oz metals 20150124

Oz Metals 16th Edition – 24th Jan 2015

DISCLAIMER

This report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do not accept liability

for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein. Readers should seek investment advice from their professional advisors before acting upon information contained herein.

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A$ GOLD REACHING A 2-YEAR HIGH! Base Metals & Precious Metals Fundamentals

Sources: COMEX, LME, RBA, SHFE

$50

$55

$60

$65

$70

Jan-14 Apr-14 Jul-14

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Bauxite

US$/t $A/t

$2.3

$2.6

$2.9

$3.2

$3.5

$3.8

$4.1

0

100

200

300

400

500

600

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15

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Copper

SHFE COMEX LME

US$ A$

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700


Gold

A$

US$

$15.0

$17.5

$20.0

$22.5

$25.0


Silver

A$

US$

$6

$9

0

100

200

300

400

500


$/lb

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Nickel

LME US$ A$

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

0

200

400

600

800

1,000

1,200


$/lb

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Zinc

SHFE LME US$ A$


DISCLAIMER



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Markets & Majors

Thomson Reuters - Chinese hedge funds, once again linked

to a powerful sell-off in copper were probably replaying an

aggressive short-selling strategy they have also used to

target iron ore and coal, according to industry sources. This

indicates the growing clout of the secretive Chinese funds in

global commodity markets as they tap their home-ground

advantage in the world's biggest consumer of copper and

other commodities. Chinese funds such as Shanghai Chaos

Investment Co and Zhejiang Dunhe Investment Co are said

by traders to be behind at least three big drops in copper in

a year, one in March last year when the metal fell more than

8% in three days. Neither of these two funds returned calls

seeking comment on the latest market moves. Other funds

involved include Flowinvest China Commodities Trading,

Yihui Investment and Shanghai Discovering Investment,

market sources said.

Minería Chilena - The vice president of Chile's state mining

company Empresa Nacional de Minera, Jaime Pérez de

Arce, said he intends to slowly make the company profitable

again after posting an US$80 million loss in 2014, Pérez de

Arce said the company plans to tackle the losses by

reducing costs at its main smelter, Paipote.

El Comercio - The sharp decline in copper prices in January

has raised doubts among analysts about the development of

the Quellaveco and La Granja copper projects in Peru,

owned by Anglo American and Rio Tinto, respectively.

Reuters - The copper, aluminum and tin output of China hit

a record in December 2014, according to figures from the

National Bureau of Statistics. The production of zinc and

lead in the country, meanwhile, contracted during the month

as low prices and increased environmental requirements

prompted some operations to stop.

The deficit in the global refined zinc market narrowed to

255,000 tonnes in the first 11 months of 2014, compared to

the 277,000 tonnes recorded in the first 10 months of the

year, according to the International Lead and Zinc Study

Group. The refined lead market, meanwhile, was in balance.

Bloomberg - Gold futures closed above US$1,300/oz for the

first time since August 2014 after the European Central

Bank announced plans to buy €60 billion of assets a month

through September 2016. "The size of the package was a

positive surprise for the gold market, and we are seeing an

increase in safe-haven buying after the plunge in the euro,"

said David Meger, director of metal trading at HighRidge

Futures LLC.

SNL - In the six months to 31 Dec 2014, BHP Billiton total

iron ore output increased 16% to a record 113.4 million

tonnes, while metallurgical coal output rose 21% to a record

26.3 million tonnes. Production of manganese ores during

the period rose 7% to a record 4.6 million tonnes.

Meanwhile, total copper output during the half dropped 4%

to 813,100 tonnes, while energy coal output tumbled 3% to

about 36.5 million tonnes. Aluminum and nickel output

slumped 16% and 11% year over year to 517,000 tonnes

and 69,900 tonnes, respectively. In November 2014, BHP

Billiton said the review of its Nickel West operations in

Western Australia was complete and the preferred option —

the sale of the business — was not achieved on an

acceptable basis.

SNL - While mining majors such as Freeport-McMoRan and

Newmont Mining have been busy bemoaning the

implementation of a ban on exports of raw minerals in

Indonesia in early 2014, their Chinese counterparts have

been quietly pouring money into the base metals-rich

Southeast Asian nation in a bid to build processing plants

and secure access to strategic resources. However, many

such Chinese initiatives have come up against speed

bumps, according to analysts closely following their

progress.

