OZ MINERALS THIRD QUARTER REPORT 19 OCTOBER 2010 - - PowerPoint PPT Presentation

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OZ MINERALS THIRD QUARTER REPORT 19 OCTOBER 2010 - - PowerPoint PPT Presentation

OZ MINERALS THIRD QUARTER REPORT 19 OCTOBER 2010 WWW.OZMINERALS.COM OZ MINERALS NOVEMBER 2009 PAGE 1 DISCLAIMER This presentation has been prepared by OZ Minerals Limited (OZ Minerals) and consists of written materials/slides for


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OZ MINERALS • NOVEMBER 2009 • PAGE 1

OZ MINERALS THIRD QUARTER REPORT

19 OCTOBER 2010

WWW.OZMINERALS.COM

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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
  • bligation 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.

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OZ MINERALS • PAGE 3

HIGHLIGHTS

− Excellent quarter at Prominent Hill. − Copper production on-track to meet guidance, gold expected to be at least 185,000oz. − Very pleasing plant performance. − Costs remains very competitive despite A$ strength. − Underground mine construction underway. − Encouraging intercepts in the Kalaya zone. − Regional exploration focus, $14m in H2. − 10 drill rigs on site (near mine, regional) by year end.

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OZ MINERALS • PAGE 4

SAFETY

OZ Minerals Lost Time and Total Recordable Injury Frequency Rate 12 Month Moving Average *

* Injuries per million man hours

2 4 6 8 10 12 14 16 18 20 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Frequency Rate

OZ Minerals TRIFR OZ Minerals LTIFR

  • 60% of total

recordable injuries are restricted work injuries resulting from muscular strains.

  • Investigation

procedure for all LTI’s to include face- to-face review by relevant senior management of injured person with Executive Committee.

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OZ MINERALS • PAGE 5

PROMINENT HILL

  • Higher ore mining.
  • Fourth mining fleet commenced.
  • Plant improvements and ‘softer’

gold only ore have led to higher throughput.

  • Record continuous run-time.
  • Recovery continues to be pleasing.
  • Gold production likely to be 10% above previous

guidance i.e. >185,000oz.

  • Costs remain competitive despite higher $A.
  • Underground underway.

PROMINENT HILL PRODUCTION STATISTICS JUN QTR '10 SEP QTR '10 SEP YTD '10 MINED ORE (TONNES) 2,566,096 3,318,790 7,449,909 WASTE (TONNES) 13,125,011 13,513,182 39,072,282 MINED GRADE COPPER (%) 0.96% 0.71% 0.88% GOLD (G/T) 0.77 0.76 0.85 SILVER (G/T) 1.87 2.08 2.32 ORE MILLED (TONNES) 2,359,593 2,427,880 6,995,665 MILLED GRADE COPPER (%) 1.35% 1.24% 1.40% GOLD (G/T) 0.81 0.84 0.81 SILVER (G/T) 2.69 2.21 3.33 RECOVERY COPPER (%) 88.5% 89.2% 88.8% GOLD (%) 80.3% 78.3% 77.8% SILVER (%) 78.3% 78.3% 66.4% CONTAINED METAL IN CONCENTRATES COPPER (TONNES) 28,236 26,841 86,986 GOLD (OZ) 49,249 51,451 142,272 SILVER (OZ) 159,750 135,304 497,072 TOTAL CONCENTRATE SOLD (DM TONNES) 83,811 46,593 171,129 C1 CASH COSTS US CENTS PER LB 39.8 43.0 47.2

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OZ MINERALS • PAGE 6

PROMINENT HILL UNDERGROUND: ANKATA MINE, UNDERWAY

  • Ventilation shaft construction.
  • Cutback to access portal underway.
  • Byrnecut

Mining to commence

  • perations in November.
  • Underground exploration mid 2011.

Vent Shaft Construction Portal Establishment Development Start First Ore First Stope Full Production

Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

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OZ MINERALS • PAGE 7

5,500 6,500 7,500 8,500 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 US$/t

$0.75 $1.00 $1.25 $1.50 $1.75 Jan-10 Mar-10 May-10 Jul-10 Sep-10 A$

MARKETS

Copper price

Source: Bloomberg

Gold price

Source: Bloomberg

Share price

Source: Bloomberg

Copper price forecast - broker consensus

310 318 330 350 340 324 355 352 338 341 330 290 310 330 350 370 2010 2011 2012 USc/lb Jan Apr June Oct

Medium-term-forecasts remain buoyant

1,100 1,200 1,300 1,400 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 US$/oz

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OZ MINERALS • PAGE 8

PROMINENT HILL OLYMPIC DAM CARRAPTEENA

SOUTH AUSTRALIAN COPPER

Interpreted subsurface geology of the Gawler Craton, South Australia.

