oz minerals uk roadshow presentation 2011 · 2011. 10. 25. · oz minerals. uk roadshow. ... (“oz...
TRANSCRIPT
OCTOBER 2011WWW.OZMINERALS.COM
OZ MINERALSUK ROADSHOW
OZ MINERALS • PAGE 2
DISCLAIMER
This presentation has been prepared by OZ Minerals Limited (“OZ Minerals”) and consists of written materials/slides for a presentation concerning OZ Minerals. By reviewing/attending this presentation, you agree to be bound by the following conditions.
No representation or warranty, express or implied, is made as to
the fairness, accuracy, or completeness of the information, contained in the presentation or of the views, opinions and conclusions contained in this material. To the maximum extent permitted by law, OZ Minerals and its related bodies corporate
and affiliates, and its respective directors, officers, employees, agents and advisers disclaim any liability (including, without limitation any liability arising from fault or negligence) for any loss or damage arising from any use of this material or its contents, including any error or omission there from, or otherwise arising in connection with it.
Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projections for sales growth, estimated revenues and reserves,
targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels,
the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe”
and “envisage”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future
and may be outside OZ Mineral’s control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign
currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation.
Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements and intentions which speak only as at the date of the presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, OZ Minerals does not undertake any obligation to publicly release any updates or revisions to any forward looking statements contained in this presentation, whether as a result of any change in OZ Minerals expectations in relation to them, or any change in events, conditions or circumstances on which any such statement is based.
Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified.
OZ MINERALS • PAGE 3OZ MINERALS • PAGE 3
SNAPSHOT
OZ MINERALS • PAGE 4
OZ MINERALS
WHY INVEST?•
Highly regarded, strongly performing Australian copper asset in Prominent Hill.
•
Strong operating cash flows –
$388 million for first half 2011.
•
Active capital management –
recent capital return and current buy-back.
•
Significant cash balance, no debt –
actively looking for value adding acquisitions.
•
Developing project pipeline –
Carrapateena copper project.
•
Major exploration campaign in new copper province around Prominent Hill.
•
Paying dividends –
30-60% of normal operating profits.
•
Experienced management team.
•
Leverage to copper plus gold credits.
Our strategy
OZ MINERALS • PAGE 5
OZ MINERALS -
STRATEGYWhy invest?
•
Copper focus.
•
Achieving consistent excellence in performance.
•
Building a project pipeline.
•
Major exploration commitment.
•
Capital management discipline.
OZ MINERALS • PAGE 6
OZ MINERALS -
SNAPSHOT•
Share price -
$11.25.
•
Market capitalisation -
$3.5 billion.
•
Issued share capital -
316.2 million.
•
Shareholders:
Institutional 66%
Retail 34%
Australian 60%
Offshore 40%
•
Equity investments
~42% of Toro Energy
~20% Sandfire
Resources
~13% IMX Resources
Prominent Hill copper operation•
100,000t to 110,000t per annum copper plus gold by-product credits.
•
In production since 2009.
Carrapateena•
Newly acquired significant copper deposit –
exploration and studies underway to bring project on by 2017-18
Growth strategy•
Looking to deploy cash balance for value adding opportunities -
$750 million allocated for potential M&A.
•
Exploration -
$60 million program underway to discover more ‘Prominent Hills’.
•
Working to develop Carrapateena exploration project.
OZ MINERALS • PAGE 7OZ MINERALS • PAGE 7
FINANCIAL OVERVIEW
OZ MINERALS • PAGE 8
H1 2011 FINANCIAL OVERVIEW•
Strong revenues and cash flow for first half 2011
•
Record revenue from Prominent Hill of $632.7 million.
•
EBITDA of $384.2 million.
•
Underlying NPAT of $189.1 million.*
•
Statutory NPAT of $113.9 million.**
•
Cash flow from operations of $388.3 million.
•
Significant cash balance
•
$905.6 million at 30 June 2011.
•
Increased returns to shareholders
•
Dividend –
30 cents per share H1 -
$97 million, dividend yield 6.5%.
•
Capital return -
$389 million paid in June 2011.
* excluding impairment & litigation settlement.** major variances include FX, litigation settlement expense, Toro impairment, Impairment reversal in 2010.