Bloomberg - Freeport-McMoRan earmarked US$17 billion in

investments for its Indonesian operations. The company's

PT Freeport Indonesia unit will build a smelter in East Java

that will cost over US$2 billion and process 2 million tonnes

of copper concentrate per year. The miner will also spend

US$15 billion to develop underground copper and gold

deposits its Grasberg mine complex in Papua, Indonesia,

the report added, citing Maroef Sjamsuddin, president

director of Freeport Indonesia.

Gold Fields anticipates attributable gold equivalent

production of 556,000 ounces for the fourth quarter, at all-in

sustaining costs of US$1,030 per ounce. For the full year,

Gold Fields' gold equivalent production is expected to be

about 20,000 ounces higher than the original guidance of

2.2 million ounces, at all-in sustaining costs of US$1,060/oz.

The West Australian - BHP Billiton Ltd. flagged an after-tax

impairment of up to US$350 million from the value of its

Nickel West operations, following the mining giant's failure

to find a buyer for the troubled division.

Unclassified

Mining.com - Japanese scientists have developed a process

that uses salmon sperm, also known as milt, to mine and

reprocess rare earth elements (REEs) from ore and

materials such as magnets and electronic waste. Currently

the extraction REEs is costly and potentially environmentally

damaging. But the new method proposed by the University

of Tokyo team, could provide a clean and cost effective

alternative.


DISCLAIMER



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SNL - Mining in space is tipped to become a reality within

the next decade as NASA aims to have the first person on

Mars by 2030. Currently, it is extremely expensive to

transport the resources required to colonize a planet in

space. Researchers are now looking into the possibility of

mining these resources from asteroids, as well as from

planets such as Mars.

Australian Companies

The West Australian - Ivernia Inc. will place its Paroo Station lead operation in Western Australia on care and maintenance next month — the third closure of the mine since 2007 — due to falling metal prices. The closure will result in the layoff of over 200 jobs.

Pacific Niugini received approvals for its Nicolsons project's mining proposal and mine closure plan from the Department of Mines and Petroleum, paving the way for the recommencement of operations and production from the underground gold mine in Western Australia.

Mawson West has placed its Dikulushi copper-silver mine in the Democratic Republic of the Congo on care and maintenance. The company made the decision alongside its lenders, Trafigura and Galena Resources Fund, after reviewing Dikulushi as well as the preproduction-stage Kapulo copper property. As part of a wider corporate review, the Perth-based miner also plans to reduce staff at the Kapulo project in a bid to adjust corporate structure and costs.

Bloomberg - Metals X CEO Peter Cook said that the

company is aiming to produce about 8,000 tonnes of tin-in-

concentrate in 2015 from its Renison mine in Tasmania — a

bit more than the 7,000 tonnes produced in 2014 — and that

Metals X is looking to develop a nearby project, which may

provide a further 5,000 tonnes a year.

The Australian - Saracen Mineral Holdings Managing

Director Raleigh Finlayson is bullish on advancing the

Thunderbox gold project in Western Australia. "I couldn't

think of a better time to be developing a gold project — it is

a perfect trifecta of diesel-fuel, labor and commodity price at

the moment," Finlayson said.

Transactions, Mergers & Acquisitions

Leyshon cancels deal to buy majority stake in South Korean tungsten company. Leyshon Resources said that it will no longer go through with its planned acquisition of a 50.1% interest in private Korean company International Tungsten Services Ltd, citing declining tungsten prices. The deal failed to meet Leyshon's financial return targets due to the "expanding project timetable."

Panoramic Resources Ltd. said that Rio Tinto will proceed with a deal to earn a 70% stake in its Thunder Bay North platinum group metal project in Ontario. Following completion of the first phase of the agreement, Rio Tinto Exploration Canada Inc. has now committed to spending

C$20 million over the next five years to earn its interest in the project.

