OZ MINERALS • NOVEMBER 2009 • PAGE 1
OZ MINERALS THIRD QUARTER REPORT
19 OCTOBER 2010
WWW.OZMINERALS.COM
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
OZ MINERALS • NOVEMBER 2009 • PAGE 1
19 OCTOBER 2010
WWW.OZMINERALS.COM
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
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 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, $14m in H2. − 10 drill rigs on site (near mine, regional) by year end.
OZ MINERALS • PAGE 4
SAFETY
OZ Minerals Lost Time and Total Recordable Injury Frequency Rate 12 Month Moving Average *
* Injuries per million man hours
2 4 6 8 10 12 14 16 18 20 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Frequency Rate
OZ Minerals TRIFR OZ Minerals LTIFR
recordable injuries are restricted work injuries resulting from muscular strains.
procedure for all LTI’s to include face- to-face review by relevant senior management of injured person with Executive Committee.
OZ MINERALS • PAGE 5
PROMINENT HILL
gold only ore have led to higher throughput.
guidance i.e. >185,000oz.
PROMINENT HILL PRODUCTION STATISTICS JUN QTR '10 SEP QTR '10 SEP YTD '10 MINED ORE (TONNES) 2,566,096 3,318,790 7,449,909 WASTE (TONNES) 13,125,011 13,513,182 39,072,282 MINED GRADE COPPER (%) 0.96% 0.71% 0.88% GOLD (G/T) 0.77 0.76 0.85 SILVER (G/T) 1.87 2.08 2.32 ORE MILLED (TONNES) 2,359,593 2,427,880 6,995,665 MILLED GRADE COPPER (%) 1.35% 1.24% 1.40% GOLD (G/T) 0.81 0.84 0.81 SILVER (G/T) 2.69 2.21 3.33 RECOVERY COPPER (%) 88.5% 89.2% 88.8% GOLD (%) 80.3% 78.3% 77.8% SILVER (%) 78.3% 78.3% 66.4% CONTAINED METAL IN CONCENTRATES COPPER (TONNES) 28,236 26,841 86,986 GOLD (OZ) 49,249 51,451 142,272 SILVER (OZ) 159,750 135,304 497,072 TOTAL CONCENTRATE SOLD (DM TONNES) 83,811 46,593 171,129 C1 CASH COSTS US CENTS PER LB 39.8 43.0 47.2
OZ MINERALS • PAGE 6
PROMINENT HILL UNDERGROUND: ANKATA MINE, UNDERWAY
Mining to commence
Vent Shaft Construction Portal Establishment Development Start First Ore First Stope Full Production
Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012
OZ MINERALS • PAGE 7
5,500 6,500 7,500 8,500 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 US$/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
OZ MINERALS • PAGE 8
PROMINENT HILL OLYMPIC DAM CARRAPTEENA
SOUTH AUSTRALIAN COPPER
Interpreted subsurface geology of the Gawler Craton, South Australia.
contains one
plus
deposits include Olympic Dam, Prominent Hill, Carrapateena, Hillside.
low compared to other Australian terrains of Late Archean / Paleoproterozoic age e.g. Yilgarn Craton.
OZ MINERALS • PAGE 9
SOUTH AUSTRALIAN COPPER
Gawler Craton, South Australia.
contains one
plus
deposits include Olympic Dam, Prominent Hill, Carrapateena, Hillside.
low compared to other Australian terrains of Late Archean / Paleoproterozoic age e.g. Yilgarn Craton.
OZ MINERALS • PAGE 10
REGIONAL EXPLORATION 2010-2011
Gravity
EL4390 EL3387 EL4446 EL3730 EL3730 EL3518 EL3729 EL3445 EL3830 EL4390 EL4025 EL4429OZ 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
tenement area – 4,000km2 OZ Minerals, 3,000km2 IMX JV.
remain untested.
being gathered for prospective areas.
5 drill rigs for regional exploration by year end.
OZ MINERALS • PAGE 11 EL4446 EL4429
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
OZ MINERALS • PAGE 12
PROMINENT HILL – MINERALISED ZONES
ANKATA DEPOSIT KALAYA ZONE PAPA ZONE MALU DEPOSIT MUNDA ZONE
Ankata underground access
OZ MINERALS • PAGE 13
PROMINENT HILL – RECENT NEAR MINE EXPLORATION
ANKATA DEPOSIT PAPA ZONE MALU DEPOSIT
Ankata underground access
MUNDA ZONE KALAYA ZONE
OZ MINERALS • PAGE 14
OZ MINERALS - REGIONAL EXPLORATION
Operation Exploration Headquarters AUSTRALIA MEXICO
SAN EDUARDO
PROMINENT HILL
COBAR CAMBODIA PICHASCA
CHILE
OZ MINERALS • PAGE 15
EXPLORATION – ACTIVE PROGRAM
commitment.
$58 million.
2010 Exploration & Resource Development Spend - Expected
Prominent Hill Near Mine 27% Cambodia 15% Other 20% Prominent Hill Regional 38%
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.
OZ MINERALS • NOVEMBER 2009 • PAGE 17