OZ MINERALS • PAGE 9
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11
5,500
6,500
7,500
8,500
9,500
10,500
Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11
US$/t A$/t
0.95
1.00
1.05
1.10
Jan-11 Mar-11 May-11 Jul-11 Sep-11
A$/US$
A$/US$ Average A$/US$
MARKETSCopper price
Source: Bloomberg
Gold price
Source: Bloomberg
Share price
Source: Bloomberg
A$/US$
1,100
1,300
1,500
1,700
1,900
Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11
US$/oz A$/oz
$ $
A$
OZ MINERALS • PAGE 10OZ MINERALS • PAGE 10
OPERATIONS OVERVIEW
OZ MINERALS • PAGE 11
SOUTH AUSTRALIA
•
Very favourable mining jurisdiction.
•
Close to road and rail.
•
Grid power to site.
•
Water supply.
•
Export routes via Darwin and Adelaide.
•
Highly competitive shipping times.
•
Access to extensive, 7,000km2, area of exploration ground (including IMX JV ground).
OZ MINERALS • PAGE 12
PROMINENT HILL SITE•
Commissioned in February 2009.
•
Flat terrain.
•
Fly in fly out workforce –
competitive rosters and conditions, four year employee agreement in place.
•
Workforce of 1000.
•
High standard accommodation.
•
Current operation open pit.
•
Underground being developed and on track to commence Q1 2012.
TAILINGS DAM
MALU PIT
ROM PAD PROCESSING PLANT
VILLAGE
ANKATA DEPOSIT AREA
NORTHERN WASTE DUMP
SOUTHERN WASTE DUMP
OZ MINERALS • PAGE 13
PROMINENT HILL PRODUCTION
Product: High grade (~50% Cu), high quality, copper concentrate.
Production H1 2011: 53,725t contained copper, 86,129oz gold.
Production guidance 2011:
Contained copper 100,000t to 110,000t.
Contained gold 150,000oz to 160,000oz.
Mine and Plant: Open pit, mine, crush, grind, flotation.
Cash costs: Competitive C1 cash costs US71.8c/lb for Q3 2011.
C1 cost guidance 2011: <US70c/lb.
Workforce: Approximately 1,000 (including contractors).
OZ MINERALS • PAGE 14
PROMINENT HILL –
Q3 2011 UPDATE
•
Good throughput, recovery.
•
Strong copper production.
•
Lower gold grades responsible for lower production.
PROMINENT HILL PRODUCTION STATISTICS JUN QTR
'11SEP QTR
'11YTD '11
MINED ORE (TONNES) 2,840,117 2,807,269 9,121,697
WASTE (TONNES) 15,434,750 14,220,747 43,417,322
MINED GRADE COPPER (%) 1.20 1.15 1.10
GOLD (G/T) 0.52 0.47 0.52
ORE MILLED (TONNES) 2,431,303 2,484,882 7,449,020
MILLED GRADE COPPER (%) 1.27 1.21 1.20
GOLD (G/T) 0.72 0.58 0.66
RECOVERY COPPER (%) 90.5 90.8 90.7
GOLD (%) 78.1 78.2 77.8
COPPER
CONCENTRATE PRODUCED
TONNES 51,731 49,804 151,062
CONTAINED
METAL
IN
CONCENTRATES
COPPER (TONNES)
28,017 27,217 80,942
GOLD (OZ) 44,219 36,064 122,193
TOTAL CONCENTRATE SOLD
(DM TONNES) 64,737 40,999 152,062
C1 CASH COSTS US CENTS PER LB 56.1 71.8 65.9
OZ MINERALS • PAGE 15
UNDERGROUND DEVELOPMENT –
Q3 2011 UPDATE
• Excellent progress on underground development.
• Orebody
accessed and first level commenced.
• Raise boring of ventilation underway, paste fill commenced.
• On track for first ore to be produced from stoping by Q1 2012.
• Full mining rates (1.2Mtpa) by Q3 2012.
• Contributes 25,000t copper and 12,000oz gold per annum.
• Will enable production of 100,000t to 110,000t copper to be maintained.
• Pre-production capital increased to $148 million (<10% increase) due mainly to higher mining costs and extra plant requirements.
OZ MINERALS • PAGE 16OZ MINERALS • PAGE 16
GROWTH
OZ MINERALS • PAGE 17
NEAR MINE EXPLORATION
•
Now drilling from underground.
•
Munda
zone drill out 2011.
•
Decline extension to provide access beneath pit in 2012.
•
Under pit resource drilling 2012/2013.
•
Aim to add 1-3 years mine life from immediate near-
mine program.
