23 NOVEMBER 2010 ASX Release - OZ Minerals · 2010. 11. 23. · – A$1.43 billion at 30 June 2010 • Active business development – clear strategy – disciplined approach –

01

23 NOVEMBER 2010

ASX Release Retail Shareholder Briefing

Further to our announcement of 12 November, OZ Minerals is broadcasting a retail shareholder briefing via its website today at 10am EDT. The presentation is attached and the briefing will be available for replay following the event. For further information please contact: Natalie Worley Head of Investor and External Relations T 61 3 9288 0345 M 61 0409 210 462 [email protected]

http://www.ozminerals.com/

10AM (AEDT)23 November 2010WWW.OZMINERALS.COM

OZ MINERALSRETAIL SHAREHOLDER BRIEFING

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 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.


OZ MINERALS -

SNAPSHOT ~A$5.5b: Market capitalisation.

Prominent Hill: Open-pit copper and gold operation. Underground development underway.

Exploration: Priority area –

Prominent Hill.Advanced gold exploration project in Cambodia.Further global and regional opportunities.

Business Development:

Recent acquisition 19.7% of Sandfire Resources NL.IMX joint venture.Pursuing other opportunities.

A$1.43b: Cash at 30 June 2010Most convertible bonds converted. Remainder to be redeemed by 24 November 2010 leaving the company debt free.

Equity investments:

42.5% of Toro Energy, 13% of IMX Resources, 19.7% of Sandfire Resources and others.


COMMODITY PRICES

2.5

2.75

3

3.25

3.5

3.75

4

4.25

Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10

$/lb

US$/lb Cu A$/lb Cu

Source: IRESS

900

1000

1100

1200

1300

1400

1500

1600

Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10

$/oz

Gold US$/oz A$/oz

COPPER GOLD


HALF-YEAR FINANCIAL RESULTS

A$M H1 2010

Prominent Hill Revenue 589.9

Prominent Hill EBITDA 391.2

Underlying net profit(excl, reversal of impairment & discontinued operations)

230.5

Reversal of Impairment (less tax impact) 141.1

Discontinued operations after tax 34.1

Group NPAT 405.7

Cash balance at 30 June 1,432.5

Tax losses remaining at 30 June 307

Dividend (unfranked) 3 cps

Solid production and buoyant

commodity prices

Strong cash flow

Non-recurring

Related to 2009 asset sales


Q3 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.


PROMINENT HILL SITE

TAILINGS DAM

MALU PIT

ROM PAD

PROCESSING PLANT

VILLAGE

ANKATA DEPOSIT AREA

NORTHERN WASTE DUMP

SOUTHERN WASTE DUMP


PROMINENT HILL PRODUCTION

Product: High grade (+50% Cu), high quality, copper concentrate.

Production Guidance: 100,000t to 110,000t Contained Copper (2010-12)

>185,000oz gold.

Production (YTD, SEP 2010): 86,986t contained copper, 142,272oz gold.

Mine and Plant: 55Mtpa open pit, 5-6:1 (waste to ore, tonnes basis),

mine, crush, grind, flotation.

Remaining Reserve life: 8 years.

Cash costs: Competitive C1 cash costs US47.2c/lb YTD.

Estimated C1 costs 2010: <US$0.60/lb.

Workforce: Approximately 800 (including contractors).


PROMINENT HILL PLANT PERFORMING WELL

Ore Milled Recovery

0

500

1,000

1,500

2,000

2,500

3,000

Mar 09 Jun 09 Sep 09 Dec 09 Mar 10 Jun 10 Sep-10

Tonn

es ('

000)

•

Plant performance above design capacity.

•

Projects to increase throughput successful.

•

Pleasing recoveries, better than laboratory expectations.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Mar-09 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Sep-10

Reco

very

Copper Gold


PROMINENT HILL –

ANKATA UNDERGROUND MINE CONSTRUCTION UNDERWAY

ANKATADEPOSIT

KALAYAZONE

PAPAZONE

MALU DEPOSITMUNDA ZONE

Ankata

underground access


ANKATA MINE SCHEDULE

• Ventilation shaft construction underway.

• Portal completed.

