For personal use only Leveraged to cashflow from nickel Gold and - PowerPoint PPT Presentation

For personal use only • Leveraged to cashflow from nickel • Gold and PGM optionality • Exploration success UBS Resources, Energy and Utilities Conference Sydney 17June 2014 ASX: PAN www.panoramicresources.com 0

Forward looking statements This presentation may contain certain “forward - looking statements” which may not have been based solely on historical facts, but rather may be bas ed on the Company’s current expectations about future events and results. Such forward-looking statements may include, without limitation: • estimates of future earnings, the sensitivity of earnings to metal prices and foreign exchange rate movements; For personal use only • estimates of future metal production and sales; • estimates of future cash flows, the sensitivity of cash flows to metals prices and foreign exchange rate movements; • statements regarding future debt repayments; • estimates of future capital expenditures; • estimates of reserves and statements regarding future exploration results and the replacement of reserves; and • statements regarding modifications to the Company’s hedge position. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the Countries and States in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward - looking statement” to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. 1

Agenda 1 • Company Overview For personal use only 2 • Leveraged to Nickel 3 • Leveraged to PGMs 4 • Leveraged to Gold 5 • Summary 6 • Additional Information 2

Key drivers for sustainability + Safety For personal use only + Good people + Good culture + Production + Cash flow + Margins + Mine life + Diversification + Dividends + Capital growth = Sustainable Business 3

Our portfolio – nickel, copper, cobalt, gold, platinum, palladium For personal use only Pt + Pd 2.8M oz Au 2.5M oz Ni 187kt Cu 39kt Co 3kt See appendices for full Resource & Reserves tables 4

Corporate info and share price performance 12 month performance against peers Market Cap and Enterprise Value For personal use only Pro forma PAN.ASX EVN.ASX IGO.ASX MCR.ASX OZL.ASX RMS.ASX SLR.ASX WSA.ASX ASX Ticker ASX:PAN PAN 285% Shares on issue ~320M ~$0.73 235% Share Price (16 June 2014) 185% Market Cap ~A$235M ~A$55M 135% Cash (31 May 2014) 85% Bank debt Nil 35% 13 Jun 13 18 Jul 13 22 Aug 13 26 Sep 13 31 Oct 13 05 Dec 13 14 Jan 14 19 Feb 14 26 Mar 14 05 May 14 10 Jun 14 Enterprise Value ~A$180M Price, Volume & Performance (Rebased) 5

Strong board and management team For personal use only Peter Harold Chris Langdon Brian Phillips John Rowe Managing Director Non Executive Director Non Executive Chairman Non Executive Director Trevor Eton John Hicks Terry Strong Angus Thomson Chris Williams Tracey Ram CFO/Company Secretary Chief Operating Office Executive GM General Manager General Manager General Manager Finance and Accounting Exploration, Resources, Nickel Operations Business Development Project Development & Human Resources Technical Services Geology Gold, PGM Experienced Board and management team with track record of discovery, development and production 6

Safety – our number one value For personal use only 7

Corporate history • 2001 Acquired Savannah (Sally Malay) Listed on ASX with $3M IPO For personal use only • 2003 Offtake signed with Jinchuan and Sino Mining $52M debt facility secured • 2004 Savannah mine and plant commissioned • 2005 Purchased Lanfranchi • 2006 Lanfranchi re-commissioned Deacon orebody discovered • 2007 Record profit $88.1M Maiden fully franked dividend 12 cents • 2010 Savannah offtake extended to 2020 • 2011 Acquired Gidgee Gold • 2012 Acquired Mt Henry Gold Magma Metals takeover (Thunder Bay North PGM) Acquired Panton PGM • 2014 Savannah North discovery 8

Dividends - paid $104.7M fully franked to-date Panoramic Dividend History For personal use only 18 16 14 6.5 12 10 5.0 8 6 12.0 10.0 2.0 4 7.0 2 2.0 4.0 4,440 2.0 1.0 1.0 0 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 Interim Dividend (cents per share) Final Dividend (cents per share) 9

