Growth by discovery, acquisition and development Feb 2012
PanAust: production and a pipeline for growth � Phu Kham Operation providing strong cash flow � Ban Houayxai Gold-Silver Project: first gold production scheduled for March 2012 � Phu Kham Upgrade and Increased Recovery Projects to lift annual copper in concentrate output Phu Kham Copper-Gold Operation, Laos � Nam San copper-gold deposit, Laos � Inca de Oro, Chile: an alliance with Codelco and a beach-head into South America � Phonsavan Copper-Gold Project, Laos Inca de Oro Copper-Gold Project, Chile
Phu Kham: a foundation for growth � 2011 production: 59,897t of copper in concentrate at an average C1 cash cost of US$1.01/lb after precious metal credits i PanAust 2011 EBITDA ii of US$284M; � net cash flow from operating activities of US$239M � Cash-flow has funded 2011 capital expenditure on development projects � Phu Kham district: Nam San discovery adjacent to Phu Kham and a potential new discovery at LCT, 6km to the northwest i: C1 direct operating costs, based on payable copper in concentrate produced, after precious metal credits from: 53,590oz gold, 538,123oz silver. ii: Earnings before interest, tax, depreciation and amortisation on a group consolidated basis. Additional financial results are included in the supplementary slides of this presentation Data shown on a 100% equity basis.
Phu Kham Upgrade � Mill processing rate to increase by 33% to a nominal 16Mtpa on primary ore; potential to process 17Mtpa of softer lower grade ore � Timed to coincide with scheduled decline in head grades in 2012 as deeper primary ore is mined and processed � Commissioning scheduled for the June quarter 2012 with ramp-up extending into the September quarter 2012 � Capital cost estimate of US$95M (includes contingency of US$14M) Data shown on a 100% equity basis.
Phu Kham Upgrade � Increased plant capacity: � Grinding power up from 26MW to 39MW allowing finer grind; and � Flotation up 50% � Will collectively deliver 2% absolute Flotation cell foundation work improvement in copper recovery � Design copper in concentrate production capacity to increase to between 65,000tpa and 70,000tpa Data shown on a 100% equity basis. Ball mill foundation work
Phu Kham: Increased recovery project � Annual copper and gold in concentrate to increase by approximately 5,000t and 7,500oz respectively; potential to lift Phu Kham copper production to between 70,000t and 75,000t in 2014 � Increased recovery achieved through less selective rougher flotation together with increased regrind, cleaner flotation and concentrate handling capacity � Plant scale tests confirmed the concept � Preliminary capital cost estimate US$65M � Low technical risk, rapid payback � Fast track approach; targeting commissioning in Sept quarter 2013
Nam San copper-gold deposit � Higher-grade Nam San discovery 200m north of the Phu Kham copper-gold Nam San mineralisation now confirmed over a strike length of over 500m; remains open to the east, northwest and at depth deposit Scout drilling has previously returned broad intersections of Cu-Au mineralisation up to � 1km from the planned Phu Kham open-pit Lateral continuity of mineralisation over 500m; remains open to the east, northwest and at depth � Drilling to be accelerated with the Phu Kham ultimate objective of defining an inferred mineral pit outline resource in the second half of 2012 � Conceptual studies have commenced to investigate possible portal locations for underground access, mining methods and mining rates � Potential to displace or augment lower grade open pit sourced mill feed
Nam San copper-gold mineralisation Nam San copper-gold deposit Final Phu Kham pit shell
Ban Houayxai Gold-Silver Project � Open pit mining operation feeding a conventional 4Mtpa CIL gold plant; potential to treat >4Mtpa on softer oxide ore � Nominal annual production capacity of 100,000oz of gold and 700,000oz of silver; lower initial silver production on partly silver- depleted oxide ore � Nine-year mine life from 2012 � Low strip ratio of 1.1:1; good metallurgical recoveries: +90% for gold and +70% for silver on oxide/ transitional ore Data shown on a 100% equity basis.
Ban Houayxai: status � Commissioning in progress; first gold production scheduled for March 2012 � Total estimated capital cost of construction, including contingency of US$12M and US$5M of deferred capital i is expected to be US$200M ICMI ii announced in January 2012 that � Ban Houayxai, Feb 2012 Ban Houayxai had been pre-operationally certified in compliance with International Cyanide Management Code i: Required to fund the second lift of the tailings storage facility 2012 (after operations commence). ii: International Cyanide Management Institute Data shown on a 100% equity basis.
