price of copper finished the market day on the LME up 0.4 percent per metric ton. Also on the LME, the cash price of primary copper inched up 0.4 percent to $7,140 per metric ton.