Our nickel business Generating cash flow For personal use only • Two mines • Strong production history • Cost down, productivity up • Loyal workforce • Exploration potential 10

Nickel market tightens Impact of Indonesian ban on laterite exports For personal use only Recent developments • The implementation of the Indonesian ore export ban on 12 Jan 2014 Possible export ban on Norilsk could impact • 10% of primary nickel supply ~30% price rally since January 2014 • Currently ~US$8.15/lb (13 June 2014) • (peaked at US$10.00/lb 1 April 2014) Macquarie Bank forecasting +US$13/lb • Most forecasters predicting Ni prices above current levels in the medium/longer term 11

Savannah history • 2001 Acquired asset For personal use only • 2002 Bankable Feasibility Study completed Resource 64kt Ni Reserve 53kt Ni Mine Life 4-5 years 2003 - Offtake agreement Jinchuan & Sino Mining 2001 – Acquired Sally Malay Project • 2003 Offtake with Jinchuan/Sino Mining $65M project financing completed • 2004 Mine and plant commissioned • 2008 Resource upgrade by 55% to 70kt Ni • 2010 Lower Zone Reserve of 43kt Ni 2004 – Open pit mining commences 2004 – Savannah Plant Commissioned • 2010 Offtake extended to 2020 • 2014 Savannah North discovery 2014 – Major new discovery Savannah North 2010 – Offtake agreement extended with Jinchuan 12

Savannah – production and mine life extension For personal use only • Production ~80kt Ni between 2004 and 2013 from an initial Reserve of ~50kt Ni • Mine life - extended from an initial 6 years to over 12 years (to FY17) excluding Savannah North 13

Savannah – major achievements • Improved metallurgical recovery For personal use only • 78% to 87% for nickel 70% to 89% for cobalt • • 98% to 95% for copper • Significant mine life extension From 2009 to 2017 • (before Savannah North) • Cost reduction (18% reduction y-on-y) • March Quarter 2013, A$5.84/lb • March Quarter 2014, A$4.81/lb • Productivity improvements ore mined (+20% increase y-on-y) March Quarter 2013, ~166kt Ni • March Quarter 2014, ~203kt Ni • 14

Savannah – current status • FY14 production ~8.6kt Ni forecast ~5kt Cu For personal use only ~450t Co • C1 Cash Costs < US$5.00/lb • Mining rate ~750-850ktpa • Resources* • Savannah ~70kt Ni ~37kt Cu ~4kt Co • Copernicus ~8kt Ni ~5kt Cu ~300t Co See appendices for full Resource & Reserves tables at 30 June 2013 15

Savannah – immediate future • FY15 preliminary production guidance * For personal use only Nickel ~8-9kt Ni • Copper ~5-5.5kt Cu • • Cobalt ~400-450t Co • FY15 Exploration • Savannah North ongoing Resource drilling below the 900 Fault • Exploration budget ~$15M * including • exploration drive • Cost Savings • Lock in current savings Find additional savings • • Productivity • Maximise production *Preliminary guidance and exploration budget subject to final Board approval 16

Savannah North - major discovery Significant intersections • KUD1525 intersected 89.3m @ 1.60% Ni , 0.76% Cu, For personal use only 0.12% Co from 704.9m including: • KUD1525B intersected 33.7m @ 1.56% Ni including: 25.7m @ 1.79% Ni • • KUD1525C completed at 939m and intersected: 5.36m@ 1.88% Ni from 687.74m • 3.32m @ 1.34% Ni from 744.28m; and • • 6.62m @ 1.77% Ni from 851.38m • Surface hole SMD157 intersected 7.69m @ 2.22% Ni from 1,346m • Another exploration success underpinned by applying sound geological principles Plan View of Savannah North Project area showing latest drilling information 17

Savannah North – cross section view (looking west) • Broad zones of disseminated sulphides on For personal use only the North Olivine Gabbro open up potential new exploration front • Strong off-hole EM response in KUD1525 and SMD153 not yet explained • Follow up drilling required • Planning for new exploration drive is in progress requiring potentially 600-800m of development • Drive available in December 2014 quarter for an estimated cost of ~$4M 18