oz minerals prominent hill site tour · 10/28/2010 · 80% of our people are from south australia....
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28 October 2010WWW.OZMINERALS.COM
OZ MINERALSPROMINENT HILL SITE TOUR
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 • PAGE 3
OZ MINERALS
Operation
Exploration
Headquarters
AUSTRALIA
MEXICO
SAN EDUARDO
PROMINENT HILL
COBAR
CAMBODIA
PICHASCA
CHILE
OZ MINERALS • PAGE 4
OZ MINERALS SNAPSHOT
• Revitalised mid-cap mining company.
• Sole operating asset is Prominent Hill.
• Market capitalisation of A$4.9b.
• A workforce of approximately 1000 (including contractors).
• Active exploration program around Prominent Hill, advanced gold exploration project in Cambodia and further global and regional opportunities.
• Recent acquisition of 19.7% of Sandfire Resources NL, IMX joint venture –
pursuing further opportunities.
• Cash balance of A$1.4b as at June 30 2010.
OZ Minerals relative share price performance vs. S&P/ASX 200
75
85
95
105
115
125
135
145
Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10
%
OZL ASX
OZ MINERALS • PAGE 5
PROMINENT HILL –
DISCOVERY 2001
• 2001 Initial discovery by Minotaur.
• 2003 Oxiana Joint Venture.
• 2005 Oxiana takes over Minotaur 100% ownership, pre feasibility Study and conceptual development plan.
• 2006 Bankable feasibility study, environmental and native title approvals.
• 2007 Project development and construction, and first ore.
• 2009 First ore to mill February and first shipment April.
OZ MINERALS • PAGE 6
PROMINENT HILL SITE
TAILINGS DAM
MALU PIT
ROM PAD
PROCESSING PLANT
VILLAGE
ANKATA DEPOSIT AREA
NORTHERN WASTE DUMP
SOUTHERN WASTE DUMP
OZ MINERALS • PAGE 7
PROMINENT HILL VILLAGE
OZ MINERALS • PAGE 8
PROMINENT HILL FACTS
• A workforce of approximately 800 –
this includes contractors. This will increase by 150 during the underground construction phase and by 100 during development.
• We have a local workforce –
80% of our people are from South Australia.
• We have 61 Indigenous employees across the Prominent Hill workforce.
• Mining partner –
Thiess.
• Underground contractor –
Byrnecut
Mining
• Village Services –
Sodexo
• Charter Flight services -
10 flights a week from Adelaide and six flights a week from Port Augusta.
• Site Facilities –
1200 rooms with en-suites, swimming pool, sports courts and gymnasium.
• Regular family days to bring family members to site to experience life at Prominent Hill.
OZ MINERALS • PAGE 9
PROMINENT HILL PRODUCTION
Product: High grade (+50% Cu), high quality, copper concentrate.
Production Guidance: Contained Copper 100,000t to 110,000t (2010-12)
>185,000oz gold (2010).
Production (YTD, SEP 2010): 86,986t contained copper, 142,272oz gold.
Mine and Plant: 60Mtpa open pit, 5-6:1 (waste to ore, tonnes basis),
mine, crush, grind, flotation.
Remaining mine life: 8 years.
Cash costs: Competitive C1 cash costs US47.2c/lb YTD.
OZ MINERALS • PAGE 10
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
OZ MINERALS • PAGE 11
PROMINENT HILL CONCENTRATE
High quality concentrate
−
Currently highest grade copper concentrate traded on the open market –
over 50% copper.
−
Ideal for blending with lower grade concentrates.
−
Low impurities.
−
2-5 year contracts with customers in Europe, India and China.
−
Strategy is to maintain 80-90% contracted.