• First blast in decline 17 November.

• Byrnecut

Mining mobilised and on site.

Vent Shaft Construction

Portal Establishment

Development Start

First Ore

First Stope

Full ProductionQ3

2010Q4

2010Q1

2011Q2

2011Q3

2011Q4

2011Q1

2012Q2

2012Q3

2012Q4

2012


PROMINENT HILL –

RECENT NEAR MINE EXPLORATION

ANKATADEPOSIT

PAPAZONE

MALU DEPOSIT

Ankata

underground access

MUNDA ZONE

KALAYAZONE


PROMINENT HILL REGIONAL EXPLORATION

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 ongoing. Multiple new prospects remain untested.

•

Program of detailed geophysics being gathered for prospective areas.

•

Substantial exploration program –

6 drill rigs for regional exploration by year end.

IMX Targets

OZ Minerals Targets


EL4446

EL4429

EL4390

EL4283

REGIONAL EXPLORATION –

SELECTED RESULTSMagnetics

Mt Hawker Pluto

Halifax Hill

HathornLarissa

Nichol Well

PH South

Bluebird

Umbriel Cressida Scyla

Taurus

Zeus

CalistoEuropa

Kennedy Peculiar

Knob Nth

NeptuneTriton

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 Pd106m @ 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


EXPLORATION PROJECT PIPELINE

Operation

Exploration

Headquarters

AUSTRALIA

MEXICO

SAN EDUARDO

PROMINENT HILL

COBAR

CAMBODIA

PICHASCA

CHILE


•

Actively looking for M&A opportunities.

•

Commodity:

copper or copper with gold.

•

Scale:

50,000t –

150,000tpa production or future production potential.

•

Jurisdiction:

Global “low”

to “medium”

risk countries.

•

Terms:

100% or with partners depending on project.

BUSINESS DEVELOPMENT


SUMMARY• High quality copper asset at Prominent Hill

– strong YTD production performance

– competitive cash costs

– new underground development

– aggressive exploration at Prominent Hill -

near mine and regional

• Significant cash holding

– A$1.43 billion at 30 June 2010

• Active business development

– clear strategy

– disciplined approach

– flexibility of cash

– recent acquisition of 19.7% of Sandfire Resources NL

• Commitment to adding value through exploration

– A$58 million budget for 2010

– focus on large prospective area around Prominent Hill

• Strongly performing commodities

– good outlook for copper and gold

WITHIN THIS PRESENTATION REFERENCES TO EXPLORATION RESULTS RELATING TO PROMINENT HILL ARE BASED ON INFORMATION COMPILED BY MR MARCEL VAN ECK MSC WHO IS A FULL-TIME EMPLOYEE OF OZ MINERALS, IS A MEMBER OF THE AUSTRALIAN INSTITUTE OF GEOSCIENTISTS AND HAS SUFFICIENT EXPERIENCE RELEVANT TO THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITIES UNDERTAKEN TO QUALIFY AS A COMPETENT PERSON AS DEFINED BY THE JORC CODE (2004). MR VAN ECK HAS CONSENTED TO THE INCLUSION OF THE MATERIAL IN THE FORM AND CONTEXT IN WHICH IT APPEARS. ALL OTHER REFERENCES TO EXPLORATION RESULTS WITHIN THIS PRESENTATION/STATEMENT ARE BASED ON INFORMATION COMPILED BY MR A HOUSTON BSC WHO IS A FULL-TIME EMPLOYEE OF OZ MINERALS, IS A MEMBER OF THE AUSTRALIAN INSTITUTE OF GEOSCIENTISTS AND HAS SUFFICIENT EXPERIENCE RELEVANT TO THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITIES UNDERTAKEN TO QUALIFY AS A COMPETENT PERSON AS DEFINED BY THE JORC CODE (2004). MR HOUSTON HAS CONSENTED TO THE INCLUSION OFTHE MATERIAL IN THE FORM AND CONTEXT IN WHICH IT APPEARS.

Documents

23 NOVEMBER 2010 ASX Release - OZ Minerals · 2010. 11. 23. · – A$1.43 billion at 30 June 2010 • Active business development – clear strategy – disciplined approach –