INVESTING IN SUSTAINABLE GROWTH 2007 annual general meeting – CEO business overview
Slide 15 -������ ������������ ������� • Total shareholder Basic EPS & dividends per share (cents) return 87% 43.3 • Record $82.5m 35.6 net profit after tax – up 23 % • Over $200m in cash & receivables 11 5 -3.6 FY2005 FY2006 FY2007 Basic earnings per share Dividends per share Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 16 �����6 ���������������7 • Fatality at Broken Hill • Development of third source of ore at Broken Hill • Development of Flinders stage 1 • Broken Hill reserves sustained above that acquired five years ago • Independent share register • Lead late mover in base metal complex Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 17 8-(�6 �������������� Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 18 Perilya share price versus zinc & lead price (LME Spot) Perilya share price vs zinc & lead price (LME Spot) 1�������-�������� 600 6000 PEM ASX: PEM 500 5000 (CENTS/SHARE) (US$/TONNE) Shares on issue: 196M 400 4000 ZINC Options: 4.3M 300 3000 LEAD 200 2000 Market capitalisation: A$760M (Undiluted at $3.88 per share) 100 1000 0 0 Average daily turnover: 1.1% Oct 2006 Jan 2007 Apr 2007 Jul 2007 Oct 2007 (12 month undiluted average) Geographic analysis of Share Register (28 Sep 2007) 90 KEY SHAREHOLDERS: 75 60 Shares (m) AXA Group: 11.4% 45 Barclays Global Investors: 9.0% 30 Alliance Bernstein: 7.6% 15 Delta Partners: 5.5% 0 Board & Employees: 2.1% Australia UK North Europe Asia New Unknown America (ex UK) Zealand Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 19 %�������9 ������� ������7�! Executive management Board of directors Len Jubber CEO Patrick O’Connor Chairman Tim Manners Finance Len Jubber CEO & MD Rob Scargill Broken Hill Peter Harley Non exec Wayne Loxton Flinders Phil Lockyer Non exec Bruce Hooper Exploration Karen Field Non exec Peter Eggleston Sustainability Evert van den Brand Non exec Tim Carstens Corporate Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 20 :����������'�6 ���������� LME stock piles (RHS) vs Zinc price (LHS) 1,000,000 5,000 900,000 4,500 800,000 4,000 700,000 3,500 US$ per tonne tonnes 600,000 3,000 500,000 2,500 400,000 2,000 300,000 1,500 200,000 1,000 100,000 500 0 0 Oct-05 Dec-05 Feb-06 Apr-06 Jun-06 Aug-06 Oct-06 Dec-06 Feb-07 Apr-07 Jun-07 Aug-07 Oct-07 Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 21 &����������'�9 �!������������ LME stock piles(RHS) vs Lead price (LHS) 200,000 4,500 4,000 175,000 3,500 150,000 3,000 US$ per tonne 125,000 tonnes 2,500 100,000 2,000 75,000 1,500 50,000 1,000 25,000 500 - - Oct-05 Dec-05 Feb-06 Jun-06 Oct-06 Dec-06 Feb-07 Jun-07 Oct-07 Apr-06 Aug-06 Apr-07 Aug-07 Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 22 %������� ������������������������������3����7�!���������� Lead Copper Zinc 250 10,000 125 4,000 750 5,000 200 100 600 4,000 8,000 3,000 Copper Price (US$/t) LME Stockpiles (kt) LME Stockpiles (kt) Zinc Price (US$/t) Lead Price (US$/t) LME Stockpiles (kt) 150 75 450 3,000 2,000 6,000 100 50 300 2,000 4,000 1,000 25 50 150 1,000 0 0 0 2,000 0 0 Oct 04 Oct 05 Oct 06 Oct 07 Oct 04 Oct 05 Oct 06 Oct 07 O c t 0 4 O c t 0 5 O c t 0 6 O c t 0 7 Broken Hill – 6 th largest Mount Oxide: Broken Hill – 13 th largest zinc mine lead mine : - resource open in all directions - resource upside as Near term exposure - potentially low focus in recent decades through the Flinders development has been on zinc project threshold - leverage to upside Low capex growth Tampang: through put options, path to top 10 zinc down side protection - Proven Cu/Ag producer status porphry system Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 23 Operating Operating Operating Operating Projects Projects Projects Projects