OZ MINERALS THIRD QUARTER REPORT 19 OCTOBER 2010 WWW.OZMINERALS.COM OZ MINERALS • NOVEMBER 2009 • PAGE 1
DISCLAIMER This presentation has been prepared by OZ Minerals Limited (“OZ Minerals”) and consists of written materials/slides for a presentation concerning OZ Minerals. By reviewing/attending this presentation, you agree to be bound by the following conditions. No representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information, contained in the presentation or of the views, opinions and conclusions contained in this material. To the maximum extent permitted by law, OZ Minerals and its related bodies corporate and affiliates, and its respective directors, officers, employees, agents and advisers disclaim any liability (including, without limitation any liability arising from fault or negligence) for any loss or damage arising from any use of this material or its contents, including any error or omission there from, or otherwise arising in connection with it. Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as “will”, “expect”, “anticipate”, “believe” and “envisage”. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside OZ Mineral’s control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation. Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements and intentions which speak only as at the date of the presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, OZ Minerals does not undertake any obligation to publicly release any updates or revisions to any forward looking statements contained in this presentation, whether as a result of any change in OZ Minerals expectations in relation to them, or any change in events, conditions or circumstances on which any such statement is based. Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified. OZ MINERALS • PAGE 2
HIGHLIGHTS Excellent quarter at Prominent Hill. − Copper production on-track to meet guidance, gold expected to be at − least 185,000oz. Very pleasing plant performance. − Costs remains very competitive despite A$ strength. − Underground mine construction underway. − Encouraging intercepts in the Kalaya zone. − Regional exploration focus, $14m in H2. − 10 drill rigs on site (near mine, regional) by year end. − OZ MINERALS • PAGE 3
SAFETY OZ Minerals Lost Time and Total Recordable Injury Frequency Rate 12 Month Moving Average * 20 60% of total • recordable injuries 18 are restricted work 16 injuries resulting 14 from muscular Frequency Rate 12 strains. 10 Investigation • 8 procedure for all LTI’s to include face- 6 to-face review by 4 relevant senior 2 management of injured person with 0 Oct-09 Dec-09 Feb-10 Apr-10 Jun-10 Aug-10 Executive Committee. OZ Minerals TRIFR OZ Minerals LTIFR * Injuries per million man hours OZ MINERALS • PAGE 4
PROMINENT HILL PROMINENT HILL PRODUCTION STATISTICS JUN QTR '10 SEP QTR '10 SEP YTD '10 MINED ORE (TONNES) 2,566,096 3,318,790 7,449,909 WASTE (TONNES) 13,125,011 13,513,182 39,072,282 MINED GRADE COPPER (%) 0.96% 0.71% 0.88% GOLD (G/T) 0.77 0.76 0.85 SILVER (G/T) 1.87 2.08 2.32 ORE MILLED (TONNES) 2,359,593 2,427,880 6,995,665 MILLED GRADE COPPER (%) 1.35% 1.24% 1.40% GOLD (G/T) 0.81 0.84 0.81 SILVER (G/T) 2.69 2.21 3.33 RECOVERY COPPER (%) 88.5% 89.2% 88.8% GOLD (%) 80.3% 78.3% 77.8% SILVER (%) 78.3% 78.3% 66.4% CONTAINED METAL IN CONCENTRATES COPPER (TONNES) 28,236 26,841 86,986 GOLD (OZ) 49,249 51,451 142,272 SILVER (OZ) 159,750 135,304 497,072 TOTAL CONCENTRATE SOLD (DM TONNES) 83,811 46,593 171,129 C1 CASH COSTS US CENTS PER LB 39.8 43.0 47.2 • Higher ore mining. • Recovery continues to be pleasing. • Fourth mining fleet commenced. • Gold production likely to be 10% above previous guidance i.e. >185,000oz. • Plant improvements and ‘softer’ gold only ore have led to higher throughput. • Costs remain competitive despite higher $A. • Record continuous run-time. • Underground underway. OZ MINERALS • PAGE 5
