Business SummaryOZ Minerals Limited (OZL) is an Australian based mining company with afocus on copper. OZL owns and operates the Prominent copper-gold mineand the Carrapateena copper-gold mines in South Australia.

Prominent Hill Project: The project is located 650km NW of Adelaide and130km SE of Coober Pedy, SA. The project comprises three main resourcesareas namely Ankata, Kalaya and Malu. The project is both an open pit andan underground mine. The mine contains Copper concentrate (containinggold and silver). The Ankata underground mine is expected to be operationaltill the year 2023. Till 30 September 2017 , the Prominent Hill operationproduced 82,122 tonnes of copper and 87,535 ounces of gold.

Carrapateena Project: The project is located 250km SE of Prominent Hill,160km north of Port Augusta in SA. The project is on the eastern margin ofthe Gawler Craton, consisting of Iron Oxide Copper-Gold deposit. The projectcomprises of four exploration licences covering an area of 1,070sqkm.Construction of Carrapateena is underway and commissioning is scheduledfor Q4 2019 after which the project will ramp up to steady state production.

West Musgrave Project: The project is located in the Musgrave Province ofWestern Australia and includes the Nebo-Babel nickel-copper and Succothcopper deposits. OZ Minerals is hoping to establish the West Musgraveproject as a scaleable, low cost, long life, open pit mining operation. InNovember 2017 OZ Minerals and Cassini announced that the WestMusgrave project would progress to a Pre-Feasibility Study.

Latest ResearchGood start to 2020

OZL announced March 2020 quarterly production of 20.2kt copper and55.6koz gold at a C1 cash cost of US$0.09/lb (BPe 19.4kt Cu and 49.1kozAu at US$0.05/lb). Copper production was in-line with our forecast andgold ~13% ahead of our forecast. The March quarter saw the plannedprioritisation of the processing of gold ore stockpiles at Prominent Hill,where C1 costs dropped to –US26.8c/lb on increased by-product credits.During the quarter OZL implemented a comprehensive response to theCOVID-19 pandemic, enabling it to keep operating with no materialproduction

disruptions. OZL has, however, suspended non-critical exploration anddevelopment activities and lowered formal CY20 CAPEX guidance by~$100-$120m. At end March OZL held cash of $61m, down from $134m atend December. During the quarter OZL drew down $150m from itsrevolving credit facility for a net debt position of $89m. It expects to be netcash positive by the end of the current quarter.

For more information see research 23 Apr 2020.

GICS - Materials

OZ Minerals Limited

ASX Code: OZL Price: $13.70 12 Mth Target Price: $10.58 Rating: Buy

Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investmentobjectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement withBell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell PotterSecurities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document.This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is generalinvestment advice only and does not constitute advice to any person.Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies recommended.

Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

14 August 2020$4,448m324.7m$14.39$5.83

RatingRating12 Mth Target Price

Capital GainGross Yield

Implied Total Return

Buy$10.58-22.8%2.3%-20.5%

Investment FundamentalsFYE 31 Dec 2019A 2020F 2021F 2022F

Profit $m 163.9 105.2 261.4 239.3Profit (norm)* $m 163.9 105.2 261.4 239.3

EPS* ¢ 50.7 32.3 80.3 73.5EPS Growth % -29.1 -36.2 148.4 -8.4P/E* x 27.0 42.4 17.1 18.6P/E Relative % 0.0 0.0 0.0 0.0

DPS ¢ 23.0 12.0 22.0 22.0Yield % 1.7 0.9 1.6 1.6Franking % 100.0 100.0 100.0 100.0* Adjusted for goodwill and unusual itemsSource: Based on Bell Potter estimates

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2015A 2016A 2017A 2018A 2019A

Sales Revenue 879 823 1,023 1,117 1,093Total Revenue ex. Int. 998 1,060 1,218 1,127 1,108EBITDA 480 489 644 460 348Depreciation & Amort. -285 -362 -324 -148 -115Goodwill Amortisation -- -- -- -- --EBIT 194 127 321 312 234Net Interest 3 9 9 7 -5Profit Before Tax 197 136 329 319 229Income Tax -60 -28 -98 -90 -65Outside Equity Int. -- -- -- -- --Profit after Tax 138 108 231 228 164Significant Items after Tax -8 -- -- -6 --Reported Profit after Tax 130 108 231 222 164Preferred Dividends -- -- -- -- --

