Oz Metals 20141109

Oz Metals 9th Nov 2014

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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WHERE IS THE FLOOR FOR THE GOLD PRICE? Base Metals & Precious Metals Fundamentals

Sources: Metal Prices, RBA, Terra Studio

$40

$45

$50

$55

$60

$65

$70

Jan-14 Apr-14 Jul-14

CIF

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Bauxite

US$/t $A/t

$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

0

100

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400

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Jan-14 Apr-14 Jul-14 Oct-14T

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Copper

SHFE COMEX LME

US$ A$

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

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

Gold

A$

US$

$15.0

$17.5

$20.0

$22.5

$25.0


Silver

A$

US$

$5.50

$6.50

$7.50

$8.50

$9.50

$10.50

0

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500


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Nickel

LME US$ A$

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

$1.20

$1.25

0

200

400

600

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1,000

1,200

1,400

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1,800


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Zinc

SHFE LME

US$ A$


DISCLAIMER



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Markets & Majors

Peruvian Mines and Energy Minister Eleodoro Mayorga said the Latin American country is hoping to retake its position as the world's second biggest copper producer in the next few years as companies continue to advance investment projects despite lower metal prices.

BHP Billiton Ltd. will only make a decision on expanding its Olympic Dam copper-uranium-gold mine in South Australia after it has squeezed out efficiency gains that can be made through incremental improvements. With a US$20 billion expansion again being considered, the company is expected to make a decision on the project later this year.

Glencore copper production increased year over year for the first nine months of the year. However, the output of most of its other commodities fell. Own-sourced copper production in the first nine months grew by 8%, to nearly 1.15 million tonnes, compared to 1.07 million tonnes for the same period in 2013, mainly boosted a 48% increase in production at Mutanda after the completion of the expansion project at the end of 2013. Continued ramp-up at Katanga and higher production at Collahuasi also contributed to the increase.

AFR - Rio Tinto has plagued its huge Oyu Tolgoi project in Mongolia, with the shock ousting of the country's prime minister set to blow out any resolution on a much-delayed funding deal. Mongolia's dumped Prime Minister, Norovyn Altankhuyag, said that he hoped to strike a deal for the troubled US$4.2 billion expansion project before Christmas. But this fresh snag for Rio will likely see any deal delayed until at least the new year. The ousting should spawn an election, where Oyu Tolgoi will no doubt form a part of any prime ministerial aspirant's sales pitch. Rio Tinto could book a write-down of up to US$2.5 billion against its Oyu Tolgoi copper mine in Mongolia, according to The Times.

Nautilus Minerals entered an agreement to charter a vessel to use at its preproduction-stage Solwara 1 copper-gold-silver undersea mining project in Papua New Guinea's Bismarck Sea. The agreement is with Dubai-based Marine Assets Corp, which will own and provide marine management for the ship. Nautilus Minerals plans to charter the vessel for a minimum five-year period at a rate of US$199,910 per day, with options to extend the charter or purchase the ship at the end of the agreed period.

Computer rendition of Nautilus' floating base.

Funding, Mergers & Acquisitions

Antofagasta has agreed to acquire Duluth Metals for about C$96 million in cash. Antofagasta currently owns 14.2 million common shares of Duluth Metals, equivalent to a 10.4% stake. It also holds a 40% interest in Twin Metals Minnesota LLC, a joint venture with the Ontario-based company. The planned acquisition consolidates Antofagasta's ownership of Twin Metals Minnesota to 100%. The joint venture is focused on developing the Twin Metals base and precious metals project within the Duluth Complex in northeastern Minnesota. A 30-year underground operation at Twin Metals could produce 5.8 billion pounds of copper, 1.2 billion pounds of nickel, 1.5 million ounces of platinum, 4.0 million ounces of palladium, 1.0 million ounces of gold and 25.2 million ounces of silver, according to a pre-feasibility study on the project.


DISCLAIMER



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Finders Resources Ltd. and its Indonesian subsidiary — PT Batutua Tembaga Raya — signed a US$165 million senior project finance facility agreement, which satisfies the last condition precedent for Daewoo International Corp.'s share subscription agreement with Finders, providing the miner with further equity and loans of US$45 million. The miner intends to use the funds for the expansion of its Wetar copper project in Indonesia.