  • The Gawler Craton

contains one

  • f world’s largest orebodies

plus

  • ther significant deposits. Copper

deposits include Olympic Dam, Prominent Hill, Carrapateena, Hillside.

  • Historical exploration expenditure

low compared to other Australian terrains of Late Archean / Paleoproterozoic age e.g. Yilgarn Craton.

  • Many copper occurrences.
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OZ MINERALS • PAGE 9

SOUTH AUSTRALIAN COPPER

Gawler Craton, South Australia.

  • The Gawler Craton

contains one

  • f world’s largest orebodies

plus

  • ther significant deposits. Copper

deposits include Olympic Dam, Prominent Hill, Carrapateena, Hillside.

  • Historical exploration expenditure

low compared to other Australian terrains of Late Archean / Paleoproterozoic age e.g. Yilgarn Craton.

  • Many copper occurrences.
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OZ MINERALS • PAGE 10

REGIONAL EXPLORATION 2010-2011

Gravity

EL4390 EL3387 EL4446 EL3730 EL3730 EL3518 EL3729 EL3445 EL3830 EL4390 EL4025 EL4429
  • EL4429
EL4132 EL3795 EL4283 EL4429

OZ Minerals tenements IMX Tenements Coober Pedy

20km

Current and Future OZ Minerals Drill Prospects Airborne Gravity Survey Proposed Airborne Magnetic Surveys IP Surveys in Progress/Planned

  • Approximately 7,000km2

tenement area – 4,000km2 OZ Minerals, 3,000km2 IMX JV.

  • Drilling of a number of prospects
  • ngoing. Multiple new prospects

remain untested.

  • Program of detailed geophysics

being gathered for prospective areas.

  • Substantial exploration program -

5 drill rigs for regional exploration by year end.

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OZ MINERALS • PAGE 11 EL4446 EL4429

  • EL4390

EL4283

REGIONAL EXPLORATION – 2009 – 2010 - 2011

Magnetics

Mt Hawker Pluto Halifax Hill Hathorn Larissa Nichol Well PH South Bluebird Umbriel Cressida Scyla Taurus Zeus Calisto Europa Kennedy Peculiar Knob Nth Neptune Triton

10km

Perseus Pluto – drilled prospect Proposed drilling 2010-2011 - Regional Proposed drilling area 2010-2011 – Near-Mine

IP surveys – in progress/planned

3.1m @ 1.45% Cu, 0.52% Ni 15m @ 0.77% Cu 1.02g/t Pt, 0.66 Pd 106m @ 0.13% Cu 26.7m @ 0.4% Cu (from 562m) 115.5m @ 0.16% Cu (from 149.4m) 182.2m @ 0.25% Cu (from 261m) 26m @ 0.49% Cu (from 134.5m) 15m @ 0.91% Cu (from 146.9m)* 44m @ 0.26% Cu (from 245m)* 25m @ 0.19% Cu (from 630m)* 10m @ 0.57% Cu 97m @ 0.19% Cu (from 373m)* 2m @ 0.5% Cu 287m @ 0.23% Cu

Manxman Proteus

*

Selected drilling results Drilled Q3

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OZ MINERALS • PAGE 12

PROMINENT HILL – MINERALISED ZONES

ANKATA DEPOSIT KALAYA ZONE PAPA ZONE MALU DEPOSIT MUNDA ZONE

Ankata underground access

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OZ MINERALS • PAGE 13

PROMINENT HILL – RECENT NEAR MINE EXPLORATION

ANKATA DEPOSIT PAPA ZONE MALU DEPOSIT

Ankata underground access

MUNDA ZONE KALAYA ZONE

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OZ MINERALS • PAGE 14

OZ MINERALS - REGIONAL EXPLORATION

Operation Exploration Headquarters AUSTRALIA MEXICO

SAN EDUARDO

PROMINENT HILL

COBAR CAMBODIA PICHASCA

CHILE

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OZ MINERALS • PAGE 15

EXPLORATION – ACTIVE PROGRAM

  • Significant exploration budget and

commitment.

  • A$25 million global spend in H1.
  • Focussed on Prominent Hill.
  • $21 million at Prominent Hill in H2.
  • Total budget for 2010 -

$58 million.

  • Drilling to increase.

2010 Exploration & Resource Development Spend - Expected

Prominent Hill Near Mine 27% Cambodia 15% Other 20% Prominent Hill Regional 38%

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OZ MINERALS • PAGE 16

CONCLUSION

− Strong performance from Prominent Hill. − On track to meet copper guidance. − Gold production expected to be higher than previous guidance. − Competitive costs. − Underground construction underway. − Major exploration program underway. − Dividend paid.

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OZ MINERALS • NOVEMBER 2009 • PAGE 17