Tr a de d c onc e nt r a t e s, Cu c ont e nt [ % Cu]
0 10 20 30 40 50 60
Australia
Australia
South America
Australia
South America
AustraliaSouth America
Australia
South America
Asia
Asia
Asia
Asia
Prominent Hill
Source: OZ Minerals
South Australian Export Award –
Minerals & Energy Award October 2010
OZ MINERALS • PAGE 12
SALE OF COPPER CONCENTRATES
•
Sales Plans are set for 2-5 yr periods
•
Sales terms negotiated annually
−
frame, annual & spot
•
Timing of sales adjusted to match production
•
Logistics
−
All transport in ‘kibbles’
approx 12t each
−
6 trains/wk to Darwin (600-1,000t each)
−
48 hrs to Darwin
−
1 truck/day to Olympic Dam
−
2 ships/mth
plus domestic sales
−
Trial shipping via Adelaide successful
−
2 weeks to major Asian ports
To Port of Darwin
Port Adelaide
OZ MINERALS • PAGE 13
SAFETY
• Zero Harm by Choice.
• Plant systems design geared for safety.
• Strong reporting culture.
• Total recordable injury frequency rate at 19 at the end of the quarter.
• Approximately 60% of the total recordable injuries (TRI) year to date have been classified as restricted work injuries, resulting from muscular strains.
• About 25% of our TRI’s
are classified as Medical Treatment Injuries. Examples include the requirement for prescription medication or the use of sutures.
• An Lost Time Injury (LTI) means an absence of at least one day or shift. We have had 8 LTI’s
in 2010.
Total Recordable Injuries YTD 2010
Lost Time Injury20%
Medical Treatment
Injury24%
Restricted Work Duty
Injury56%
OZ MINERALS • PAGE 14
ENVIRONMENT
•
Plant and systems designed for environmental compliance
•
Monitoring of natural resources (water)
-
Borefield, pastoralists’
bores
-
Arckaringa
basin, Independent of the Great Artesian Basin,
-
new industrial water source for SA
•
Mine Rehabilitation requirements:
-
Significant Environment Benefit offset area management
-
Cultural heritage identification and protection
-
Flora and Fauna surveys
-
Mine closure long term planning
OZ MINERALS • PAGE 15
PROMINENT HILL: SKILLS DEVELOPMENT•
6 Pre Employment Programs (PEP) completed
−
Encouraging local recruitment and indigenous recruitment
−
6th
program in the APY lands
−
51 graduates
−
Nationally accredited TAFE qualifications.
−
Guaranteed employment
•
Local preferential employment policy.
•
Dedicated skills training team in process plant.
•
Skills mapping and training programs developed for processing, mining and geology.
South Australian Training Award –
Training Initiative AwardOctober 2010
Diversity@work
awards –
Employment & Inclusion of Indigenous Australians
OZ MINERALS • PAGE 16
ANKATA UNDERGROUND MINE SCHEDULE
• Ventilation shaft construction.
• Cutback to access portal underway.
• Byrnecut
Mining to commence operations in November.
• Underground exploration mid 2011.
Vent Shaft Construction
Portal Establishment
Development Start
First Ore
First Stope
Full ProductionQ3
2010Q4
2010Q1
2011Q2
2011Q3
2011Q4
2011Q1
2012Q2
2012Q3
2012Q4
2012
OZ MINERALS • PAGE 17
PROMINENT HILL –
ANKATA UNDERGROUND MINE CONSTRUCTION UNDERWAY
ANKATADEPOSIT
KALAYAZONE
PAPAZONE
MALU DEPOSITMUNDA ZONE
Ankata
underground access
OZ MINERALS • PAGE 18
PROMINENT HILL –
RECENT NEAR MINE EXPLORATION
ANKATADEPOSIT
PAPAZONE
MALU DEPOSIT
Ankata
underground access
MUNDA ZONE
KALAYAZONE
OZ MINERALS • PAGE 19
EXPLORATION –
ACTIVE PROGRAM
•
Significant exploration budget and commitment.
•
$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%
Cambodia15%
Other20%
Prominent Hill Regional
38%
OZ MINERALS • PAGE 20
REGIONAL EXPLORATION – $14M H2, 6 RIGS BY YEAR END
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.
Investor contact:Natalie WorleyHead of Investor & External Relationsnatalie.worley@ozminerals.com
Within this statement (or 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 of the material in the form and context in which it appears.
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