Private equity firm Denham Capital Management LP will embark on a new Australia-focused mining venture called Auctus Minerals LLC, The Australian reported. The venture is looking to acquire development-ready mining projects that have been stalled on financial constraints. Denham will provide Auctus Minerals with US$130 million in capital.

Major shareholder Trafigura has increased its stake in EMED Mining to 19.35%. In mid-October, Trafigura requested that EMED call a shareholder meeting to vote on the removal of the company's entire board and replaced the directors with four appointees of Trafigura. EMED is working to bring the Rio Tinto copper project in Spain back into production and expects to receive the mining permit and approval of the final restoration plan before the end of 2014, which will allow the company to begin full-scale mining and processing.

Zijin Mining Group inked a deal to acquire 51% equity interest in La Compagnie Minière de Musonoie Global SAS, which is based in the Democratic Republic of Congo, for about US$77.9 million. The target's core asset is the Kolwezi copper mine project in Congo, which is still under the stage of feasibility study and design and has not yet been put into commercial production, according to Chinese newspaper Ta Kung Pao.

Bauxite Sector

Source: ASX

Copper Producers

Source: SNL

Copper Developers & Explorers

Source: SNL

Gold Producers

Source: SNL

Code Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABX Australian Bauxite 0.32 — 0% 45% 41 2 39

BAU Bauxite Resources 0.12 ▼ (4%) 0% 28 41 (13)

CBX Cape Alumina 0.017 ▲ 6% (43%) 4 1 3


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

ABY Aditya Birla Minerals 0.19 ▼ (21%) (44%) 60 137 (77) NM

AOH Altona Mining 0.24 — 0% 45% 128 18 113 3.2x

HGO Hillgrove Resources 0.51 ▼ (7%) (29%) 75 16 89 2.2x

KBL KBL Mining 0.034 ▼ (23%) (23%) 13 7 29 1.8x

OZL OZ Minerals 3.57 ▼ (8%) 13% 1,083 364 928 5.1x

PNA PanAust 1.58 ▼ (8%) (12%) 1,006 146 1,227 NA

SFR Sandfire Resources 5.18 ▼ (8%) (20%) 807 58 910 4.1x

SRQ Straits Resources 0.005 — 0% (38%) 6 13 129 17.5x

TGS Tiger Resources 0.21 ▼ (21%) (41%) 234 42 367 NA

985 CST Mining 0.006 ▼ (2%) (36%) 175 146 17 NM

1208 MMG 0.38 ▼ (3%) 54% 1,997 154 3,932 4.3x

3993 China Molybdenum 0.73 ▲ 6% 41% 6,121 347 6,739 NA

MWE Mawson West 0.13 ▼ (10%) (78%) 23 54 17 NM


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ARE Argonaut Resources 0.016 ▼ (11%) (32%) 7 2 4

AVB Avanco Resources 0.080 ▼ (9%) 13% 133 32 101

AVI Avalon Minerals 0.040 ▼ (90%) (96%) 6 1 5

AZS Azure Minerals 0.022 ▼ (4%) (26%) 18 1 17

BTR Blackthorn Resources 0.21 ▼ (19%) (19%) 35 12 22

CDU CuDeco 1.12 ▼ (19%) (38%) 264 9 254

ENR Encounter Resources 0.17 ▼ (13%) (13%) 22 4 18

ERM Emmerson Resources 0.033 ▼ (8%) (15%) 12 2 11

FND Finders Resources 0.170 ▲ 13% (18%) 112 8 97

GCR Golden Cross Resources 0.095 ▲ 4% (5%) 9 2 7

GPR Geopacific Resources 0.061 ▼ (8%) 103% 18 3 17

HAV Havilah Resources 0.130 ▼ (13%) (46%) 20 1 19

HCH Hot Chili 0.20 ▼ (9%) (54%) 68 13 66

HMX Hammer Metals 0.095 — 0% (53%) 8 1 7

IAU Intrepid Mines 0.20 ▼ (11%) (37%) 112 11 (25)