•
Deeper infill drilling to follow with access.
OZ MINERALS • PAGE 18
UNDERGROUND DRILLING -
CONCEPTUAL TIMING OF DRILL PROGRAMS
Plan view
ANKATA
MALU
MUNDA
Remaining Resource tested beyond 2013
2013
2012
2011-12
2012-13
2012-2013
OZ MINERALS • PAGE 19
PROMINENT HILL Q3 DRILLING RESULTSPROMINENT HILL LONG SECTION 2011
OZ MINERALS • PAGE 20
REGIONAL EXPLORATION –
NEW MINERAL PROVINCE
•
Sizeable exploration program.•
Exploring for new ‘Prominent Hills’.•
Large, approximately 7,000km2
tenement area-
4,000km2
OZ Minerals-
3,000km2
IMX JV•
$17 million spent on regional exploration in H1.
•
Detailed geophysical surveys undertaken, more in progress.
•
Three drill rigs dedicated to the OZ Minerals regional program and two rigs for IMX JV exploration.
•
Many holes have intersected IOCG alteration.
•
Some wide intervals of low-grade copper mineralisation.
•
Program continues.
EL4390
EL3387
EL4446
EL3730
EL3730
EL3518
EL3729
EL3445
EL3830
EL4390
EL4025
EL4429
EL4429
EL4132
EL3795
EL4283
EL4429
Gravity
OZ Minerals tenements
IMX tenements
Coober
Pedy
20km
Airborne Magnetic Surveycompleted in Q4
Hallifax
Danae HillMetis
NeptuneCressida
Epsilon
Rouse
Taurus
ArapilesShadwell
IP Surveys in Progress
Near Mine
Future OZ Minerals Prospects
IMX JV target areas
PerseusBlue Duck
Bluebird
Prominent Hill
OZ MINERALS • PAGE 21
CARRAPATEENA COPPER –
GOLD DEPOSIT IN SOUTH AUSTRALIA
• Acquired in May 2011.
• Large IOCG deposit –
similar to Prominent Hill.
• In exploration phase, drilling underway.
• An initial Inferred Resource of 203Mt at 1.31% copper, 0.56g/t gold and 270ppm U3
O8
in the southern area of the Carrapateena deposit reported by OZ Minerals.
OZ MINERALS • PAGE 22
CARRAPATEENA COPPER –
GOLD EXPLORATION SOUTH AUSTRALIA –
Q3 2011 UPDATE
• Good progress on Carrapateena.• Native title agreement reached for
exploration activity.• Exploration drilling commenced.• Exploration camp construction
underway.• Northern target-area first exploration
priority.• Infill of southern area.• Scoping studies* commencing.
Mining options: sub-level open stoping, sub-level caving, block caving and hybrid.
Mining inventories and rates being developed.
Production schedules/early stage costs being investigated.
* These are early stage studies which occur before pre-feasibility and feasibility studies and any subsequent decision to mine.
OZ MINERALS • PAGE 23
CARRAPATEENA DEPOSIT -
INITIAL INFERRED RESOURCE TO SOUTH
0m 250m
Mineralisation not well understood, potential for
extension to the east
Exploration & Inferred Resource
status area
Exploration area
Chalcopyrite shell in yellow
Exploration & Inferred Resource status areaExploration area
Historic drillhole
collar
Historic drillhole
trace
N
0m 250m
Main depositPotential for
extension at depthMineralisation
open to the east
Target range:
25-45Mt @ 1% Cu, 0.4g/t Au, 140ppm U3
O8
, 4g/t Ag
Inferred resource:
203Mt @ 1.31% Cu, 0.56g/t Au, 270ppm U3
O8
, 6g/t Ag
OZ MINERALS • PAGE 24
CARRAPATEENA CROSS SECTION –
6543400N LOOKING NORTH –
HIGH COPPER GRADES
• CAR073 –
905m @ 2.17% Cu, 0.89g/t Au from 506m (incl. 82m @ 4.78% Cu, 1.13 g/t Au from 518m)
• CAR031W1 –
410m @ 1.88% Cu, 1.20 g/t Au from 582m (incl. 134m @ 2.85% Cu, 1.48g/t Au from 858m)
• NB Holes drilled by previous owners
±50m clip
Bornite
shell in blue
Chalcopyrite shell in yellow
0.5 –
1% Cu1 –
2% Cu2 –
3% Cu>3% Cu
Cu values
PLAN N
0 200m
-100
-500
-1000
-1500
OZ MINERALS • PAGE 25
MINING OPTIONS STUDY
Options:• Block caving.• Inclined sublevel caving.• Selective mining. • Stoping at higher levels, then caving.
