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Diggers & Dealers Forum - August 2005 A Unique Opportunity A Unique Opportunity Diggers & Dealers Forum, August 2005 Diggers & Dealers Forum, August 2005 Len Jubber, CEO Len Jubber, CEO Diggers & Dealers Forum - August 2005

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Diggers & Dealers Forum - August 2005

A Unique Opportunity

Diggers & Dealers Forum, August 2005 Len Jubber, CEO

A Unique Opportunity

Diggers & Dealers Forum, August 2005 Len Jubber, CEO

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Diggers & Dealers Forum - August 2005

A Unique Opportunity

Diggers & Dealers Forum, August 2005 Len Jubber, CEO

A Unique Opportunity

Diggers & Dealers Forum, August 2005 Len Jubber, CEO

NOTES : SLIDE 1

  • It is a pleasure to deliver my first presentation since joining

Perilya in mid May.

  • Prior to that I took the opportunity to evaluate a number of

CEO opportunities, in much the same way as any of you would, prior to making an investment decision.

  • Having made my personal investment decision, it is now my

challenge to effectively convey to others the latent value I recognised in Perilya.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

SLIDE 2 SLIDE 2

Our potential About us Our focus Our approach Summary

Agenda

Introduction

SLIDE 2 SLIDE 2

Our potential About us Our focus Our approach Summary

Agenda

Introduction

NOTES : SLIDE 2

  • In my presentation I will :
  • expand on the potential as I see it;
  • provide an overview on Perilya;
  • highlight the key aspects of the business we will focus
  • n;
  • give an insight into how we will approach the

challenge; and finally

  • summarise the outlook for the next six months.
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SLIDE 4

Diggers & Dealers Forum - August 2005

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

SLIDE 3 SLIDE 3

Perilya

  • A unique opportunity
  • Major zinc & lead producer
  • Favourable zinc and by-product markets
  • Emerging gold producer
  • Extensive exploration portfolio
  • Strong balance sheet
  • Talented team - under new leadership

Our Potential

SLIDE 3 SLIDE 3

Perilya

  • A unique opportunity
  • Major zinc & lead producer
  • Favourable zinc and by-product markets
  • Emerging gold producer
  • Extensive exploration portfolio
  • Strong balance sheet
  • Talented team - under new leadership

Our Potential

NOTES : SLIDE 3

  • Seven internal & external factors collectively present Perilya

with a unique opportunity to build shareholder value.

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Diggers & Dealers Forum - August 2005

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

SLIDE 4 SLIDE 4

  • Produce 130,000t zinc & 60,000t lead p.a.
  • Revenue stream A$200 million in 2004/05
  • Proven & internationally recognised

mineralised system at Broken Hill

  • Numerous exploration prospects

Major zinc & lead producer

Our Potential

SLIDE 4 SLIDE 4

  • Produce 130,000t zinc & 60,000t lead p.a.
  • Revenue stream A$200 million in 2004/05
  • Proven & internationally recognised

mineralised system at Broken Hill

  • Numerous exploration prospects

Major zinc & lead producer

Our Potential

NOTES : SLIDE 4

  • Perilya is the 3rd largest zinc producer in Australia and Broken

Hill is around the 10th largest zinc mine in the world.

  • The coarse concentrate is highly sought after by smelters.
  • Conducting feasibility study on Potosi ore body to the north, and

within next six months moving to feasibility level on the North Mine below 15 Level and drilling at Stirling Vale in the south, of Broken Hill.

  • Zinc & lead exploration prospects at Broken Hill, Flinders,

Bangemall & Rockhampton.

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Diggers & Dealers Forum - August 2005

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Zinc Market

  • Zinc price currently 20%

above long term average

  • Favourable fundamentals
  • Small number of projects in

global development pipeline

  • Major producers limiting new

production preferring low inventory levels

Our Potential

Zinc & Lead LME Spot Price 400 800 1200 1600 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05

US$/tonne Zinc Lead

SLIDE 5 SLIDE 5

Zinc Market

  • Zinc price currently 20%

above long term average

  • Favourable fundamentals
  • Small number of projects in

global development pipeline

  • Major producers limiting new

production preferring low inventory levels

Our Potential

Zinc & Lead LME Spot Price 400 800 1200 1600 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05

US$/tonne Zinc Lead

NOTES : SLIDE 5

  • Current inventory level of 600,000 tonnes equivalent to only 6

weeks global consumption.

  • China, which is driving much of the commodity cycle, has been

a net importer over recent quarters.

  • Previously low zinc price limited interest in new projects and

hence few projects in global pipeline.

