OZ Minerals Ltd.'s full-year 2019 net profit dropped to A$163.9 million, or 50.7 Australian cents per share, down 26.3% from a year-ago net profit of A$222.4 million, or 71.5 cents per share.
The results were impacted by A$24 million of realized losses on gold hedges, increased corporate costs, restructuring costs and a full-year amortization charge related to intellectual property technology.
Net revenue in the 12 months decreased by just A$10 million to A$1.11 billion due to lower copper sales as the Prominent Hill copper-gold-silver mine in South Australia transitions from its higher copper grade open-pit stockpiles, largely offset by higher Australian dollar realized copper and gold prices.
Underlying EBITDA fell to A$462.4 million from A$540.4 million.
The company declared a fully franked dividend of 15 cents per share, for fully franked dividends of 23 cents per share for the year, in line with 2018.
A recent pre-feasibility study on the OZ Minerals' and Cassini Resources Ltd.'s jointly owned West Musgrave nickel-copper project in Western Australia outlined a posttax net present value of A$800 million, discounted at 8.5%, with a 20% internal rate of return and a six-year payback period.