ASX ANNOUNCEMENT 19 January 2009 The Manager Company Announcements - - PDF document

asx announcement 19 january 2009 the manager company
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ASX ANNOUNCEMENT 19 January 2009 The Manager Company Announcements - - PDF document

ASX ANNOUNCEMENT 19 January 2009 The Manager Company Announcements Office Australian Securities Exchhange Investor Presentation Share Placement We refer to the Companys trading halt application of earlier today which referred to a proposed


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SLIDE 1

PanAust Limited ABN 17 011 065 160 Level 2, 99 Melbourne Street • PO Box 3468 • South Brisbane Qld 4101 Phone +61 (0) 7 3117 2000 • Facsimile +61 (0) 7 3846 4899 info@panaust.com.au • www.panaust.com.au

ASX ANNOUNCEMENT 19 January 2009

The Manager Company Announcements Office Australian Securities Exchhange

Investor Presentation – Share Placement

We refer to the Company’s trading halt application of earlier today which referred to a proposed share placement and share purchase plan. We attached a copy of the presentation that will be used during meetings with investors in regard to the proposed share placement.

For further information contact: Allan Ryan Pam Keenan Investor Relations Manager Communications Manager PanAust Limited Tel: +61 7 3117 2000 Email: info@panaust.com.au Website: www.panaust.com.au

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SLIDE 2

PANAUST

Company update, January 2009

Phu Kham Quarterly Result

Phu Kham Operations Production summary Units 3 months to 31 Dec 2008 12 months to 31 Dec 2008 Total material mined t 6,230,533 18,673,473 Copper‐gold ore mined t 2,723,029 6,662,144 pp g , , , , Copper head grade % 0.67 0.60 Gold head grade g/t 0.31 0.36 Gold head grade g/t 0.31 0.36 Silver head grade g/t 2.83 2.87 Ore milled t 2 899 869 6 859 716 Ore milled t 2,899,869 6,859,716 Concentrate produced dmt 51,621 100,899 Copper in concentrate t 13 077 24 929 Copper in concentrate t 13,077 24,929 Gold in concentrate

  • z

10,413 25,261 Sil i 81 211 159 676 Silver in concentrate

  • z

81,211 159,676 Gold in doré (Heap Leach)

  • z

5,598 20,961

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SLIDE 3

Phu Kham Quarterly Financial Result

Phu Kham provides US$9.4M operating surplus before sustaining capital Revenue US$37.4M with 6,921dmt of copper in concentrate in stock at quarter end worth US$22M1 C1 Cash costs fell to US$1.07/lb in Dec. and are falling rapidly towards the sub- US$0 90/lb2 target level for 2009 US$0.90/lb2 target level for 2009 Input costs falling: Diesel3: Q3 US$0.99/t, now US$0.34/t Steel4: Q3 US$1.84/t, now ~US$1.00/t

1 At US$1.45/lb copper 2 By product credit prices: US$700/oz gold and US$10/oz silver 3 Per tonne of material mined 4 Per tonne of ore milled

Cash & Debt

US$6.2M cash at 31 December 2008 Loan facilities: Project seven-year facility of US$185M fully drawn with mandatory repayment of ~US$22M in 2009 ~US$22M in 2009 Subordinated US$80M debt facility with GSJBW1; rolled over to maturity date of GSJBW1; rolled over to maturity date of 31 March 2010; drawn to US$78M US$47M i t l f ilit f ll US$47M equipment lease facility; fully drawn US$8M working capital facility; fully drawn US$8M working capital facility; fully drawn

1 Goldman Sachs JBWere

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SLIDE 4

Sub-Debt Refinance

Rothschild appointed advisor for refinance

  • f US$80M GSJBW subordinated debt
  • f US$80M GSJBW subordinated debt

facility Unsolicited third party interest has been p y received Well advanced in securing firm proposals g The refinance is expected to be completed during 1H 2009

Phu Kham Quarterly Reconciliation

Positive reconciliation of ore milled to

  • re reserve continued during the
  • re reserve continued during the

December quarter: Ore Tonnes: +2% Ore Tonnes: +2% Copper Grade: +9% G ld G d 20% Gold Grade: +20% Silver Grade: +68%

