OZ Minerals and Asaleo Care - First Impressions from reporting

Bell Potter


OZ Minerals (OZL):  Operating cash flow $324.1m was a reduction of $105.7m compared to pcp as a result of lower concentration sales partially offset by cost reduction program. | Outlook: Copper production*105,000 to 115,000 tonnes Gold production*115,000 to 125,000 ounces Allin sustaining cost US 120c -US 130c/lb All in sustaining cost US 120c -US 130c/lb.


Asaleo Care (AHY):  On-market buy-back of up to $100m now 95% complete | Divisional EBITDA; Tissue - EBITDA down 12.8% to $63.8m, margin decline 198bps to 15.1%; Personal Care – EBITDA down 7% to $66.9M, and margin down 70bps to  36.6% (Operating costs reduced by 8% in Personal Care div). | Inventory: Inventory days increased 9 days to 162 days. | Operating cash flow fell by 28% to $85m and the cash realization was less than 100%. | Outlook: Expect low single digit profit growth in FY17 (vs FY16). Free Cash Flow guidance of $85m to $95m after program to optimise working capital levels & recycle capital into higher returning investments.



Bell Potter Securities is a leading Australian stockbroking, investment and financial advisory firm that provides a comprehensive offering of financial services to a diversified client base that includes individuals, institutions and corporations.

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.