THIRD QUARTER REPORT 14 OCTOBER 2014 DISCLAIMER This presentation - - PowerPoint PPT Presentation

THIRD QUARTER REPORT

14 OCTOBER 2014

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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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THREE KEY MILESTONES ACHIEVED IN THE QUARTER

1. Prominent Hill production successfully returned to the 100,000 tonne per year copper production ’run-rate’

• Open pit mining rate ahead of revised schedule.
• Record plant quarterly throughput.
• Firmly on track to achieve production guidance. Gold production expected to be at

upper end of guidance.

• Low C1 costs of US60.5 cents/lb. Costs now expected to be at lower end of guidance.

2. First production achieved from Malu Underground on schedule

• First ore from stoping achieved in early October 2014.
• Malu Underground independent ventilation system installed and operating.
• Underground operations being integrated.

3. Carrapateena Pre-Feasibility Study completed, successfully demonstrating viability

• Technically and financially viable with low operating costs and long life.
• Well located in a low risk jurisdiction with good access to infrastructure.
• Opportunities such as synergies with Prominent Hill and automation can provide

further improved results.

• Due diligence by interested parties underway.

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2 4 6 8 10 4 8 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 LTI Frequency Rate TRI Frequency Rate OZ Minerals TRIFR OZ Minerals LTIFR

SAFETY

• Slight increase in injury rates – focus firmly on learning from high potential incidents.

*per million hours worked

OZ MINERALS LOST TIME AND TOTAL RECORDABLE INJURY FREQUENCY RATE 12 MONTH MOVING AVERAGE*

PROMINENT HILL PRODUCTION SUCCESSFULLY RETURNED TO THE 100,000 TONNE PER YEAR COPPER PRODUCTION ’RUN-RATE’

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PROMINENT HILL OPEN PIT MINING AHEAD OF SCHEDULE

MALU OPEN PIT SEPTEMBER 2014. Larger working areas and better fleet management control has driven greater material movement. One bench ahead in Stage 3, one bench ahead in Stage 4, relative to July 2014 advice.

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PROMINENT HILL PRODUCTION STATISTICS JUN 14 QTR SEP 14 QTR Mined Malu copper-gold ore (tonnes) 2,398,069 2,222,443 Malu gold-only ore (tonnes) 1,731,447 1,821,155 Waste (tonnes) 17,901,470 16,400,448 Ankata ore (tonnes) 307,562 322,124 Mined Grade Malu copper-gold ore Cu grade (%) 0.99 1.08 Malu copper-gold ore Au grade (g/t) 0.54 0.44 Malu gold-only ore Cu grade (%) 0.13 0.11 Malu gold-only ore Au grade (g/t) 1.01 0.78 Ankata ore Cu grade (%) 1.88 2.24 Ankata ore Au grade (g/t) 0.46 0.45 Ore Milled (tonnes) (tonnes) 2,234,649 2,755,848 Milled Grade Copper (%) Copper (%) 1.10 1.06 Gold (g/t) Gold (g/t) 0.56 0.68 Recovery Copper (%) Copper (%) 90.5 90.0 Gold (%) Gold (%) 76.7 78.4 Copper Cons. Produced (tonnes) (tonnes) 41,790 49,375 Contained Metal In Cons. Copper (tonnes) Copper (tonnes) 22,181 26,249 Gold (oz) Gold (oz) 30,736 47,376 Total Cons. Sold* (DM tonnes) (DM tonnes) 43,737 38,883

Strong quarterly performance with fewer production excavators in the open pit. Good recoveries maintained. Copper production above 100kt per annum run rate due to strong ore production and increased milled tonnes. Increase in Malu open pit grade, as forecast. Highest ever quarterly throughput.

PROMINENT HILL

Q3 PRODUCTION STATISTICS – STRONG PERFORMANCE CONTINUES

*excludes sales of third party concentrates

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• 5

10 15 20 25 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 Mt Waste tonnes Ore tonnes

ORE & WASTE MINING BY QUARTER DECLINING WASTE MINING REQUIREMENTS MINING RATES (BCM/hr) CONTINUING IMPROVEMENT

• Planned reduction in waste mining volumes.
• As previously announced, ore production higher as Stage 3 accesses higher volumes of higher quality ore.
• Optimising work areas, improved scheduling has allowed excavator mining rates to improve.
• September quarter strip ratio 4:1 compared to September quarter 2013 strip ratio of 12:1.

PROMINENT HILL

CONTINUING IMPROVEMENT IN OPEN PIT

1,000 1,050 1,100 1,150 1,200 1,250 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 BCM/hr 3-Month Average - Rolling

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Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014

ORE MILLED PER QUARTER RECORD THROUGHPUT

Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2.5Mt 25,000 tonnes

COPPER PRODUCTION PER QUARTER ABOVE 100,000tpa RUN-RATE

• Highest ever quarterly throughput by the processing plant.

− Engineering improvements, reduction in planned shutdowns proving effective.

• Copper production returned to 100,000 tonne per annum run-rate.

− Higher grade feed available from mining and higher throughput. − Building ore stockpile has allowed flexibility in processing.