  • Number of these prospects are located in higher cultural /

geopolitical risk areas.

  • Zinc generally seen as a lagging commodity.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

SLIDE 6 SLIDE 6

  • Contribution from lead & silver up 20%
  • US$0.21/lb deduction from the zinc cash cost

during 2004/05 – up from US$0.12/lb

Broken Hill

Growing contribution from by-products

Our Potential

SLIDE 6 SLIDE 6

  • Contribution from lead & silver up 20%
  • US$0.21/lb deduction from the zinc cash cost

during 2004/05 – up from US$0.12/lb

Broken Hill

Growing contribution from by-products

Our Potential

NOTES : SLIDE 6

  • Contribution from lead and silver production has increased by

20%, largely due to increasing grade and recovery, coupled with increased spot prices.

  • Higher lead production emanating from the lower lead lode in

Southern Operations.

  • Increased silver production due to the ore feed from the North

Mine which typically grades 3 times higher than the Southern Operations.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

SLIDE 7 SLIDE 7

  • First gold production from

Daisy Milano in June quarter

  • Resource drilling &
  • ptimisation study
  • Four gold exploration

projects

1. Daisy Milano 2. Moyagee 3. Holleton 4. Honeymoon Well 5. Kanowna West

Our Potential

Emerging Gold Producer

NOTES : SLIDE 7

  • High grade Daisy Milano project 50km outside Kalgoorlie, likely

to average over 1,000 oz per vertical metre.

  • Targeting 60-70,000 oz per annum.
  • Resource drilling and optimisation to be completed prior to

year end.

  • High grade resource at Moyagee 223,000 oz.
  • Perilya also own 8% of Gleneagle who are endeavouring to

reopen the Fortnum gold mine.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

SLIDE 8 SLIDE 8

  • Primarily in Australia
  • Located in proven mineralised

systems

  • Range of organic growth
  • pportunities

Our Potential

Extensive Exploration Portfolio

1, 7, 8, 10 9, 12 2, 3, 4, 5, 6 11

  • Zinc, Lead, Silver
  • Copper
  • Gold
  • Nickel

NOTES : SLIDE 8

  • Perilya has base metal and gold assets in numerous proven

mineralised systems in Australia.

  • Also have the Tampang Cu-Au project in Malaysia.
  • These provide the opportunity for growth without having to

compete for external projects.

  • Our objective is to more rapidly generate greater value from

these assets.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

SLIDE 9 SLIDE 9

  • A$21m cash & deposits
  • A$12m debt
  • A$10m listed & non listed investments
  • A$115m shareholder funds
  • A$18m un-drawn debt facility

Our Potential

Strong Balance Sheet

as at 30 June 2005

SLIDE 9 SLIDE 9

  • A$21m cash & deposits
  • A$12m debt
  • A$10m listed & non listed investments
  • A$115m shareholder funds
  • A$18m un-drawn debt facility

Our Potential

Strong Balance Sheet

as at 30 June 2005

NOTES : SLIDE 9

  • Essentially zero net debt following repayment of US$15m

convertible note loan in the June quarter.

  • Gearing down to 9%, and
  • A$18m un-drawn debt facility.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

SLIDE 10 SLIDE 10

Talented team – new leadership

  • Leverage off existing asset base & market cap
  • Expand existing capability – people & systems
  • Responsive team
  • Opportunity for change

Our Potential

SLIDE 10 SLIDE 10

Talented team – new leadership

  • Leverage off existing asset base & market cap
  • Expand existing capability – people & systems
  • Responsive team
  • Opportunity for change

Our Potential

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… NOTES : SLIDE 10

  • I would like to take this opportunity to pay tribute to Tim Clifton

who, over the past 17 years has created this platform for growth.

  • Key ingredient will be expanding the capability of the
  • rganisation.
  • Have found a refreshing eagerness from employees to respond

to the challenge.

  • A change in leadership presents the opportunity to take a fresh

look at the way we work and find new better ways to achieve our goals – we will not miss that opportunity.

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Diggers & Dealers Forum - August 2005

SLIDE 11 SLIDE 11

F

About Us

Safety

10 20 30 40 2003 2004 2005 per million hours worked

Lost Time Injury Frequency Rate Medically Treated Injury Frequency Rate

NOTES : SLIDE 11

  • Perilya has set itself the target of achieving a 20% year on year

improvement in injury frequency rates.

