Oz Minerals shares rally on better 2014 Oz Minerals shares have rallied more than 15 per cent as the company forecast a boost in copper and gold production after a disappointing 2013. Australia's third largest copper producer also flagged a reduction in costs and left the door open for a joint venture deal with its Carrapateena project. Managing director Terry Burgess said despite speculation Oz Minerals was running out of cash, the company did not need to sell its 18 per cent stake in Sandfire Resources. "We're very well set up for 2014," Mr Burgess told reporters after the release of the company's December quarterly production report on Wednesday. It's pleasing to be able to give a positive quarterly report, looking back over what was a challenging year that now is behind us. Oz Minerals on Wednesday revealed it had $363 million in cash at the end of 2013, down from almost $1 billion three years ago when it was looking to spend $750 million on acquisitions. Mr Burgess said analyst models showing the company burning through all of its cash this year were contingent on a low copper price. "We're still very happy with the copper price," he said. There's a lot of people out there saying $3.50 (per pound) for 2014, which is a very bullish view of copper, and we will be smiling if that occurs over the year. Still, Oz Minerals predicts first half production in 2014 will be lower than the second half, leading to a temporary dip in the cash balance early this year. The company has allocated $22 million in 2014 for exploration, with the majority spent in the Carrapateena region. During 2013 Oz Minerals produced 73,362 tonnes of copper and 128,045 ounces of gold, which was at the upper end of its guidance range. Copper and gold production is expected to increase after the company missed its production targets in the September quarter and cash costs are expected to fall further in 2014 following a blowout last year. Oz Minerals says a pre-feasibility study at Carrapateena is due to be completed in the first half of 2014, but the board has not made definitive plans for 2014. "We're very open to the way this project could be developed," Mr Burgess said. Oz Minerals shares rose 46 cents, or 15 per cent, to $3.53 at 1345 AEDT. Shares in the company have halved over the past year as the price of gold and copper waned. The company suffered a $268 million loss in the first half to June, 2013 due to a writedown of Prominent Hill following a landslip. Oz Minerals will release its full year results next month.