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SLIDE 5

Growth Projects

Phu Kham expansion to 16Mtpa study complete, long lead items secured; further capital commitment pending copper price recovery copper price recovery Ban Houayxai Gold Project Pre- Feasibility Study completed; Feasibility Feasibility Study completed; Feasibility Study due December quarter 2009 Puthep Copper Project resource drilling Puthep Copper Project resource drilling complete, Feasibility Study resource estimate due June quarter 2009 Capital projects will be advanced with caution until stability returns to global y g markets

2009 Project Cashflow

2009 cash generation from Phu Kham O ti US$90M t C i f Operations ~US$90M at a Cu price of US$1.45/lb and US$800/oz gold Aft d bt i d d t i After debt service and mandatory senior debt repayments cash generation ~US$50M at US$1.45/lb Cu US$50M at US$1.45/lb Cu 31 Dec 08 mark to market Quotation Period (QP) exposure ~US$35M1 at Period (QP) exposure US$35M at US$1.45/lb copper to be managed through 2009 Cu sales Policy of hedging 50% of QP exposure:

  • ver 8,700t Cu sold between January

and April 2009 at ~US$1.45/lb copper

1 To be recognised in the 2008 Profit & Loss Account

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SLIDE 6

2009 Cashflow & Funding

Private Placement – US$15M additional working capital: Supplement US$8.1M working capital facility Revenue payments 2 to 3 weeks apart Revenue payments 2 to 3 weeks apart Assist cashflow management Share Purchase Plan – US$20M to US$25M working capital buffer and feasibility/exploration funding: Working capital buffer to copper price volatility Ban Houayxai Feasibility Study – US$5.0M Puthep Feasibility Study – US$2.5M y y Exploration – TBD

Organic Growth Potential

Heap leach gold Phu Kham gold + silver Phu Kham copper Project 100 Ban Houayxai Puthep (PNA share)

1 1 1

140 160

Project 100 Ban Houayxai Puthep (PNA share)

100 120

000's)

60 80 100

er Eq.

2 (t 0

40 60

Coppe

20 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

1 – Subject to feasibility study and other project approvals 2 – Copper equivalent assumptions: copper US$2.00/lb, gold US$800/oz, silver US$10/oz

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SLIDE 7

Important Notice

This presentation has been prepared by the management of PanAust Limited (the 'Company') for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. The information is based on publicly available information, internally developed data and other sources. No independent verification

  • f those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and
  • f those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and

limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the

  • rigin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to

the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way out

  • f or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it.

Where the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability

  • f future projects, such expectation or belief is based on management’s current predictions, assumptions and projections. However,

such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. Such risks include, but are not limited to, exploration success, gold and copper price volatility, changes to the current mineral resource estimates, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. For more detail of risks and other factors, refer to the Company's other Australian Securities Exchange announcements and filings. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, any forecast or to update such forecast. Calculation of copper equivalent tonnes Copper equivalent production referred to in this report was calculated by combining copper, gold and silver production using the following equation: g q Copper equivalent tonnes = copper tonnes + value of gold produced (US$) + value of silver produced (US$) copper price (US$/tonne) Assumptions unless otherwise stated are: Copper US$2.00/lb Copper US$2.00/lb Gold US$800/oz Silver US$10/oz Competent Person Statements Competent Person Statements The data in this report that relates to Exploration Results, Mineral Resources and Ore Reserves based on information reviewed by Mr Daniel Brost who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Brost is a full time employee of PanAust Limited. Mr Brost has sufficient experience relevant to the style of mineralisation and t f d it d id ti d t th ti it hi h h i d t ki t lif C t t P d fi d i th 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 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Brost consents to the inclusion in the report of the matters based on his review in the form and context in which it appears. Forward-Looking Statements This presentation includes certain “Forward-Looking Statements”. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding forecast cash flows and potential mineralisation, resources and reserves, exploration results and future expansion plans and development objectives of PanAust Limited are forward-looking statements that involve various risks and uncertainties There can be no assurance that such statements will prove to be accurate and actual results involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.