December quarter production was 36,307 tonnes of copper and 54,856 ounces of gold at C1 cash costs of US$1.305 per pound and all-in sustaining costs of $1.867/lb.
Full-year production was 124,065t of copper and 211,147oz of gold with copper production meeting the revised guidance of 120,000-135,000t and gold output meeting original guidance of 203,000-220,000oz.
C1 costs for the year were $1.30/lb with AISC of $1.897/lb, both within revised guidance.
Prominent Hill met guidance for an eighth consecutive year while the Carrapateena operation achieved a key milestone with the cave safely breaking through to the surface.
OZ managing director Andrew Cole said the performance saw the company enter 2023 with positive momentum.
Unaudited revenue for 2022 was A$1.9 billion.
Guidance for 2023 is copper production of 120,000-143,000t and gold production of 191,000-213,000oz at C1 costs of US$1.33-1.35/lb and AISC of $1.87-2.07/lb.
Chief financial officer Warwick Ransom said cost guidance took into account the first full year of cost inflation, a stronger Australian dollar assumption and higher electricity cost assumptions at the South Australian assets, which have recently come off longer-term contracts and are now operating under market rates and subject to potential electricity price volatility.
Construction of the West Musgrave nickel-copper asset in Western Australia is underway.
The project has A$1.6 billion capital costs and will produce 35,000t of nickel and 41,000t of copper per annum in the first five years at C1 costs of negative $1.10/lb to 50c/lb of nickel.
The accommodation village, known as the ‘Living Hub', was meant to be delivered, owned and operated by a third-party provider but will now be delivered under a design and construct model.
The change will require $110 million in capital funding, initially to be sourced from contingency, but will result in a reduction of operating costs of circa $170 million over 10 years.
In December, the board of OZ agreed to a $9.6 billion takeover by BHP.
Cole said the positive recommendation was made after "deep and careful consideration".
"That recommendation didn't come lightly," he said.
A shareholder vote is expected to be held in April.
Shares in OZ were flat this morning at $27.91, slightly below BHP's offer price of $28.25.