  • It has generally achieved this target, but regrettably also incurred

a fatality at Broken Hill in 2002.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

SLIDE 12 SLIDE 12

Issued Shares : 186,522,239 million shares (12 million unlisted options) Share Price : $0.70 Market Cap : $131 million Average daily turnover : 650,000 shares/day (H1 2005) Largest Shareholders :

Korea Zinc Group 10.34% Acorn Capital 9.16%

About Us

Share Register

as at 30 June 2005

SLIDE 12 SLIDE 12

Issued Shares : 186,522,239 million shares (12 million unlisted options) Share Price : $0.70 Market Cap : $131 million Average daily turnover : 650,000 shares/day (H1 2005) Largest Shareholders :

Korea Zinc Group 10.34% Acorn Capital 9.16%

About Us

Share Register

as at 30 June 2005

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… NOTES : SLIDE 12

  • Issued 19.2m shares to Korea Zinc in the June quarter who

are now our largest shareholder.

  • Used proceeds to settle US$15 convertible note loan.
  • 30% increase in trading liquidity over the previous six months.
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Diggers & Dealers Forum - August 2005

SLIDE 13 SLIDE 13

Overview of 2004/05

  • 4,827

Gold (oz)* 0.39 0.41 Cash Cost US$/lb zinc

2003/04 2004/05

PRODUCTION * metal 1.7 1.9 Silver (Moz)* 54.2 61.1 Lead (kt)* 140.4 132.0 Zinc (kt)*

About Us

Revenue Composition 2004/05

Silver 6% Lead 28% Zinc 65% Gold 1% SLIDE 13 SLIDE 13

Overview of 2004/05

  • 4,827

Gold (oz)* 0.39 0.41 Cash Cost US$/lb zinc

2003/04 2004/05

PRODUCTION * metal 1.7 1.9 Silver (Moz)* 54.2 61.1 Lead (kt)* 140.4 132.0 Zinc (kt)*

About Us

Revenue Composition 2004/05

Silver 6% Lead 28% Zinc 65% Gold 1%

NOTES : SLIDE 13

Production :

  • 10% less ore mined
  • 6% reduction in zinc; 3% increase in lead; 2% increase in silver
  • Only 5% increase in zinc unit costs despite 10% lower production

and inflationary pressure on input costs (also increased contribution from by-products)

  • First gold production from Daisy Milano

Revenue :

  • Growing contribution from lead
  • First contribution from gold
  • Diversifying revenue stream
  • Base metals 93%
  • Precious metals 7%

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

SLIDE 14 SLIDE 14

About Us

Broken Hill

2004/05 Quarterly Production & Cash Costs

Broken Hill Quarterly Production Statistics

  • 10

20 30 40 SQ DQ MQ JQ

Contained Metal - kt

0.35 0.38 0.40 0.43 0.45

Cash Cost - US$/lb

Zinc Lead Cash cost US/lb

SLIDE 14 SLIDE 14

About Us

Broken Hill

2004/05 Quarterly Production & Cash Costs

Broken Hill Quarterly Production Statistics

  • 10

20 30 40 SQ DQ MQ JQ

Contained Metal - kt

0.35 0.38 0.40 0.43 0.45

Cash Cost - US$/lb

Zinc Lead Cash cost US/lb

NOTES : SLIDE 14

  • Quarterly costs during past year ranged between 0.39 and

0.43 US cents.

  • Growing contribution from lead providing both revenue and
  • verall unit cost benefit.
  • Processing operations going really well with significant

improvement in recovery and operating costs over past year.

  • Unfortunately operational efficiency gains offset by 10% ore

production shortfall – cannot afford that!

  • Mining operations have now come to grips with the

complexity of remnant and multiple stope mining. The rate of change has resulted in a commensurate quantum improvement in our capability, both people and systems.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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SLIDE 16

Diggers & Dealers Forum - August 2005

SLIDE 15 SLIDE 15

Improve profit margin Strategic planning Value add exploration Capital discipline

Our Focus

Build Shareholder Value

SLIDE 15 SLIDE 15

Improve profit margin Strategic planning Value add exploration Capital discipline

Our Focus

Build Shareholder Value

NOTES : SLIDE 15

  • Focussing on regaining momentum as a business as well as

addressing the immediate operational challenges confronting Perilya at both Broken Hill & Daisy Milano. Pleased with the progress over the past couple of months.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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SLIDE 17

Diggers & Dealers Forum - August 2005

SLIDE 16 SLIDE 16

Achieve production targets Cost control Invest in continuous process improvement

Improve Profit Margin

Our Focus

SLIDE 16 SLIDE 16

Achieve production targets Cost control Invest in continuous process improvement

Improve Profit Margin

Our Focus

NOTES : SLIDE 16

  • Whilst tightening up on expenditure control, the key short term

focus is on consistently achieving our production targets.