IRN Indophil Resources 0.28 — 0% 70% 337 215 128

KDR Kidman Resources 0.080 ▼ (16%) (57%) 9 3 7

KGL KGL Resources 0.25 ▼ (7%) 138% 35 7 21

MEP Minotaur Exploration 0.16 ▼ (6%) 7% 28 5 24

MNC Metminco 0.011 — 0% (65%) 20 8 16

PEX Peel Mining 0.065 ▲ 8% (75%) 9 3 5

RDM Red Metal 0.16 ▼ (9%) 3% 27 2 25

RXM Rex Minerals 0.20 ▼ (9%) (58%) 44 3 42

SMD Syndicated Metals 0.037 ▼ (5%) 9% 10 2 8

SRI Sipa Resources 0.037 ▼ (8%) (34%) 10 2 8

SUH Southern Hemisphere 0.055 — 0% 10% 14 2 11

THX Thundelarra Resources 0.115 — 0% 203% 37 1 36

XAM Xanadu Mines 0.095 — 0% 90% 23 4 24

Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

Austral Gold 0.13 — 0% 8% 22 NA 84 6.9x

Alkane Resources 0.22 ▼ (4%) (37%) 89 16 73 10.8x

Aurelia Metals 0.26 ▼ (13%) 13% 89 22 174 NM

Beadell Resources 0.26 — 0% (68%) 204 10 266 2.1x

Doray Minerals 0.31 ▼ (20%) (46%) 51 16 50 1.5x

Evolution Mining 0.55 ▼ (8%) (11%) 393 32 523 2.6x

Independence Group 4.19 ▼ (8%) 35% 982 57 953 6.8x

Kingsgate Consolidated 0.62 ▼ (14%) (30%) 139 54 239 NM

Kingsrose Mining 0.32 ▼ (12%) (4%) 115 7 120 NM

Lachlan Star 0.030 ▼ (25%) (85%) 5 2 22 8.2x

Minera Gold 0.004 ▼ (11%) (43%) 10 0 15 NM

Metals X 0.19 ▼ (12%) 9% 306 57 249 3.6x

Medusa Mining 0.50 ▼ (17%) (76%) 103 14 99 1.8x

Millennium Minerals 0.063 ▼ (10%) (67%) 14 2 52 5.3x

Newcrest Mining 8.79 ▼ (6%) 13% 6,735 141 10,796 NM

Norton Gold Fields 0.13 ▲ 8% (4%) 121 38 222 NA

Northern Star Resources 0.97 ▼ (12%) 24% 574 82 498 6.0x

OceanaGold Corp. 2.11 ▲ 12% 26% 635 28 758 4.2x

PanTerra Gold 0.026 ▼ (26%) (37%) 21 6 89 4.3x

Perseus Mining 0.25 ▼ (19%) 2% 132 37 101 18.3x

Ramelius Resources 0.040 ▼ (15%) (59%) 19 12 9 NM

Regis Resources 1.29 ▼ (7%) (56%) 642 7 676 NM

Resolute Mining 0.23 ▼ (30%) (59%) 144 19 176 1.7x

Saracen Mineral Holdings 0.22 ▼ (23%) 22% 174 36 153 3.6x

St Barbara 0.11 ▼ (5%) (60%) 52 79 312 NM

Silver Lake Resources 0.26 ▼ (7%) (52%) 128 24 117 NM

Tribune Resources 2.82 ▼ (8%) 21% 142 11 156 9.1x

Troy Resources 0.44 ▼ (26%) (45%) 85 43 82 NM

Unity Mining 0.010 ▲ 11% (76%) 11 7 5 NM


DISCLAIMER



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Gold Developers & Explorers

Source: SNL

Nickel Sector

Source: SNL

Zinc & Poly-metallic Sector

Source: SNL

For further information, please contact: J-François Bertincourt

m +61 406 998 779

[email protected]


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABU ABM Resources 0.28 ▼ (15%) (15%) 77 10 66

AWV Anova Metals 0.040 ▼ (2%) 100% 10 1 8

AZM Azumah Resources 0.025 ▼ (17%) (11%) 10 4 7

BLK Blackham Resources 0.099 ▲ 4% (42%) 12 1 11

BSR Bassari Resources 0.011 ▼ (21%) 38% 13 - 13

CHN Chalice Gold Mines 0.12 ▼ (4%) (15%) 33 44 (11)

