Australia Markets closed

OZ Minerals still on acquisition hunt

Oz Minerals is hunting for acquisitions following its strongest quarterly copper production result in five years.

But the Adelaide-based miner says it hasn't been able to find suitable assets, despite weakness in the resources sector.

Managing director Andrew Cole said Oz Minerals was beginning to deliver on its growth strategy, which it announced in April, as it looks to make further cost reductions.

"While the current performance of our existing operations is encouraging at this early stage in our new strategy, several of the third party assets that we've reviewed for potential acquisition have not met the strict investment criteria we set," Mr Cole said.

"We continue to undertake due diligence on several other potential assets."

In May, Mr Cole told shareholders that the miner had cut around $44 million in costs and wanted to take advantage of the global slide in commodity prices.

He also signalled that Oz Minerals wouldn't restrict itself to copper and gold assets if it found value in other commodities.

Oz Minerals is shifting its focus toward copper and away from gold due to global demand.

During the June quarter, the company produced 32,991 tonnes of copper, its best result since 2010.

That's up nearly six per cent on its March quarter result and almost 50 per cent above its output for the same time last year.

Gold production was down nearly 25 per cent to 24,790 ounces as the company prioritised copper feed at its key prominent Hill operations in South Australia.

"The nature of the copper market meant there would inevitably be price swings but there was demand for the upsurge in production," Mr Cole said.

OZ Minerals has maintained its full year production guidance of between 110,000 and 120,000 tonnes for copper and between 100,000 and 110,000 ounces for gold.

Shares in the company were four cents, or 1.1 per cent, lower at $3.77 at 1415 AEST.