“Positioning for sustainable long term growth” Len Jubber - Chief Executive Officer 9 June 2006
Important Notice This presentation is not and does not constitute an offer, invitation or recommendation to subscribe for, sell or purchase any security in any jurisdiction. Reliance should not be placed on the information or opinions contained in this presentation. This presentation does not take into consideration the investment objectives, financial situation or particular needs of any particular investor. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, Perilya Limited and its affiliates and related bodies corporate and their respective officers, directors, employees and agents disclaim any liability (including, without limitation, any liability arising from fault or negligence) for any loss arising from any use of this presentation or its contents or otherwise arising in connection with it. Any forecasts and other forward-looking statements set out in this presentation are based on a number of assumptions which are subject to change and in many cases outside the control of Perilya Limited. Any forecasts contained in this presentation may vary from actual financial results and these variations may be material. Accordingly the forecasts should not be relied upon. All figures are expressed in Australian Dollars unless stated. Slide 2
Contents � Corporate � Broken Hill � Projects & Exploration – Base metals – Precious metals � Summary Slide 3
Capital Structure as at 6 June 2006 ASX Code PEM Geographic Analysis of Investors at 31 Mar 2006 191.0 m 50 Shares on Issue 40 8.0 m Unlisted Options Shares (m ) 30 A$2.83 Share Price 20 A$541m Market Capitalisation 10 1.3 m shares 0 Average Daily Turn-over Australia UK Asia New Zealand North America Europe (ex UK) Unknown West Indies Perilya – Share Price Performance 31 Mar 2006 $3.50 8,000,000 7,000,000 $3.00 6,000,000 A$ per Share $2.50 � Over 50% foreign held Volume 5,000,000 $2.00 4,000,000 � Strong recent interest from 3,000,000 $1.50 North America and Asia 2,000,000 $1.00 � Taking a global perspective 1,000,000 $0.50 - on investor relations 5 5 6 6 6 6 6 6 6 6 6 5 6 6 0 0 0 0 0 0 0 0 0 0 0 0 0 0 r r r c c c n n b b r y y n a a p p e e e e e a a a a u M M A A D D M M D J J F F J Slide 4 0 2 6 9 3 9 3 6 1 1 5 9 8 4 1 2 2 2 2 1 2 1 Source: IRESS
Significant Asset Portfolio Base & precious metals BASE METALS GOLD 1 Broken Hill OPERATING (Zn, Pb, Ag) DEVELOPING 2 Daisy Milano 3 Potosi EVALUATING (Zn, Pb, Ag) 4 Flinders (Zn, Mn) 5 Mt Oxide 7 Moyagee RESOURCE DRILLING (Cu) 6 Tampang 6 Tampang (Cu) EXPLORING 8 Dee Range 10 Holleton (Cu, Zn) 9 Woodline Well 11 Honeymoon Well (Ni) 12 Kanowna � Broken Hill metal production: 140kt zinc, 75kt lead and 2Moz silver � Daisy Milano: target ~ 50-60koz gold � Development and exploration projects: – Broken Hill extensions – Flinders – Mt Oxide – Tampang – Yilgarn gold portfolio Slide 5
Broken Hill cash flow profile From acquisition to May 2006 120 100 80 A$ millions 60 40 20 - (20) (40) Jul 02 Nov 02 Jul 03 Nov 03 Jul 04 Nov 04 Jul 05 Nov 05 Mar 02 May 02 Sep 02 Jan 03 Mar 03 May 03 Sep 03 Jan 04 Mar 04 May 04 Sep 04 Jan 05 Mar 05 May 05 Sep 05 Jan 06 Mar 06 May 06 Cumulative Net Cashflow Cumulative Production Linked Payment Cumulative Price Linked Payment � Generated ~A$100m cash from operations since acquisition. � $46.5m in price & production linked payments made since acquisition – final $8.5m due in June. Slide 6 � Generating positive return on A$90m acquisition investment.
