Oz Minerals chief executive Terry Burgess hopes to offload a controlling stake in the company’s key growth asset before departing later this year.
Mr Burgess says the company is talking to global copper producers about selling a controlling stake in its Carrapateena project in South Australia.
“Hopefully, I don’t move on too soon and hopefully we can conclude something,” he told reporters after the release of the gold and copper miner’s full year results on Wednesday.
Mr Burgess said he plans to step down from the top job within 12 months, but as yet no headhunters have been appointed.
Oz Minerals shares surged more than 12 per cent as the copper-focused producer reiterated its 2014 production guidance and said it plans to bring its Prominent Hill copper production back to around 100,000 tonnes per year.
After a tough year, Mr Burgess was encouraged by the level of interest shown in acquiring the Carrapateena project which is in a pre-feasibility phase.
“If a large producer came in it would probably make more sense for them to have the controlling interest and be the operator,” Mr Burgess said.
International players were attracted by the long-life of the project, its depth, grade and location in central South Australia, he said.
While he conceded the sale of a major asset could make the company a takeover target, he said the future level of copper production at Prominent Hill was probably not great enough to attract a global producer.
Oz Minerals expects to produce about 30,000 tonnes of copper in the first half and more in the second half, bringing it to an annual run rate of around 100,000 tonnes.
It also plans to start a third mine, Malu Open Pit, at Prominent Hill in late 2014.
At 1430 AEDT Oz Minerals shares were 43 cents, or 12.6 per cent, higher at $3.83.
Production guidance for 2014 remains at 75,000 to 80,000 tonnes of copper and 130,000 to 140,000 ounces of gold.
Oz Minerals announced a loss of $294.4 million for the 12 months to December 2013, a sharp decline from the $152 million profit recorded for 2012.
The profit result was affected by writedowns of $232 million to the value of the company’s Prominent Hill operations.
But revenue also dropped 35 per cent to $644 million due to a slide in sales volumes and lower commodity prices.
The company has also cut 200 staff and contractor positions over the past year.
Oz Minerals plans to reduce mining costs and capital expenditure at Prominent Hill and reduce expenditure at Carrapateena.
It announced a final unfranked dividend of 10 cents per share, down from 20 cents per share a year ago.