Tampang (Cu, Au) Tampang (Cu, Au) Tampang (Cu, Au) Tampang (Cu, Au) Exploration Exploration Exploration Exploration Mineral Resources 2.5 Contained Metal Mt 2.0 Mount Oxide (Cu) Mount Oxide (Cu) Mount Oxide (Cu) Mount Oxide (Cu) Mount Oxide (Cu) Mount Oxide (Cu) 1.5 1.0 0.5 0.0 Dee Range (Cu, Zn) Dee Range (Cu, Zn) Dee Range (Cu, Zn) Dee Range (Cu, Zn) Zinc Lead Copper Ore Reserves Beltana Beltana Beltana Beltana 1.0 (Zn) (Zn) (Zn) (Zn) Contained Metal Mt 0.8 0.6 Broken Hill Broken Hill Broken Hill Broken Hill 0.4 (Zn, Pb, Ag) (Zn, Pb, Ag) 0.2 (Zn, Pb, Ag) (Zn, Pb, Ag) 0.0 Zinc Lead Potosi (Zn, Pb, Ag) Potosi (Zn, Pb, Ag) Potosi (Zn, Pb, Ag) Potosi (Zn, Pb, Ag) North Mine Deeps North Mine Deeps North Mine Deeps North Mine Deeps Note : Cu as at 2007/08 (Zn, Pb, Ag) (Zn, Pb, Ag) (Zn, Pb, Ag) (Zn, Pb, Ag) Zn, Pb as at 2006/07 Flinders (Zn) Flinders (Zn) Flinders (Zn) Flinders (Zn) Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 24 ,���������������7�! FLINDERS (SA) BROKEN HILL (NSW) • Plant and equipment • Stockpile 90 kt zinc at Beltana by Dec 2007 • Potosi exploration decline • Cultivate off take market • Flying Doctor feasibility study ORGANIC • Commence direct ore • North Mine Deeps sales by Dec 2007 & NEW pre feasibility Study • Reliance feasibility study BUSINESS • Near mine exploration GROWTH • Regional exploration • Regional exploration COMMODITY & CURRENCY MOUNT OXIDE (QLD) MARKETS • Triple Cu resources to Growth platform: 300 kt • Lead and currency Strong earnings options Strong balance sheet. • Pre feasibility study in Two year revenue protection March Q 2008 Org structure geared for growth Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 25 �!��������������� ����'���8��� • Fifth anniversary since acquisition • 1 millionth tonne of metal in Dec qtr • Five year mine life maintained • Investing $40 million in new projects & plant / equipment renewal in 07/08 • Investing $12 million in exploration in 07/08 Largest mining lease holder in 127 year Broken Hill history Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 26 ���'���8���������������� ���������������������������������������� Southern Operations Potosi Southern Operations Potosi 1.9 Mt per annum 0.2 – 0.4 Mt per annum 1.9 Mt per annum 0.2 – 0.4 Mt per annum Flying Doctor Flying Doctor North Mine North Mine 0.25 – 0.5 Mt per annum 0.25 – 0.5 Mt per annum 0.1 – 0.2 Mt per annum 0.1 – 0.2 Mt per annum North Mine Deeps North Mine Deeps 0.2 – 0.4 Mt per annum 0.2 – 0.4 Mt per annum Satellite open pitable Satellite open pitable Broken Hill Concentrator deposits–Henry George? deposits–Henry George? 2.8 Mt Capacity North Mine Deeps evaluating Potosi & Flying Doctor North Mine Southern Operations existing ore feed Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 27 ������������;��������� Piesses • A$12M exploration budget 2007/08 Knob − extend existing resources Potosi Flying − identify new satellite ore bodies Doctor North Mine − major new discovery Round Hill City Southern Operations 5 km Mill Stirling Vale Southern Ops 1130 Extensions Smiths Sam Deeds Perilya Broken Hill Mining Lease Henry George Surface projection of ore bodies Existing Operations Exploration targets Monarch Flat Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 28 %������3�*������4����� ����������5���<��9��=�>���������90=����� Flying Doctor Potosi Resource 2.36 Mt @ 11.7% Zn, 4.6% Pb, 54g/t Ag 0.52 Mt @ 5.4% Zn, 7.1% Pb, 72g/t Ag Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 29 ���������������������������?���!��������� Corporate Formal business Broken Hill Flinders Mount Oxide Growth
Slide 30 8�����@����� ������������ ��������A Corporate Formal business Broken Hill Flinders Mount Oxide Growth
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