  • Broken Hill has made good progress in identifying
  • pportunities for enhancement using proven improvement
  • methodologies. We will be applying additional resources to the

top 5 improvement projects.

  • These include:
  • Increasing production from North Mine
  • Metallurgical recovery

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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SLIDE 18

Diggers & Dealers Forum - August 2005

SLIDE 17 SLIDE 17

Prioritise short to medium term activities Identify capability gaps Provide context for evaluating existing assets & investments Provide framework for making future investment decisions

Strategic Planning

Our Focus

SLIDE 17 SLIDE 17

Prioritise short to medium term activities Identify capability gaps Provide context for evaluating existing assets & investments Provide framework for making future investment decisions

Strategic Planning

Our Focus

NOTES : SLIDE 17

  • Strategic planning to be completed in next three months.
  • Important that we not only address the immediate issues, but

invest in future growth – people, assets, systems.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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SLIDE 19

Diggers & Dealers Forum - August 2005

SLIDE 18 SLIDE 18

Prioritise organic growth opportunities Align expenditure with decision hurdles Joint venture lower priority / high risk projects Divest assets not supporting strategic plan

Value Add Exploration

Our Focus

SLIDE 18 SLIDE 18

Prioritise organic growth opportunities Align expenditure with decision hurdles Joint venture lower priority / high risk projects Divest assets not supporting strategic plan

Value Add Exploration

Our Focus

NOTES : SLIDE 18

  • Prioritisation will occur within the context of the strategic

planning currently underway.

  • Key objective will be extending mine life of existing operations.
  • Project expenditure to facilitate decision making on

subsequent action plan and/or validity of strategy.

  • Actively pursue joint venture arrangements for lower priority

and/or high risk projects.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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SLIDE 20

Diggers & Dealers Forum - August 2005

SLIDE 19 SLIDE 19

Systems Prioritisation Review Delivery

Capital Discipline

Our Focus

SLIDE 19 SLIDE 19

Systems Prioritisation Review Delivery

Capital Discipline

Our Focus

NOTES : SLIDE 19

  • Enhanced project evaluation & development systems.
  • Prioritisation based on strategy and returns.
  • Independent review.
  • Deliver on targets.

NOTES: ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ……………………………………………………………………… ………………………………………………………………………

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Diggers & Dealers Forum - August 2005

SLIDE 20 SLIDE 20

2005/06 is a year of building capability Solid production performance Develop & implement growth plan Leadership

Our Approach

Create Momentum

SLIDE 20 SLIDE 20

2005/06 is a year of building capability Solid production performance Develop & implement growth plan Leadership

Our Approach

Create Momentum

NOTES : SLIDE 20

  • 2005 / 06 is a year of building capability, to be underpinned by

solid operational performance, enabling the opportunity to develop & implement our growth plan and extract greater value from our asset base.

  • All of this energised by stronger leadership across the
  • rganisation.

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SLIDE 22

Diggers & Dealers Forum - August 2005

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Build on existing strengths Strong focus on cash flow Instil culture of accountability Strengthen operating & development disciplines Develop leadership skills

Our Approach

Build Lasting Value

SLIDE 21 SLIDE 21

Build on existing strengths Strong focus on cash flow Instil culture of accountability Strengthen operating & development disciplines Develop leadership skills

Our Approach

Build Lasting Value

NOTES : SLIDE 21

  • No surprises
  • Systematic
  • One of the first steps is recruiting a General Manager –

Development

  • Make the tough decisions:
  • Intensity
  • Engage with the problem or opportunity

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SLIDE 23

Diggers & Dealers Forum - August 2005

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  • Strengthen our organisational capability
  • Optimise production & reduce overall unit costs at Broken Hill
  • Accelerate definition of additional ore sources at Broken Hill
  • Complete Daisy Milano optimisation study & ramp up production
  • Update strategic business plan
  • Prioritise & accelerate exploration & development activities

Summary

Perilya Limited

6 Month Outlook

SLIDE 22 SLIDE 22

  • Strengthen our organisational capability
  • Optimise production & reduce overall unit costs at Broken Hill
  • Accelerate definition of additional ore sources at Broken Hill
  • Complete Daisy Milano optimisation study & ramp up production
  • Update strategic business plan
  • Prioritise & accelerate exploration & development activities

Summary

Perilya Limited

6 Month Outlook

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SLIDE 24

Diggers & Dealers Forum - August 2005

A Unique Opportunity

Diggers & Dealers Forum, August 2005 Len Jubber, CEO

A Unique Opportunity

Diggers & Dealers Forum, August 2005 Len Jubber, CEO

NOTES : SLIDE 23

  • Questions

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