PROMINENT HILL

RECORD THROUGHPUT, INCREASED PRODUCTION

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20 40 60 80 100 120 109.7 (1.1) (38.3) 29.7 (21.9) (0.7) (17.0) 60.5 Q2 Actual 2014 Gold price Payable gold volume Volume (Cost Driver) Costs FX Payable copper volume Q3 Actual 2014 (US c/lb)

PROMINENT HILL

LOW C1 COSTS DUE TO HIGHER GOLD PRODUCTION AND LOWER EXPENDITURE

UNIT COST C1 – Q3 2014 VS Q2 2014

54% increase in payable gold production, due to higher grades and higher milled tonnes. Increased

• re milled

reduced the inventory credit, offset by lower

• pen pit

movement. Reduction in processing costs due to revised later shutdown scheduling and reduction in Ankata costs due to higher levels of development work. Strong pit performance creates higher ROM stocks, allowing higher grade tonnes to be milled. USD gold average prices in line with Q2. A$/US$ rate was flat.

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COPPER MARKET

A$ COPPER PRICE STRENGTH

• A$ copper price remaining

healthy.

• All 2014 concentrate

production, including additional production advised at the end of Q2, now allocated under sales contracts.

• Concentrates inventory at

year end expected to be lower than 1 January.

A$ COPPER PRICE RESILIENCE

2.7 2.9 3.1 3.3 3.5 3.7 30/07 30/08 30/09 A$ US$/lb A$/lb Data source: Bloomberg

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2014 Full year

OPEN PIT COSTS

<$5.30/t 15% of 2014 expenditure increasing to 30% of annual expenditure to 2017 Costs mostly driven by factors other than open pit material movement Some examples of cost types Some example of drivers

• Contractor admin charge
• Dewatering
• Grade control
• Stockpile reclaim/re-handle
• Support personnel
• Ore mined
• Work areas
• Water management
• Mine life personnel planning
• Open pit unit costs of $4.98 per tonne mined in the third quarter. Strong result due to

improved mining rates, continuing refinement of the despatch system and shorter haul sequencing.

• 2014 full year open pit unit mining costs expected to be below $5.30 per tonne mined.
• Mine planning process underway, including analysis of stockpile management and

demobilisation schedule, including review of cost base.

Unit cost and expense drivers

85% of 2014 expenditure decreasing to 70% of annual expenditure to 2017 Costs mostly driven by total open pit material movement Some examples of cost types

• Drill and blast
• Loading
• Hauling
• Road maintenance

Open pit movement to reduce by ~75% by 2017, driving lower gross expenditure

FIRST PRODUCTION ACHIEVED FROM MALU UNDERGROUND ON SCHEDULE

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• Significant milestone for the Prominent Hill operation.
• Decline development commenced in 2013.
• First production from stoping in early October (Adam stope).

PROMINENT HILL

FIRST PRODUCTION ACHIEVED FROM MALU UNDERGROUND

Malu Underground infrastructure and stopes planned for 2014

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PROMINENT HILL

MALU UNDERGROUND INDEPENDENT PRIMARY VENTILATION ESTABLISHED

CARRAPATEENA PRE-FEASIBILITY STUDY COMPLETED, SUCCESSFULLY DEMONSTRATING VIABILITY

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CARRAPATEENA – PROJECT HIGHLIGHTS*

TECHNICALLY FEASIBLE, LONG LIFE, VERY LOW OPERATING COSTS, VERY WELL LOCATED Technical features

• Pre-Feasibility Study

completed to a very high standard.

• Block caving technically

feasible.

• Production of a high quality

copper-gold concentrate with uranium below typical penalty levels and no arsenic.

• Average annual production

rate of 114,000 tonnes of copper, 117,000 ounces of gold (at assumed steady state).

• Long mine-life of 24 years

based only on Reserves.

1 All figures in Australian dollars unless

• therwise stated.

Financial features1

• Projected net cash flow of

$8.508 billion (including capital expenditure).

• Net present value of

$1.146 billion post tax (at 8 percent real discount rate).

• Internal rate of return of

13 percent.

• Low C1 unit costs

averaging US$0.49 per payable pound of copper.

• Project capital cost of

$2.985 billion.

Potential upside

• Extensions to block cave

footprints and addition of Lift Three.

• Exploitation of Khamsin

and other regional exploration targets.

• Potential for mining fleet

automation.

• Use of regional ports.
• Optimisation of processing

with further metallurgical characterisation.