Lower mining costs
Lower development costs
<$10/t $10‐20/t $20‐50/t
Block
cavingSublevel
cavingSublevel
open stoping
Visual representation of the Carrapateena deposit
OZ MINERALS • PAGE 26
CARRAPATEENA CONCEPTUAL PROJECT SCHEDULE
2011 2012 2013 2014 2015 2016 2017
Exploration drilling to complete initial Inferred Resource, 10,000m
Option studies for mining
Phase II exploration drilling to move to Indicated Resource
Geotechnical drilling
Pre-feasibility
Exploration shaft
Feasibility study
Construction
OZ MINERALS • PAGE 27
•
COMMODITY-
Copper or copper with gold.
•
SCALE-
50,000t –
150,000tpa production or future production potential.
•
JURISDICTION-
Global “low”
to “medium”
risk countries.
•
TERMS-
100% or with partners depending on project.
•
STAGE-
Advanced exploration, feasibility study, development, in production.
BUSINESS DEVELOPMENT –
ACTIVELY LOOKING FOR OPPORTUNITIES
OZ MINERALS • PAGE 28
SUMMARY• High quality copper asset at Prominent Hill
Consistent copper production
New underground development
Aggressive exploration program to extend mine life at Prominent Hill -
near mine and regional• Significant cash holding
$750 million available for M&A• Active business development
Clear strategy
Disciplined approach
Flexibility of cash• Capital management program
Capital return 120 cents per share or $388.6 million completed
Share consolidation completed
Share buyback up to $200 million underway, 40% complete.• Dividend stream
2011 Interim dividend of 30 cents per share –
paying out 30-60 percent of normal operating profits
• Strongly performing commodities
Good outlook for copper and gold
APPENDICES
1.
NORTH WALL CUT-BACK2.
CARRAPATEENA
3.
FINANCIAL INFORMATION
OZ MINERALS • PAGE 30
DESIGN OF FINAL PIT
• Geotechnical studies complete.• Re-optimisation
using flatter wall angles to increase stability.
• Additional 30Mbcm over five years.
CROSS SECTION –
NORTH-SOUTH
Complete
August 2012
June 2014
October 2017(Stock piles continue to be processed after mining of open-cut complete)
• Remaining life of mine strip ratio now 5.5:1.• Approximately $150 million extra in NPV terms.• $3/t milled extra mining costs.
NB: Deferred mining provision to be lower than planned due to higher strip ratio.
OZ MINERALS • PAGE 31
CARRAPATEENA COMPARABLE WITH OTHER GLOBAL BLOCK CAVES
Cu/Au grades and relative deposit size global block caves (Mt)
Red Chris
Grasberg GBCGrasberg DOZNorthparkes Lift 2
Bingham Canyon SE mine
Grasberg IOZ
Northparkes E48
Northparkes Lift 1
Bingham Canyon NE mineWafi-Golpu
Carrapateena
Ridgeway Deeps
Oyu-Tolgoi Hugo North Lift
Cadia East
0.00
0.25
0.50
0.75
1.00
1.25
1.50
1.75
2.00
0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00
Au g/t
Cu %
Source: OZ Minerals research* NB: Carrapateena based on target range not Resource or Reserve
Operating mines
Development project
Size = Reserves Mt
OZ MINERALS • PAGE 32
-
10
20
30
40
50
60
70
80
90
EVc/
lb C
uEq
Advanced Projects / Producers
COMPETITIVE ACQUISTION
Exploration / Development Construction / Production
OZ
Min
eral
s/Ca
rrap
atee
na
OZ MINERALS • PAGE 33
BLOCK CAVING INCREASINGLY COMMON
Source: New Gold
OZ MINERALS • PAGE 34
CARRAPATEENA CROSS SECTION – 6543300N LOOKING NORTH
• CAR051W1 –
903m @ 2.15% Cu, 0.66 g/t Au from 608m (incl. 169m @ 4.30% Cu, 0.74 g/t Au from 1174m).
• CAR050 –
905m @ 2.08% Cu, 0.98 g/t Au from 487m (incl. 75m @ 4.63% Cu, 1.10 g/t Au from 1203m).