PROMINENT HILL UNDERGROUND: ANKATA MINE, UNDERWAY Ventilation shaft construction. • Cutback to access portal underway. • Byrnecut Mining to commence • operations in November. Underground exploration mid 2011. • Vent Shaft Construction Portal Establishment Development Start First Ore First Stope Full Production Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2010 2010 2011 2011 2011 2011 2012 2012 2012 2012 OZ MINERALS • PAGE 6
MARKETS Gold price Copper price US$/oz US$/t 1,400 8,500 1,300 7,500 6,500 1,200 5,500 1,100 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Source: Bloomberg Source: Bloomberg Share price Medium-term-forecasts remain buoyant A$ Copper price forecast - broker consensus $1.75 USc/lb 370 $1.50 355 352 350 350 341 $1.25 340 330 338 330 330 324 $1.00 318 310 310 $0.75 Jan Apr June Oct Jan-10 Mar-10 May-10 Jul-10 Sep-10 290 2010 2011 2012 Source: Bloomberg OZ MINERALS • PAGE 7
SOUTH AUSTRALIAN COPPER Interpreted subsurface geology of • The Gawler Craton contains one the Gawler Craton, South Australia. of world’s largest orebodies plus other significant deposits. Copper deposits include Olympic Dam, Prominent Hill, Carrapateena, Hillside. PROMINENT HILL • Historical exploration expenditure low compared to other Australian OLYMPIC DAM terrains of Late Archean / CARRAPTEENA Paleoproterozoic age e.g. Yilgarn Craton. • Many copper occurrences. OZ MINERALS • PAGE 8
SOUTH AUSTRALIAN COPPER • The Gawler Craton contains one of world’s largest orebodies plus other significant deposits. Copper deposits include Olympic Dam, Prominent Hill, Carrapateena, Hillside. • Historical exploration expenditure low compared to other Australian terrains of Late Archean / Paleoproterozoic age e.g. Yilgarn Craton. • Many copper occurrences. Gawler Craton, South Australia. OZ MINERALS • PAGE 9
REGIONAL EXPLORATION 2010-2011 • Approximately 7,000km 2 EL3729 20km tenement area – 4,000km 2 OZ Minerals, 3,000km 2 IMX JV. EL3730 • Drilling of a number of prospects ongoing. Multiple new prospects Coober Pedy Airborne Gravity Survey EL4132 remain untested. EL4429 • Program of detailed geophysics EL3730 being gathered for prospective areas. EL4025 EL3830 EL3445 EL4429 • Substantial exploration program - 5 drill rigs for regional exploration Current and Future IMX Tenements OZ Minerals Drill by year end. EL4429 Prospects EL3518 EL4446 Proposed Airborne � Magnetic Surveys � EL4283 IP Surveys EL4390 EL4390 in Progress/Planned OZ Minerals tenements EL3795 EL3387 Gravity OZ MINERALS • PAGE 10
REGIONAL EXPLORATION – 2009 – 2010 - 2011 Magnetics Proposed drilling 2010-2011 - Regional Proposed drilling area 2010-2011 – Near-Mine Pluto – drilled prospect EL4429 Peculiar Selected drilling results Knob Nth Kennedy * Drilled Q3 3.1m @ 1.45% Cu, 0.52% Ni Europa Calisto 15m @ 0.77% Cu 1.02g/t Pt, 0.66 Pd 106m @ 0.13% Cu EL4446 Zeus 182.2m @ 0.25% Cu (from 261m) Taurus 26m @ 0.49% Cu (from 134.5m) 287m @ 0.23% Cu 15m @ 0.91% Cu (from 146.9m)* Bluebird 44m @ 0.26% Cu (from 245m)* Manxman Halifax Hill 25m @ 0.19% Cu (from 630m)* Perseus Scyla Umbriel Cressida 10m @ 0.57% Cu Larissa � � Hathorn Proteus 97m @ 0.19% Cu (from 373m)* EL4283 Neptune Triton 2m @ 0.5% Cu Nichol Well IP surveys – in progress/planned 26.7m @ 0.4% Cu (from 562m) Pluto Mt Hawker PH South 115.5m @ 0.16% Cu (from 149.4m) 10km EL4390 OZ MINERALS • PAGE 11
PROMINENT HILL – MINERALISED ZONES PAPA ZONE Ankata underground access MUNDA ZONE MALU DEPOSIT ANKATA DEPOSIT KALAYA ZONE OZ MINERALS • PAGE 12
PROMINENT HILL – RECENT NEAR MINE EXPLORATION PAPA ZONE Ankata underground access MUNDA ZONE MALU DEPOSIT ANKATA DEPOSIT KALAYA ZONE OZ MINERALS • PAGE 13
OZ MINERALS - REGIONAL EXPLORATION SAN EDUARDO CAMBODIA MEXICO COBAR PROMINENT HILL AUSTRALIA PICHASCA CHILE Operation Headquarters Exploration OZ MINERALS • PAGE 14
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