• Synergies with Prominent

Hill. *A management summary of the Pre-Feasibility was

released to the market on 18 August 2014 and is available to view at www.ozminerals.com/investor- information/asx-releases.html

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CARRAPATEENA

LOW CASH COSTS AND A LONG MINE LIFE

Aktogay Antucoya Bozshakol

Carrapateena

Caserones Cobre Panama Phase I Constancia Las Bambas Ministro Hales Phase I Mount Milligan Oyu Tolgoi Phase I Salobo I & II Sentinel Sierra Gorda Phase I Toromocho Phase I Red Chris

50,000 100,000 150,000 200,000 250,000 300,000 350,000 400,000 450,000 0.00 0.50 1.00 1.50 2.00 2.50 Annual CuEq Production C1 Cash Cost (US$/lb Cu)

Very low cash costs, globally relevant scale and a long mine life*

Years of Mine Life Based on Current Reserves

* Major recently developed or in-construction greenfield projects

Source: Company reports, OZ Minerals

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CARRAPATEENA: FREMANTLE DOCTOR

Q3 SIGNIFICANT INTERSECTIONS (PLAN VIEW)

737,000 mE 740,000 mE

Residual Gravity

N 1 km

Main Copper Mineralised Zone at Carrapateena

6,546,000 mN 6,543,000 mN

FDR005W1 CAR037 FDR008 FDR009 FDR007 FDR010

Holes for which results were received during the quarter and significant intersections from DD14FDR005W1 and DD14FDR010:

Hole Number

From (metres) Interval (metres) Copper (%) Gold (g/t) *DD14FDR005W1 975.0 1188.0 0.40 0.21 **Including 1390.5 44.5 1.95 1.30 **Including 1443.0 51.0 1.83 1.20 *DD14FDR010 1024.0 656.0 0.45 0.36 *Including 1232.0 201.0 0.87 0.89 **Including 1232.0 15.0 1.17 0.49 **Including 1258.0 40.0 1.41 2.07 **Including 1331.9 30.1 1.17 1.19 **Including 1377.0 13.0 1.35 1.18 Section 6545700mN Section 739515mE

*Intervals calculated using a 0.1% Cu cut-off grade with unlimited internal dilution. **Intervals calculated using a 0.7% Cu cut-off grade up to/including 4m internal dilution. All drill hole assay intervals are down hole length, true width not known

• New zone of higher grade

mineralisation intersected

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SUMMARY

• Strong quarter of production at Prominent Hill with return to

100,000 tonne per year copper production run-rate.

• First production achieved at Malu Underground.
• High quality Pre-Feasibility Study at Carrapateena successfully

demonstrates viability.

APPENDICES

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Section 6545700mN is clipped with a window of +/-100m. DD13FDR005 was previously released in 2013 ASX Q2. FD002 was drilled in 2007 by Teck Cominco Australia. *Intervals calculated using a 0.1% Cu cut-off grade with unlimited internal dilution. **Intervals calculated using a 0.7% Cu cut-off grade up to/including 4m internal dilution.

CARRAPATEENA: FREMANTLE DOCTOR

Q3 DD14FDR010 (SECTION VIEW)

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Section 739515mE is clipped with a window of +/-100m. DD12FDR003 and DD12FDR004 was previously released in 2012 ASX Q4. DD13FDR005 was previously released in 2013 ASX Q2. DD14FDR006 was previously released in 2014 ASX Q2. FD002 was drilled in 2007 by Teck Cominco Australia. *Intervals calculated using a 0.1% Cu cut-off grade with unlimited internal dilution. **Intervals calculated using a 0.7% Cu cut-off grade up to/including 4m internal dilution.

CARRAPATEENA: FREMANTLE DOCTOR

Q3 DD14FDR005W1 (SECTION VIEW)

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JAMAICA

BELLAS GATE PROJECT, CONNORS PROSPECT, Q3 DRILLING RESULTS (PLAN VIEW)

Three holes drilled at Connors prospect to date. Results from CON14-003 received during the quarter:

270,700 mE 271,000 mE 1,999,200 mN 1,999,400 mN

CON14-001

CON14-003

CON14-002

Alluvium Connors Porphyry Complex Ginger Ridge Stock Browns Hall Formation Surface Geology Legend

100 m N

Hole Number From (metres) Interval (metres) Copper (%) Gold (g/t) CuEq (%) *^CON14-001 39.0 260.0 0.44 0.19 0.55 Including 91.0 107.0 0.59 0.34 0.79 *^CON14-002 11.0 112.0 0.48 0.33 0.66 Including 11.0 59.0 0.55 0.49 0.83 *CON14-003 34.0 297.0 0.40 0.24 0.54 Including 86.0 55.0 0.67 0.59 1.01 Including 279.0 27.0 0.85 0.32 1.04

*^Results shown were previously released in the 2014 ASX Q2. *Intervals calculated using unlimited dilution. Note: Copper equivalents are calculated using a US$3.00/lb. copper and a US$1200 per ounce gold price assuming 100% recovery of both metals. Intersections are drilled lengths only. Too little information is available to estimate actual true widths.

COMPETENT PERSON’S STATEMENT The information in this report that relates to Exploration Results in respect to the Fremantle Doctor and Connors Prospects is based on and fairly represents information and supporting documentation compiled by Mr Anthony Houston BSc, a Competent Person who is a member of the Australian Institute of Geoscientists. Mr Houston is a full-time employee of OZ Minerals Limited. Mr Houston is a shareholder of OZ Minerals and is entitled to participate in the OZ Minerals Long Term Incentive Plan. Mr Houston has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Houston consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Please refer to accompanying Quarterly report for JORC 2012 Table 1 information.