Cash Flow ($M)2015A 2016A 2017A 2018A 2019A

Receipts from Customers 930 874 1,000 1,204 1,140Funds from Operations 467 344 432 654 647Net Operating Cashflow 430 324 343 450 511Capex -251 -125 -197 -426 -764Acquisitions & Investments -- -- -- -183 --Sale of Invest. & Subsid. 126 3 -- -- --Net Investing Cashflow -78 -122 -197 -610 -764Proceeds from Issues -- -- -- -- --Dividends Paid -18 -61 -60 -68 -74Net Financing Cashflow -21 -98 -67 -68 -122Net Increase Cash 331 104 79 -228 -375Cash at Beginning 218 552 656 729 505Exchange Rate Adjust. 3 -1 -5 3 4Cash at End 552 656 729 505 134

Ratios and Substantial Shareholders2015A 2016A 2017A 2018A 2019A

Profitability RatiosEBITDA Margin % 54.53 59.39 62.97 41.20 31.88EBIT Margin % 22.11 15.46 31.35 27.92 21.37Net Profit Margin % 15.67 13.10 22.59 20.44 15.00Return on Equity % 5.88 4.58 9.18 7.83 5.50Return on Assets % 5.50 4.23 8.27 6.73 4.48

Debt/Safety RatiosNet Debt/Equity % -23.57 -27.85 -28.99 -17.33 1.67Interest Cover x -67.03 -14.13 -36.86 -45.20 47.65

Top 5 Substantial ShareholdersBlackRock Group 7.8%Dimensional Entities 6.0%The Vanguard Group,Inc 5.0%

Balance Sheet ($M)2015A 2016A 2017A 2018A 2019A

Cash & Equivalent 552 656 729 505 134Receivables 99 77 152 93 106Inventories 143 197 262 277 238Other Current Assets 5 14 4 29 8Current Assets 799 944 1,148 904 486Prop. Plant & Equipment 1,262 991 1,176 2,078 2,872Intangibles 252 -- -- -- --Other Non-Current Assets 40 42 4 29 8Non-Current Assets 1,767 1,686 1,678 2,539 3,328Total Assets 2,566 2,631 2,826 3,443 3,814Interest Bearing Debt -- -- -- -- 184Other Liabilities 222 276 310 528 650Total Liabilities 222 276 310 528 834Net Assets 2,344 2,354 2,516 2,915 2,980Share Capital 2,058 2,027 2,028 2,279 2,280Reserves -- 4 -4 -2 -22Retained Earnings 286 324 492 638 721Outside Equity Int. -- -- -- -- --Total Shareholders Equity 2,344 2,354 2,516 2,915 2,980

Current Analyst Recommendations *

* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.

Principals & DirectorsPrincipals

Company Secretary Ms Michelle Pole

Directors

Mr Richard Phillip Seville(Non-Executive Director)Mr Charlie Sartain(Non-Executive Director)Mr Peter Wasow(Non-Executive Director)Ms Rebecca Joy McGrath(Non-Executive Director,Non-ExecutiveChairman)Ms Tonianne Dwyer(Non-Executive Director)Mr Andrew Cole(Chief Executive Officer,Managing Director)

To access further Research or for information regarding our recommendations and ratings please seewww.bellpotter.com.au

© 2020 Morningstar, Inc. All rights reserved. Neither Morningstar, its affiliates, nor the content providers guarantee the data or content contained herein to be accurate, complete or timely nor will they have any liabilityfor its use or distribution. Any Morningstar ratings/recommendations contained in this report are based on the full research report available from Morningstar or your adviser. Any general advice or ‘class service’ havebeen prepared by Morningstar Australasia Pty Ltd (ABN: 95 090 665 544, AFSL: 240892) and/or Morningstar Research Ltd, subsidiaries of Morningstar, Inc, without reference to your objectives, financial situation orneeds. Refer to our Financial Services Guide (FSG) for more information at www.morningstar.com.au/s/fsg.pdf. You should consider the advice in light of these matters and if applicable, the relevant ProductDisclosure Statement before making any decision to invest. Our publications, ratings and products should be viewed as an additional investment resource, not as your sole source of information. Past performancedoes not necessarily indicate a financial product’s future performance. To obtain advice tailored to your situation, contact a professional financial adviser. Some material is copyright and published under licence fromASX Operations Pty Ltd ACN 004 523 782.

OZ Minerals Limited

Bell Potter Securities Research

AFS Licence No. 243480 ABN 25 006 390 772

Email info@bellpotter.com.au

Website www.bellpotter.com.au