FIRST QUARTER REPORT 2015 20 April 2015 DISCLAIMER This - - PowerPoint PPT Presentation

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FIRST QUARTER REPORT 2015 20 April 2015 DISCLAIMER This - - PowerPoint PPT Presentation

FIRST QUARTER REPORT 2015 20 April 2015 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


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FIRST QUARTER REPORT 2015

20 April 2015

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OZ Minerals | 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 their 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 therefrom, or otherwise arising in connection with it. Some statements in this presentation are forward-looking statements within the meaning of the US securities laws. Such statements include, but are not limited to, statements with regard to 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 Minerals’ 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

  • f 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 and 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 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. All figures are expressed in Australian dollars unless stated otherwise. This presentation should be read in conjunction with the Quarterly Report released today.

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2015 FIRST QUARTER OVERVIEW

IMPROVED SAFETY & COMMUNITY PERFORMANCE, BUT MORE WORK TO DO

  • Improvement in safety performance

commenced.

  • Reduction in TRIFR to 6.7 and reduction

in LTIFR to 1.7.

  • Focus on investigation of significant

incidents and high potential incidents, with lessons then reflected in changed work practices and continued staff education.

  • Executing MoU with Adelaide University

to explore win-win partnership

  • pportunities.
  • Joined with South Australian

Government, Universities and other mining companies to initiate the South Australian focused Copper-Uranium Transformation Research Hub.

Improvement, but more work required

2 4 6 8 10 2 4 6 8 10 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 LTI Frequency Rate TRI Frequency Rate OZ Minerals TRIFR OZ Minerals LTIFR

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2015 FIRST QUARTER OVERVIEW

A STRONG BASE FROM WHICH TO BUILD

  • Strong copper production of 31,160 tonnes,

best quarterly production since Q1 2010.

  • Gold production slightly lower than prior

quarter with maximum value derived from prioritising copper ore.

  • Ankata and Malu Underground mining as
  • planned. Focus for 2015 remains on

improving development rates.

  • Open pit unit costs increased from Q4 due to

demobilisation charges, lower total tonnes

  • ffset by lower diesel prices.
  • Sales lower than production due to shipment

timing with March shipment occurring in April.

  • Lower C1 costs reflect higher copper

production and falling A$/US$.

First Quarter Results – Key Statistics Item Value Contained Copper produced (t) 31,160 Contained Gold produced (oz) 32,873 Open pit waste (Mt) 9.94 Open pit ore (Mt) 2.85 Underground ore (Mt) 0.46 Milling (Mt) 2.48 Copper sold (t) 25,289 Gold sold (oz) 29,650 Open Pit unit costs $/t 5.77 C1 costs USc/lb 63

Favorable to guidance Unfavorable to guidance

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2015 FULL – YEAR GUIDANCE

Item Range

Copper production 110,000 to 120,000 tonnes Gold production 100,000 to 110,000 ounces Open pit strip ratio 2.8 to 3.2 Open pit material movement 48 to 52 Mt Open pit unit mining costs $5.80 to $6.10/t C1* US80 to US95 c/lb Malu Underground capital expenditure $80 million Sustaining capital expenditure $16 million Studies and Exploration

  • Hydromet $19m
  • Other studies (Rail, Malu Deeps)

$6m

  • Carrapateena drilling $5m
  • Global drilling $8m
  • Other Carrapateena activities and

lease retention $7m

2015 Production and Costs

  • Accelerating mine plan pulls copper

production forward.

  • Reducing mine volumes release cash flow

earlier.

  • Mine unit costs influenced by fixed costs

which don’t adjust with mined volumes.

  • C1 costs benefit from higher total copper

production and lower A$/US$.

  • Malu UG capital expenditure lower than

previously advised with deferral of drilling and reduced development rates.

  • Studies focused on unlocking Carrapateena

value and reducing risk.

  • Exploration focused on drilling at very

promising Jamaica prospects and advanced target identification.

2015 GUIDANCE REFLECTIVE OF A LEANER, MORE AGILE BUSINESS

* Assumptions: Gold US$1,200oz, A$/US$ 78c

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