Oz Minerals, which became Australia's third largest diversified miner on July 1, said on Wednesday it could not give a market guidance about expected profit except to say it would be affected by lower commodity prices and higher production costs.
Oz Minerals has a December 31 balance date.
"As a consequence of substantially lower commodity prices, current volatility ... and generally higher production costs ... OZ Minerals' net profit after tax for 2008 is expected to be lower than that reported by each of Oxiana and Zinifex in those companies' prior financial periods," OZ Minerals said in a statement.
The company was responding to a query from the Australian stock exchange (ASX) regarding recent heavy trading in the stock.
"At this stage, it is still not possible for OZ Minerals to provide a reasonable and meaningful indication of 2008 profits for the purpose of market guidance in view of the current volatility of trading conditions and metals markets."
OZ Minerals shares were the most traded on the ASX on Wednesday, with 72.33 million units changing hands worth $46.99 million.
They retreated 10 cents, or 13.7 per cent, to close at 63 cents.
The company's share price has slid steadily in the past week, from 98.5 cents on November 12 to 73 cents on November 18.
Oz Minerals said in the statement that it could not explain the recent trading in its securities.
The company said on November 10 that potential production cuts and development delays were possibile after initiating a review of capital and operational expenditure.
It has already rescheduled operations at its Golden Grove mine in Western Australia to reduce zinc output and increase copper production.
The company has said it would dispose of its 76 per cent interest in the Menninnie Dam lead-zinc-silver exploration project in South Australia but was increasing its exposure to uranium.
OZ Minerals last Wednesday lifted its stake in Toro Energy Ltd to 51.71 per cent from 46 per cent, after taking up its full entitlement under the junior explorer's $26 million renounceable rights issue, which closed on Friday.
The rights issue fell short by 69.08 million shares out of a total 130.17 million shares, raising only $12.21 million.
Toro has the right to place the remaining shares at its discretion, including on-market, by February 6.
OZ Minerals is entitled to take up these shares if they are placed on-market, which could lift its stake to 57 per cent.
It is unclear whether OZ Minerals intends to take control of the junior company but previously indicated, during Toro's renounceable rights offer, that it did not intend to do so.
Toro and OZ Minerals were being sought for comment.