Bauxite Sector

Source: Bloomberg, SNL

Lithium-Tantalum Sector

Source: SNL

Copper Developers & Explorers

Source: SNL

Copper Producers

Source: SNL

Code Company NameClose

Price

Week

rYTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABX Australian Bauxite 0.270 ▼ (4%) (11%) 34 2 33

BAU Bauxite Resources 0.105 ▲ 7% 7% 24 31 (6)

MLM Metallica Minerals 0.060 ▲ 9% 9% 10 1 9

MMI Metro Mining 0.040 ▲ 8% 48% 12 8 4


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AJM Altura Mining 0.047 ▼ (2%) (28%) 22 3 37

GXY Galaxy Resources 0.027 ▲ 8% 8% 29 3 95

ORE Orocobre 2.84 ▲ 1% 2% 375 26 350

PLS Pilbara Minerals Ltd. 0.040 ▼ (17%) (5%) 25 3 22

RDR Reed Resources 0.033 ▼ (3%) (13%) 16 7 NA


Price

Week

rYTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ARE Argonaut Resources 0.012 ▼ (14%) (25%) 5 2 2

AVB Avanco Resources 0.077 ▲ 4% 1% 128 32 96

AVI Avalon Minerals 0.020 ▼ (31%) 0% 3 1 2

AZS Azure Minerals 0.018 ▼ (5%) (25%) 15 1 14

CDU CuDeco 1.41 ▲ 4% (28%) 343 9 333

CVV Caravel Minerals 0.012 ▼ (8%) 50% 9 1 NA

ENR Encounter Resources 0.14 ▼ (10%) 4% 18 4 14

ERM Emmerson Resources 0.034 ▲ 21% 10% 13 2 11

FND Finders Resources 0.14 ▼ (3%) (7%) 93 8 77

GCR Golden Cross Resources 0.078 — 0% 11% 7 2 5

GPR Geopacific Resources 0.046 ▼ (18%) (12%) 15 3 15

HAV Havilah Resources 0.145 — 0% 4% 23 1 21

HCH Hot Chili 0.17 ▲ 22% 3% 57 13 55

HMX Hammer Metals 0.082 ▲ 1% 0% 7 1 6

IAU Intrepid Mines 0.13 ▼ (7%) (7%) 46 10 (102)

IRN Indophil Resources 0.30 — 0% 0% 355 215 146

KDR Kidman Resources 0.050 — 0% (25%) 6 3 3

KGL KGL Resources 0.19 ▼ (8%) (18%) 26 7 12

MEP Minotaur Exploration 0.13 ▲ 4% (14%) 23 5 NA

MNC Metminco 0.007 — 0% (13%) 13 8 10

MTH Mithril Resources 0.006 ▲ 20% (14%) 3 2 1

PEX Peel Mining 0.060 ▼ (12%) (13%) 8 3 5

RDM Red Metal 0.07 ▼ (15%) (16%) 12 2 10

RER Regal Resources 0.043 — 0% (7%) 8 2 5

RTG RTG Mining 0.790 ▲ 25% 36% 88 11 82

RXM Rex Minerals 0.11 ▼ (12%) 0% 24 3 22

SMD Syndicated Metals 0.027 ▲ 8% (16%) 7 2 5

SRI Sipa Resources 0.040 ▲ 3% 8% 24 4 20

SUH Southern Hemisphere 0.040 — 0% (7%) 10 2 7

THX Thundelarra Resources 0.105 ▼ (9%) (5%) 34 7 26

XAM Xanadu Mines 0.091 ▼ (9%) (9%) 33 4 34


Price

Week

rYTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

ABY Aditya Birla Minerals 0.20 — 0% 0% 61 137 (43) NA

AOH Altona Mining 0.23 ▼ (2%) (6%) 120 18 105 2.9x

HGO Hillgrove Resources 0.38 ▼ (7%) (17%) 55 16 70 1.7x

KBL KBL Mining 0.030 — 0% 0% 12 7 27 1.7x

MWE Mawson West 0.020 ▼ (43%) (60%) 4 48 32 NM

OZL OZ Minerals 3.45 ▲ 11% (1%) 1,047 364 892 4.9x

PNA PanAust 1.33 ▲ 9% (6%) 847 130 1,087 NA

SFR Sandfire Resources 4.22 ▲ 11% (7%) 658 58 761 3.5x

SRQ Straits Resources 0.004 — 0% (20%) 5 13 128 17.3x

TGS Tiger Resources 0.11 ▼ (8%) (15%) 126 37 269 NA

985 CST Mining 0.044 ▲ 2% 0% 1,192 136 99 0.2x

1208 MMG 2.31 ▲ 6% (4%) 12,219 137 25,141 4.1x

3993 China Molybdenum 5.00 ▲ 2% 11% 57,766 1,883 61,826 NA


DISCLAIMER



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Nickel Sector

Source: SNL

Gold Producers

Source: SNL

Gold Developers & Explorers

Source: SNL

Tin Sector

Source: SNL

Zinc & Poly-metallic Sector

Source: SNL

For further information, please contact:

