2018 AGM May 2018 March 2018
Disclaimer This presentation (Presentation) has been prepared by Finders Resources Limited (Finders) based on information available to it and from third party differ and may be affected by known and unknown risks. The performance and operations of Finders may be influenced by a number of factors, many of sources. which are outside the control of Finders. No representation or warranty, express or implied, is made by Finders, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved By retaining this Presentation, you (the Recipient) acknowledge and represent to Finders that you have read, understood and accepted the terms of this Important Notice. If you do not accept these terms, you should immediately destroy or delete this Presentation. Given the risks and uncertainties that may cause Finders' actual future results, performance or achievements to be materially different from those expected, planned or intended, Recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. This Presentation does not purport to contain all the information that a prospective investor may require in connection with any potential investment in Finders does not warrant or representthat the actual results, performanceor achievements will be as expected, planned or intended. Finders. You should not treat the contents of this Presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. Exploration targets: References to Exploration Targets or Targets in this document are in accordance with guidelines of the JORC Code (2012). As such it is important to note No representation or warranty is made by Finders or any of its advisers, agents or employees as to the accuracy, completeness or reasonableness of the that the reported targets are based on existing data, historical production and geology models. Any references to grade and quantity are conceptual in information contained in this Presentation or provided in connection with it. No information contained in this Presentation or any other written or oral nature. Exploration carried out to date is insufficient to be able to estimate and report mineral resources in accordance with the JORC Code (2012). It is communication in connection with it is, or shall be relied upon as, a promise or representation and no representation or warranty is made as to the uncertain if further exploration will result in the determination of a Mineral Resource. accuracy or attainability of any estimates, forecasts or projections set out in this Presentation. No liability will attach to Finders with respect to any such information, estimates, forecasts or projections. Finders does not accept responsibility or liability for any loss or damage suffered or incurred by you or any other person or entity however caused (including, without limitation, negligence) relating in any way to this Presentation including, without limitation, the information contained in or provided in connection with it, any errors or omissions from it however caused (including without limitation, where caused by third parties), lack of accuracy, completeness, currency or reliability, or you or any other person or entity placing any reliance on this Presentation, its accuracy, completeness, currency or reliability. Finders does not accept any responsibility to inform you of any matter arising or coming to Finders' notice after the date of this Presentation which may affect any matter referred to in this Presentation. Any liability of Finders, their advisers, agents and employees to you or to any other person or entity arising out of this Presentation including pursuant to the Australian Securities and Investments Commission Act 2001, Corporations Act 2001, Part IVA or V (including sections 51AA, 51AB, 51AC, 52 or 53) of the Trade Practices Act 1974 or any corresponding provision of any state or territory legislation, or similar provision under any applicable law is, to the maximum extent permitted by law, expressly disclaimed and excluded. The distribution of this Presentation may be restricted by law in certain jurisdictions. Recipients and any other persons who come into possession of this Presentationmust inform themselves about, and observe any such restrictions. Future matters: This Presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of Finders. Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may FINDERS 2018 AGM PRESENTATION / / MAY 2018 / / PAGE 2
Corporate Snapshot PROJECT FINANCIALS (BTR) CAPITAL STRUCTURE Finders 74.1% 788.8 million 1 Ordinary shares Debt Facility (31 March 2018) US$52 million Share Price (23 May 2018) A$0.205 Cash inc. DSRA (31 March 2018) US$15 million A$161.7 million 3 Market Capitalisation (23 May 2018) Hedge (31 March 2018) US$(13.5) million Net assets (31 December 2017) A$132.9 million MAJOR SHAREHOLDERS BOARD OF DIRECTORS 83% 1 Eastern Fields Development Limited Colin Moorhead Non-executive Chairman Taurus Funds Management Pty Ltd 11% David Fowler Executive Director & Acting CEO Eastern Fields Development Limited is an investor group comprising of The Provident Group, PT Saratoga Investama Sedaya Tbk and PT Merdeka Gavin Caudle Non-Executive Director Copper Gold Tbk. The group has extensive investment and operating experience across the Indonesian archipelago including the successful Gordon Galt Non-Executive Director development and operation of Stage 1 of the world class Tuju Bukit copper- gold project located in East Java. Rod Webster Non-Executive Director 1. Eastern Field Developments Limited had received acceptances under the takeover offer for 94.11% of voting Mark Sherman Non-Executive Director power in Finders comprising of 742,336,889 Finders shares. This amount includes acceptances for 87,339,525 shares managed by Taurus Funds Management Pty Ltd, being equal to 11.31% of the shares currently on issue. The Takeovers Panel, by its declaration and orders dated 26 April 2018, ordered that the Taurus acceptances be cancelled on expiry of the takeover offer period FINDERS 2018 AGM PRESENTATION / / MAY 2018 / / PAGE 3
2017 maiden full year of operation • Copper cathode produced: • Copper cathode produced: 4,100 tonnes 6,804 tonnes • C1 cash cost: US$1.45/lb • C1 cash cost: US$1.02/ lb • AISC cost: US$2.53/lb • AISC cost: US$1.33/lb • Project EBITDA: US$6.8 million • Project EBITDA: US$22.5 million • Production impacted by “crud run event”, crushing performance, rehandle of dump leach material and slow leaching March 2017 Quarter June 2017 Quarter September 2017 Quarter December 2017 Quarter • Copper cathode produced: • Copper cathode produced: 6,125 tonnes 6,131 tonnes • C1 cash cost: US$1.03/lb • C1 cash cost: US$1.15/lb • Project EBITDA: • AISC cost: US$1.66/lb US$21.9 million • Project EBITDA: US$21.0million FINDERS 2018 AGM PRESENTATION / / MAY 2018 / / PAGE 4 MARCH 2018 / / PAGE 4
Robust margins at full capacity At nameplate capacity Wetar has low unit costs and is highly leveraged to copper prices However, the project has a high 4.00 fixed cost based 3.50 Moderate reductions in production US$ per lb copper 3.00 levels can have a serious impact on 2.50 earnings 2.00 1.50 1.00 0.50 0.00 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Copper sale price AISC cost C1 cash cost FINDERS 2018 AGM PRESENTATION / / MAY 2018 / / PAGE 5
Production shortfall over last 8 months Leaching has been 40% below nameplate capacity over Q4’17 and Q1’18 Several initiatives pursued to 8,000 improve leaching including: ⁃ re-mining heaps Copper Production (t) 6,000 ⁃ re-installing aeration ⁃ expanding pad space 4,000 ⁃ managing free acid Leaching has improved 2,000 However the free acid is reducing the copper stripping efficiency 0 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Copper stripped Copper sold Nameplate Capacity FINDERS 2018 AGM PRESENTATION / / MAY 2018 / / PAGE 6
Re-mining heaps Restore condition of heaps and access greater proportion of pad copper inventories Re-mining lifts higher-grade, poorly leached material from deep in the pad to closer to the surface The surface of some pads were “blinded” from accumulated gypsum preventing percolation of the lixiviant Pads had to some degree experienced compaction and settling of fines promoting channelling A negative short term impact of re- mining is the reduction of area under irrigation temporarily reducing copper production potential FINDERS 2018 AGM PRESENTATION / / MAY 2018 / / PAGE 7
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