Shares of gold and copper producer, OZ Minerals Limited (ASX: OZL), fell as much as 3% in early trade today on the back of its quarterly production report and a strategy announcement.
During the three months to 31 March 2015, total copper production was 31,160 tonnes whilst total gold production came in at 32,874 ounces.
Gold production was lower than the prior quarter as a result of lower grades and a priority shift towards copper.
Pleasingly, total copper cash costs fell from 105.5 cents to 81.5 cents per pound, with mining related costs falling sharply.
Looking ahead to the full 2015 financial year, OZ Minerals management forecast copper production between 110,000 and 120,000 tonnes, with gold production set to average between 100,000 and 110,000 ounces per annum between 2015 and 2018.
Commenting on the results OZ Minerals CEO, Andrew Cole, said, "The OZ Minerals team has focused on delivering an encouraging first quarter with below guidance costs, above guidance copper production and an improvement in safety."
In a separate statement to the market, Mr Cole announced a new company strategy.
"The resources sector and cycle is shifting rapidly," Mr Cole said in the company's ASX Media Release this morning. "OZ Minerals response is to become a leaner, highly agile and decisive Company focused on growth and creating long-term value."
Despite the copper price falling from around $US10,000 per tonne in 2010 to slightly over $US6,000 per tonne today, OZ Minerals will shift its focus to the red metal, whilst also assessing opportunistic investments in base metals and gold.
OZ Minerals Chairman, Neil Hamilton said, "A number of positive actions have already been taken over the last 90 days and the Board is, and will continue to be, supportive of decisive action."
"The Board is confident that the strategy announced today provides a clear path to creating value for our shareholders from OZ Minerals' existing assets and through the more aggressive pursuit of growth," Mr Hamilton said.
So far in 2015, OZ Minerals shares have bucked the trend in the resource sector by climbing more than 10%, whilst fellow ASX-listed gold and copper miners, Sandfire Resources NL (ASX: SFR) and Rio Tinto Limited (ASX: RIO), have fallen between 4% and 5%.