J-François Bertincourt

m +61 406 998 779

[email protected]

au.linkedin.com/in/jfbertincourt


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

IGO Independence Group 4.70 ▲ 10% 6% 1,101 57 1,072 7.6x

MBN Mirabella Nickel 0.029 — 0% 0% 27 31 64 NA

MCR Mincor Resources 0.67 ▲ 2% 15% 126 26 104 3.3x

PAN Panoramic Resources 0.48 ▲ 22% 13% 153 64 97 2.0x

WSA Western Areas 4.05 ▲ 15% 8% 942 231 929 6.4x

AVQ Axiom Mining 0.014 ▲ 8% (7%) 47 2 45 NM

CZI Cassini Resources 0.12 ▼ (12%) (4%) 13 8 6 NM

LEG Legend Mining 0.009 ▲ 13% 29% 18 7 11 NA

MAT Matsa Resources 0.160 ▼ (6%) (6%) 23 3 21 NM

MLM Metallica Minerals 0.060 ▲ 9% 9% 10 1 9 NA

PIO Pioneer Resources 0.017 ▲ 6% 31% 10 1 9 NM

POS Poseidon Nickel 0.11 — 0% (8%) 75 4 106 NM

SEG Segue Resources 0.008 ▲ 60% 60% 16 1 15 NM

SGQ St George Mining 0.067 ▲ 3% 6% 7 1 6 NA

SIR Sirius Resources 2.78 ▲ 18% 9% 949 59 890 NM

TLM Talisman Mining 0.14 ▼ (13%) (13%) 18 16 2 NM

WIN Winward Resources 0.11 ▼ (13%) (34%) 9 6 3 NM


Price

Week

rYTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

AGD Austral Gold 0.10 — 0% (23%) 48 NA 113 8.8x

ALK Alkane Resources 0.25 ▲ 11% 14% 104 16 88 13.0x

AMI Aurelia Metals 0.27 ▲ 8% 13% 93 22 178 NM

BDR Beadell Resources 0.35 ▼ (5%) 53% 276 10 337 NA

DRM Doray Minerals 0.54 ▼ (8%) 13% 122 16 122 3.8x

EVN Evolution Mining 1.00 ▲ 14% 54% 711 32 841 4.1x

IGO Independence Group 4.70 ▲ 10% 6% 1,101 57 1,072 7.6x

KCN Kingsgate Consolidated 0.79 — 0% 20% 177 54 277 NM

KRM Kingsrose Mining 0.29 ▼ (2%) 14% 104 7 110 NM

LSA Lachlan Star 0.024 ▼ (20%) 20% 4 2 22 NA

MIZ Minera Gold 0.003 — 0% 0% 8 0 13 NA

MLX Metals X 1.04 ▲ 6% 32% 433 57 376 5.4x

MML Medusa Mining 0.85 — 0% 31% 177 13 172 2.8x

MOY Millennium Minerals 0.040 ▲ 8% 8% 9 2 47 NA

NCM Newcrest Mining 13.80 ▲ 6% 27% 10,578 141 14,639 NM

NGF Norton Gold Fields 0.19 — 0% 48% 172 38 273 NA

NST Northern Star Resources 2.10 ▲ 6% 41% 1,244 82 1,167 14.0x

OGC OceanaGold Corp. 2.63 ▲ 14% 30% 792 NA 923 4.7x

PGI PanTerra Gold 0.016 ▼ (6%) (11%) 14 5 85 NA

PRU Perseus Mining 0.37 ▲ 7% 42% 195 37 159 6.8x

RMS Ramelius Resources 0.135 ▲ 23% 165% 63 12 53 NM

RRL Regis Resources 2.00 ▼ (5%) 4% 1,000 7 1,033 NM

RSG Resolute Mining 0.43 ▲ 12% 60% 273 19 NA NA

SAR Saracen Mineral Holdings 0.42 ▲ 12% 63% 329 36 307 7.3x

SBM St Barbara 0.20 ▲ 5% 86% 97 79 357 NM

SLR Silver Lake Resources 0.30 ▼ (2%) 54% 151 24 140 NM

TBR Tribune Resources 3.20 ▼ (2%) 21% 160 11 175 10.1x

TRY Troy Resources 0.72 ▲ 6% 57% 141 43 138 NM

UML Unity Mining 0.011 — 0% 57% 13 7 NA NA


Price

Week

rYTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABU ABM Resources 0.34 ▲ 10% 17% 93 10 83

