OZ had to respond to a price query from the ASX that questioned the reasoning for the company’s share price hitting an intraday low of $A6.68 yesterday, down from a closing price of $7.44 a day earlier.

The company’s shares closed down almost 10% yesterday to $6.71.

In its response to the query, OZ said it was aware that some analysts had been updating their modelling and reports for the company’s production and cost forecasts for 2012, in addition to 2013 expected production and costs.

The company reiterated it had previously stated that guidance at its Prominent Hill mine would be at the lower end of forecast production of 100,000-110,000 tonnes, and within a range of 130,000-150,000 ounces of gold at a C1 cash cost of $US1.10-$1.20 per pound of copper.

OZ said its final quarter and full-year operating results for 2012 could not yet be determined, but disclosed a string of issues that could impact on its financial results.

“In light of the lower commodity prices and reduced gold sales, coupled with reduced copper production and increased costs as the operations have progressed during the year, the expected operating result for the full year ending December 31, 2012 will be less than that of the corresponding previous period by more than 15%,” OZ said.

The company made note of analyst consensus for the 2012 operating results of $A344 million earnings before interest, tax, depreciation and amortisation, and $156 million net profit after tax, saying this was close to the company’s expectations.

OZ declared an 18.6% fall in annual revenue for the first half of 2012 to $514.8 million compared to $632.7 million last year.

The company will confirm its production and cost guidance for 2013 in January in its quarterly production report.

Shares in OZ were last trading up 2.4% to $6.87.