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.




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