±50m view
Bornite
shell in blue
Chalcopyrite shell in yellow
0.5 –
1% Cu1 –
2% Cu2 –
3% Cu>3% Cu
Cu values
PLAN N
0 200m
-100
-500
-1000
-1500
OZ MINERALS • PAGE 35
Variance Analysis - Underlying NPAT, H1 2011 vs H1 2010
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
230.5 125.8 37.8 (172.0) 222.1 (17.0) (21.4) (10.9) (4.7) 21.0 189.1
H1 2010 CopperPrice
GoldPrice
FX SalesVolume
Cash NonCash
Exploration/Expl. Impair't
IncomeTax
H1 2011
A$M
UNDERLYING NPAT
Increase in copper price
(32%) and gold price (25%).
Increase in A$/US$ 16%.
Decrease in copper sales due
to lower processed
grades.
Increased mining costs due to diesel and increased
volumes partially offset
by interest income.
Reduction in deferred mining
credit and increase in depreciation,
partially offset by increased inventory
adjustment.
MARKET DRIVEN CONTROLLABLE
Increase in exploration activity partially offset by
exploration impairment in 2010.
OZ MINERALS • PAGE 36
C1 COST GUIDANCE Q1 2011 –
FOREIGN EXCHANGE IMPACT
Previous C1 cost guidance
<60 US cents
Sensitivity to 1 US cent movement in A$:US$
(12 months) 1.8 US cents
Revised C1 cost guidance
<70 US cents
Sensitivity to 1 US cent movement in A$:US$
(9 months)
1.3 US cents
Previous guidance was issued at analyst consensus rates of A$:US$ 0.96 for FY11, current guidance issued at current consensus A$:US$ 1.01. Current spot rate 1.05.
OZ MINERALS • PAGE 37
INCOME TAX –
H1 2011
• Tax losses fully sheltered first half earnings –
no tax payable for the half.
−
Utilisation of losses in the first half partially offset by upfront deductions on Carrapateena purchase.
• Unrestricted tax losses of $14.8 million (tax effected) remain as at 30 June 2011
−
Unrestricted losses expected to be exhausted in the second half,
resulting in a provision for tax in 2011 and associated tax payment in June 2012.
−
Tax payments in 2012 would allow franking of dividends.
OZ MINERALS • PAGE 38
2011 SENSITIVITIES –
H1 2011
Sensitivities of EBIT in 2011*
A$/US$ +/-
1c Copper +/-
5% Gold +/-
5%
$5.3 million $23.3 million $5.5 million
Prices as at 30 June 2011
Copper US$4.22/lb
Gold US$1,507/oz
A$/US$ 1.0683* Sensitivities are for remaining 6 months of 2011.
OZ MINERALS • PAGE 39
EXPLORATION
•
Exploration program primarily focused on Prominent Hill near mine and regional targets.
•
Carrapateena exploration program to commence in H2 2011.
•
Approval of underground exploration decline, funding to come from existing 2011-2012 budget.
•
Cambodia in fill drilling in progress.
2011 H1 Exploration expense
Prominent Hill - Near mine, $8m
Prominent Hill -
Regional , $13m
IMX - JV, $4m
Cambodia, $3m
Other, $6m
OZ MINERALS • PAGE 40
INCOME STATEMENT –
CONTINUING OPERATIONS
•
Consistent good production and cost performance from Prominent Hill.•
Appreciation of the A$/US$ negatively impacted US$ denominated cash balances.•
Increase in exploration spend in line with strategy to increase life of Prominent Hill operations.
A$M H1 2011 H1 2010
Revenue 632.7 589.9 Cost of goods sold (210.8) (190.7)Net foreign exchange (loss)/gain (32.7) 40.8 Exploration expense (33.6) (18.2)Other expenses (24.5) (23.6)
Underlying EBITDA 331.1 398.2 Litigation settlement expense (60.0) -Impairment (15.2) 190.4 EBITDA 255.9 588.6
Depreciation and amortisation (83.3) (66.8)EBIT 172.6 521.8
Net financing income 20.7 10.2 Income tax expense (79.4) (160.4)NPAT from continuing operations 113.9 371.6 Underlying NPAT from continuing operations 189.1 230.5
Includes raw materials, consumables, direct employee costs, movements in inventory,
freight and royalties
Regional and near mine exploration, excludes capitalised
resource development
Corporate and site G&A
Impairment of investment in Toro
Statutory tax charge, utilisation of losses results in no cash tax
payable in relation to the first half result
OZ MINERALS • PAGE 41
Cash flow for the half year - June 2011
700
900
1,100
1,300
1,500
1,700
1,900
2,100
1,334.2 669.3 (267.2) (44.2) (33.6) (7.4) 13.8 1,664.9 (241.2) (129.5) (388.6) 905.6
OpeningCash
Receipts from
Customers
Payments tosuppliers
andemployees
PP&Eand
capitalisedexploration
Exploration
FXon cashbalances
Other Operatingcash
balance
AcquisitionsDisposals
Dividend CapitalReturn
ClosingCash
(A$M)
CASH FLOW 2011
OZ MINERALS • PAGE 42
BALANCE SHEET
•
Balance sheet remains strong with significant cash holdings and no debt.