AWV Anova Metals 0.040 ▲ 11% 48% 10 1 9

AZM Azumah Resources 0.036 ▲ 13% 80% 14 4 12

BLK Blackham Resources 0.098 ▲ 9% 92% 14 1 14

BOK Black Oak Minerals 0.38 ▲ 25% 39% 16 3 19

BSR Bassari Resources 0.019 ▲ 19% 58% 22 - 22

CHN Chalice Gold Mines 0.14 ▲ 17% 33% 40 44 (5)

CHZ Chesser Resources 0.03 ▲ 7% (11%) 7 1 8

DCN Dacian Gold 0.40 ▲ 25% 43% 29 11 18

EXC Exterra Resources 0.013 — 0% 0% 2 1 2

EXG Excelsior Gold 0.084 ▲ 22% 38% 39 2 38

FML Focus Minerals 0.009 ▼ (10%) 29% 82 81 82

GCY Gascoyne Resources 0.12 ▲ 9% 69% 20 1 19

GMR Golden Rim Resources 0.008 ▼ (11%) 60% 10 1 11

GOR Gold Road Resources 0.38 ▲ 15% 55% 226 10 216

GRY Gryphon Minerals 0.084 ▲ 11% 31% 34 34 NA

IDC Indochine Mining 0.012 ▼ (14%) 0% 15 0 17

KGD Kula Gold 0.055 ▲ 22% 25% 14 3 14

MSR Manas Resources 0.021 ▲ 24% 50% 9 6 7

MUX Mungana Goldmines 0.10 ▼ (5%) (24%) 23 5 18

MYG Mutiny Gold 0.058 ▲ 2% 32% 40 3 37

OBS Orbis Gold 0.63 ▲ 7% 13% 157 5 153

OGX Orinoco Gold 0.070 ▲ 8% 19% 10 1 11

PNR Pacific Niugini 0.057 ▲ 2% 14% 18 3 15

PXG Phoenix Gold 0.140 ▲ 17% 43% 52 9 42

RED Red 5 0.110 — 0% 20% 84 38 45

RNI Resource & Investment 0.080 ▲ 7% 7% 39 5 54

RNS Renaissance Minerals 0.070 ▲ 13% 8% 28 2 26

SIH Sihayo Gold 0.010 — 0% 25% 11 0 8

TAM Tanami Gold 0.018 ▲ 13% 29% 21 1 28

WAF West African Resources 0.105 ▲ 5% 5% 28 3 27

WPG WPG Resources 0.043 ▼ (4%) 13% 11 5 6


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

CSD Consolidated Tin Mines 0.060 ▲ 25% 46% 17 0 18

ELT Elementos 0.007 ▼ (13%) (13%) 5 1 5

KAS Kasbah Resources Limited 0.060 ▲ 11% 11% 27 4 21

MLX Metals X Limited 1.04 ▲ 6% 32% 433 57 376

MOO Monto Minerals 0.002 — 0% 0% 3 1 2

SRZ Stellar Resources Limited 0.026 ▲ 13% (10%) 8 4 NA

VMS Venture Minerals Limited 0.039 ▲ 15% 26% 11 7 5


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AQR Aeon Metals 0.100 ▲ 16% 0% 30 5 37

DGR DGR Global 0.034 ▼ (3%) 6% 14 0 15

HRR Heron Resources 0.13 ▲ 4% 4% 47 33 16

IBG Ironbark Zinc 0.096 ▲ 7% 20% 42 2 40

IPT Impact Minerals 0.026 ▲ 4% 8% 15 1 NA

IVR Investigator Resources 0.018 ▼ (10%) 13% 8 3 5

MRP MacPhersons Resources 0.140 ▲ 33% 12% 44 7 37

MTA Metals of Africa 0.140 ▲ 33% 12% 44 8 36

PNX Phoenix Copper 0.027 ▼ (18%) (10%) 10 3 7

RDM Red Metal 0.068 ▼ (15%) (16%) 12 8 4

RVR Red River Resources 0.16 ▲ 3% 45% 28 9 19

RXL Rox Resources 0.028 ▲ 12% 0% 24 3 21

TZN Terramin Australia 0.140 ▲ 12% 27% 197 5 246

VXR Venturex Resources 0.004 — 0% (20%) 6 1 5

oz metals 20150124

Economy & Finance