CHZ Chesser Resources 0.17 ▲ 3% 62% 38 1 39

DCN Dacian Gold 0.29 ▼ (17%) 21% 21 11 10

EXG Excelsior Gold 0.057 ▼ (5%) (17%) 26 1 25

FML Focus Minerals 0.009 ▼ (10%) (25%) 82 81 82

GCY Gascoyne Resources 0.11 ▼ (15%) (21%) 18 1 17

GMR Golden Rim Resources 0.008 ▼ (11%) (27%) 8 1 10

GOR Gold Road Resources 0.22 ▼ (16%) 117% 127 10 118

GRY Gryphon Minerals 0.073 ▼ (15%) (57%) 29 34 (6)

IDC Indochine Mining 0.016 — 0% (63%) 19 0 21

KGD Kula Gold 0.064 ▼ (9%) (39%) 12 3 11

MSR Manas Resources 0.023 ▼ (4%) (28%) 10 6 8

MUX Mungana Goldmines 0.12 ▲ 14% 344% 20 5 15

MYG Mutiny Gold 0.030 ▼ (19%) (5%) 20 3 17

OBS Orbis Gold 0.55 ▲ 4% 120% 137 5 133

OGX Orinoco Gold 0.095 ▼ (2%) (26%) 12 1 13

PXG Phoenix Gold 0.080 ▼ (9%) (48%) 30 9 20

RED Red 5 0.090 ▲ 8% 2% 68 38 30

RNI Resource & Investment 0.075 ▼ (22%) 42% 35 5 50

RNS Renaissance Minerals 0.070 ▼ (18%) 17% 28 2 26

SIH Sihayo Gold 0.010 ▼ (23%) (66%) 10 0 6

SXG Southern Cross Goldfields 0.012 ▼ (8%) (8%) 16 3 18

TAM Tanami Gold 0.014 ▼ (13%) (36%) 16 1 23

WPG WPG Resources 0.042 ▼ (2%) 45% 11 5 6


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

IGO Independence Group 4.19 ▼ (8%) 35% 982 57 953 6.8x

MCR Mincor Resources 0.56 ▼ (10%) (7%) 104 26 82 2.6x

PAN Panoramic Resources 0.51 ▼ (15%) 104% 164 64 108 2.2x

WSA Western Areas 4.24 ▼ (2%) 79% 985 231 972 6.7x

AVQ Axiom Mining 0.014 ▼ (7%) (7%) 46 0 45 NM

CZI Cassini Resources 0.12 ▼ (29%) 140% 14 8 6 NM

LEG Legend Mining 0.009 — 0% 13% 18 5 14 NM

MLM Metallica Minerals 0.055 ▼ (11%) 10% 9 1 8 NM

PIO Pioneer Resources 0.014 ▼ (18%) 17% 9 1 7 NM

POS Poseidon Nickel 0.17 ▲ 3% 117% 99 4 130 NM

SEG Segue Resources 0.008 ▼ (33%) 100% 12 1 11 NM

SGQ St George Mining 0.075 ▼ (17%) (21%) 8 1 7 NA

SIR Sirius Resources 2.75 ▼ (11%) 21% 939 59 880 NM

TLM Talisman Mining 0.16 ▼ (3%) 48% 20 16 4 NM

WIN Winward Resources 0.16 ▼ (11%) (20%) 10 6 4 NM


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AQR Aeon Metals 0.105 ▼ (13%) (19%) 32 5 39

CCU Cobar Consolidated 0.058 — 0% (52%) 19 6 31

DGR DGR Global 0.036 ▲ 9% 20% 15 0 16

HRR Heron Resources 0.14 ▼ (3%) 0% 51 33 18

IBG Ironbark Zinc 0.096 ▼ (4%) 66% 42 2 40

IPT Impact Minerals 0.024 ▲ 4% (40%) 14 1 13

IVR Investigator Resources 0.021 ▼ (13%) (55%) 10 3 7

MRP MacPhersons Resources 0.090 ▼ (22%) (50%) 27 7 20

RDM Red Metal 0.16 ▼ (9%) 3% 27 8 19

RXL Rox Resources 0.036 ▼ (5%) 9% 31 3 28

TZN Terramin Australia 0.098 ▲ 3% 250% 129 5 178

VXR Venturex Resources 0.005 ▼ (17%) (50%) 8 3 4

Oz Metals 20141109

Economy & Finance

Transcript of Oz Metals 20141109