•
Post balance date OZ Minerals entered into US$200 million debt facility with four relationship banks, facility provides prudent financing flexibility in short to medium term.
Decrease in cash balance from December due to payments for Carrapateena and distributions
to shareholders
Includes investment in Carrapateena and Sandfire
shareholding
Includes class action settlement and GST on Carrapateena
Increase due to utilisation of losses.
A$M
Consolidated
Jun'11
Consolidated
Dec '10
AssetsCash 905.6 1,334.2 Receivables 172.7 180.9 Inventories 259.7 259.5 Other 14.4 8.0 Investments & exploration assets 513.3 316.2 Property plant & equipment 1,245.1 1,288.1 Total Assets 3,110.8 3,386.9
LiabilitiesCreditors 147.4 64.6 Net deferred tax liability 94.2 14.8 Provisions 18.6 16.5 Total Liabilities 260.2 95.9 Net Assets 2,850.6 3,291.0
Investor contact:Natalie WorleyHead of Investor & External [email protected]
THE INFORMATION IN THIS PRESENTATION WHICH REFERS TO MINERAL RESOURCES AND EXPLORATION RESULTS AT CARRAPATEENA IS BASED IN INFORMATION COMPILED BY STUART MASTERS WHO IS A MEMBER OF THE AUSTRALASIAN INSTITUTE OF MINING AND METALLURGY (AUSIMM) (108430). STUART MASTERS IS EMPLOYED BY CS-2 PTY LTD AND IS A CONSULTANT TO OZ MINERALS. HE HAS SUFFICIENT EXPERIENCE WHICH IS RELEVANT TO THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITY WHICH HE
IS UNDERTAKING TO QUALIFY AS A COMPETENT PERSON AS DEFINED IN THE 2004 EDITION OF THE ‘AUSTRALIAN CODE FOR REPORTING OF EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES. STUART MASTERS CONSENTS TO THE INCLUSION IN THE REPORT OF THE MATTERS BASED ON HIS INFORMATION IN THE FORM AND CONTEXT IN WHICH IT APPEARS.WITHIN THIS PRESENTATION REFERENCES TO EXPLORATION RESULTS RELATING TO PROMINENT HILL ARE BASED ON INFORMATION COMPILED BY MR MARCEL VAN ECK MSC WHO IS A FULL-TIME EMPLOYEE OF OZ MINERALS, IS A MEMBER OF THE AUSTRALIAN INSTITUTE OF GEOSCIENTISTS AND HAS SUFFICIENT EXPERIENCE RELEVANT TO
THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITIES UNDERTAKEN TO QUALIFY AS A COMPETENT PERSON AS DEFINED BY THE JORC CODE (2004). MR VAN ECK HAS CONSENTED TO THE
INCLUSION OF THE MATERIAL IN THE FORM AND CONTEXT IN WHICH IT APPEARS.ALL OTHER REFERENCES TO EXPLORATION RESULTS WITHIN THIS PRESENTATION/STATEMENT ARE BASED ON INFORMATION COMPILED BY MR A HOUSTON BSC WHO IS A FULL-TIME EMPLOYEE OF OZ MINERALS, IS A MEMBER OF THE AUSTRALIAN INSTITUTE OF GEOSCIENTISTS AND HAS SUFFICIENT EXPERIENCE RELEVANT TO
THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO
THE ACTIVITIES UNDERTAKEN TO QUALIFY AS A COMPETENT PERSON AS DEFINED BY THE JORC CODE (2004). MR HOUSTON HAS CONSENTED TO THE INCLUSION OF THE MATERIAL IN THE FORM AND CONTEXT IN WHICH IT APPEARS.