PanAust FY2012 guidance � Phu Kham: between 63,000t and 65,000t of copper in concentrate at a C1 cash cost of between US$1.05/lb and US$1.15/lb after precious metal credits from 50,000oz to 55,000oz of gold and 550,000oz to 600,000oz of silver � Ban Houayxai: approximately 85,000oz of gold at a cash cost of between US$550/oz and US$600/oz after a credit from approximately 200,000oz of silver EBITDA i expected to be between � US$340M and US$400M assuming copper prices between US$3.50/lb and US$4.00/lb i: Earnings before interest, tax, depreciation and amortisation on a group consolidated basis. Financial guidance assumes the mid-point of production guidance and gold and silver prices of US$1,800/oz and US$30/oz respectively. Data shown on a 100% equity basis.
Inca de Oro S.A.: alliance with Codelco � PanAust has a 59.4% beneficial interest in Codelco subsidiary, Inca de Oro S.A., through a 90% interest in PanAust Minera; Codelco retains a 34% interest � Provides geographic diversity and a beach- head into South America � Consistent with PanAust’s corporate growth strategy � PanAust is managing the Inca de Oro feasibility study: scheduled for completion in mid-2012 for consideration by the joint venture and PanAust Boards in the September quarter 2012
PanAust South America projects, Chile � Inca de Oro: potential for the development of an operation producing, on average, 50,000t copper and 40,000oz gold per annum over a +10year mine life � First three years of production to benefit from higher-grade supergene ore � Project benefits from existing infrastructure � Potential for development of Inca de Oro and Artemisa oxides � Carmen copper-gold deposit acquired by PanAust in 2010 Data shown on a 100% equity basis.
Phonsavan Copper-Gold Project, Laos � Comprises two deposits, KTL and Tharkhek, located 5km apart � Scoping study underway: contemplates two open pit mines feeding a central processing plant Phonsavan Copper- � Pre-feasibility resource drill program Gold Project in progress Phonsavan: � Population 57,000 � Excellent access to power and road infrastructure � ~250km to coast - Vietnam
Pipeline for growth: Projects (PanAust share i ) ii iii Phu Kham copper-gold Phu Kham Upgrade Phu Kham IRP iv Ban Houayxai Inca de Oro 140 120 Copper Eq. v (t 000's) 100 80 60 40 20 0 2011 2012 2013 2014 2015 i: PanAust Limited share of production: 90% share of Phu Kham and Ban Houayxai , 59.4% share of Inca de Oro. ii: Incorporates implementation of the Phu Kham Upgrade from July 2012 with a mid-point of the expanded annual copper production capacity range of 65kt-70kt. iii: Incorporates implementation of the Phu Kham Increased Recovery Project December quarter 2013 and assumes an annual production increase (100% equity basis) of 5,000t copper and 7,500oz gold. iv: Subject to feasibility study and project approvals; assumes December half 2014 start-up and an average annual production rate of 50kt copper and 40koz gold. v: Copper equivalent assumptions: copper US$3.75/lb, gold US$1,800/oz, silver US$30/oz.
Pipeline for growth: Commodities i Copper Gold and silver 140 120 Copper Eq. ii (t 000's) 100 80 60 40 20 0 2011 2012 2013 2014 2015 i: PanAust Limited share of production: 90% share of Phu Kham and Ban Houayxai , 59.4% share of Inca de Oro. ii: Copper equivalent assumptions: copper US$3.75/lb, gold US$1,800/oz, silver US$30/oz.
Supplementary slides
PanAust Limited securities � Listed on the Australian Securities Exchange (ASX:PNA); constituent of the S&P/ASX100 index � Issued securities 597M shares 6.1M unlisted options & rights � Share price 21 Feb 2012 A$3.68 � Market capitalisation A$2.2Bn � 12-month average daily turnover ~A$13M � Substantial shareholders Guangdong Rising Assets Management (GRAM) ~20% � Shareholding structure ~71% institutional investors (incl. GRAM) � Top 20 shareholders ~52%
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