OZ Minerals Limited (ASX:OZL) HEFFX Highlights

OZ Minerals Limited (ASX:OZL) HEFFX Highlights

OZ Minerals Limited (ASX:OZL) HEFFX Highlights

  • Australian copper and gold miner OZ Minerals has delivered a solid second quarter production report and grown its cash pile to $625 million.
  • Cooper production rose 12 per cent from the first quarter to 28,163 tonnes and the company remains on track to meet full-year production guidance of between 105,000 tonnes and 115,000 tonnes.
  • Gold production rose 23 per cent from the first quarter to 32,136 ounces, with the miner still targeting full-year production of between 115,000 ounces and 125,000 ounces.
  • The company’s Prominent Hill mine performed well with a 17 per cent quarter-on-quarter increase in production, while the development at its Carrapateena project continues to advance.
  • OZ Minerals (OZL), which has no debt, grew its cash to $625m from $594m in the first quarter.

OZ Minerals Limited is a mining company with a focus on copper. The Company’s principal activities are the mining of copper, gold and silver, carrying out exploration activities and development of mining projects. The Company’s segments are Prominent Hill, which is engaged in mining copper, gold and silver from Prominent Hill Mine, a combined open pit and underground mine located in the Gawler Craton of South Australia; Carrapateena, which is engaged in exploration and evaluation activities associated with Carrapateena project located in South Australia; Exploration & Development, which is engaged in exploration and evaluation activities associated with other projects and includes interests in Jamaica and Chile, and joint ventures with Minotaur Exploration and Toro Energy Ltd., and Corporate Development activities, and Corporate, which is engaged in other corporate activities, including Consolidated Entity’s Group Office, other investments in equity securities and cash balances.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 7.47.

The projected upper bound is: 8.86.

The projected lower bound is: 7.87.

The projected closing price is: 8.37.

OZMINER FPO closed up 0.270 at 8.340. Volume was 22% above average (neutral) and Bollinger Bands were 14% narrower than normal.

Open      High        Low         Close      Volume
8.130      8.420      8.130      8.340      3,101,700

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period      50-period      200-period
Close:                       7.82               7.43                 7.86
Volatility:                67                  42                    46
Volume:                  2,623,315     2,213,330       2,298,660

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

OZMINER FPO gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
OZMINER FPO is currently 6.1% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of OZL.AX at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on OZL.AX and have had this outlook for the last 13 periods.

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 88.3495. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 67.68. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 52 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 168.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 2 period(s) ago.

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John Heffernan

John Heffernan is a Junior Analyst at HEFFX. John is studying Economics and is a contributor on equities at Live Trading News.

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