Broken Hill Significant operational improvements Quarterly Metal Production & Cash Operating Margin 40 1.20 Contained Metal - kt 35 1.00 30 0.80 25 US$/lb 0.60 20 15 0.40 10 0.20 5 0 - Q3 Q4 Q1 Q2 Q3 04-05 05-06 Zinc Lead Net Cash Cost US$/lb Revenue US$/lb Slide 7
Broken Hill Significant operational improvements Total Ore & Metal Production 600 60 550 55 Contained Metal in 500 50 Concentrate (kt) Ore treated (kt) 450 45 400 40 350 35 300 30 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 03-04 04-05 05-06 Tonnes treated Total Contained Metal In Concentrate Slide 8
Broken Hill Significant operational improvements Ore Grades 9 8 7 Grade (%) 6 5 4 3 2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 03-04 04-05 05-06 Zn Grade Lead Grade Slide 9
Broken Hill Significant operational improvements Metal Recovery 96 94 92 Recovery (%) 90 88 86 84 82 80 78 76 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 03-04 04-05 05-06 Zn Recovery Lead Recovery Slide 10
Broken Hill Exponential margin growth 1.10 1.00 0.90 US$ per lb of Zinc 0.80 0.55/lb 0.70 Zinc 0.60 Price 0.19/lb 0.50 0.12/l Zinc 0.07/lb Zinc Price 0.40 Cash Zinc Cash Cash Price Cash Costs Price Costs Costs 0.30 Costs 0.20 Dec 2004 Half Jun 2005 Half Dec 2005 Half Mar 2006 Quarter � Direct Costs Margin growth driven by - � Productivity � Lead Price � Zinc Price � Price linked charges Slide 11
Multiple value drivers Taking a long term view � Production: Target 2.1 - 2.3 Mtpa ─ Increase capacity of existing mining system ─ Identify additional sources � Direct costs: Target 2 - 4 ¢/lb sustainable reduction in direct costs p/a over next 2 years – US$0.01/lb equates to A$4 million per annum * � Metal prices: Hedge where appropriate – US$0.10/lb Zn equates to A$24 million per annum * – US$0.10/lb Pb equates to A$15 million per annum * � Longevity: Target 10 years + ─ Currently 5 years on reserves and 7 on resources ─ Replaced 75% of production over past 4 years * Based upon annualised March quarterly production statistics Slide 12
Broken Hill mining leases Brownfields exploration & project evaluation Perilya Lease Surface projection of ore bodies Flying Doctor 5 km Open pit potential Potosi Development decision North Mine by mid year Compiling geological interpretation of area City between Potosi & North Mine Southern Operations Scoping Study on North Mine Deeps Drilling above existing mining area Slide 13
Potosi Development decision by mid year Flying Doctor North Slide 14
Potosi Likely development path � Exploration decline � S elf funded through early access to Potosi North orebody � Resource drilling from decline � Commence 2 nd half 2006 Slide 15
North Mine Grade is king – well almost Production Areas Decline currently below 9 Level 2 Lens mined 0.8mt / 21.0 % Zn + Pb Current decline design Inferred Resource to 16 Level 3.4mt / 25.6 % Zn + Pb 3 Lens mined Inferred Resource Water Table – 960m (26 Level) Slide 16
North Mine Deeps Scoping study well advanced � Access 3.4mt @ 25.6% Zn & Pb via number 3 shaft. � Dewatering critical path 9-15 months. � US$1.6b in-situ value at US$3,000 Zn / US$1,100 Pb. � What has changed since closure in 1993? ─ Lower operating cost. ─ Higher mining rates with open stoping. ─ Higher metal price. ─ Industry has developed better understanding of managing ground conditions in the past 15 years. � Study outcome to be released in current quarter. Slide 17
Broken Hill Project Development Indicative schedule 2006 2007 2008 2009 2010 Potosi North Deeps Flying Doctor Pinnacles, White Leads, Little Broken Hill Exploration Project Construction Production Evaluation Slide 18
Broken Hill Mine life Targeting ten years plus Production Annual (Mt) � Current plant capacity ~ 2.6 – 2.8mt per annum ?? Greenfields Exploration Brownfields Exploration North Mine Potosi Improvements 2.1 Current Reserves 5 7 8 ? ?? ??? Longevity Slide 19
Flinders Direct ore shipping or hydro metallurgical? Current status � Resource of 941kt @ 30% zinc. � Completed Padaeng processing trial on direct shipping ore. Alternatives � Direct ore shipping. � Zinc hydro-met. � Zn and Mn hydro-met. Next Steps to end of June � Target near surface zinc - rich extensions. � Metallurgical review and test- work. � Update resource estimate & Slide 20 economic evaluation.
Mt Oxide Drilling to resume in September quarter � 80,000 tonnes Cu metal (2.8mt @ 2.9%). � Located 25km from Mt Gordon. � Geological re-interpretation completed. � Resource update & exploration plan - June quarter. Resource extension drilling - September quarter. � Slide 21
Tampang Known large gold-copper porphyry system Bongkud Bongkud Hill Hill TRD030 supergene H i g h G r a T d a e r g e t > 0.6% eCu 200m > 1% eCu � Originally delineated on geochemistry & drilling restricted to geochemistry peaks. � Subsequent geophysics identified potential western extension. � TRD030 too shallow to test hypothesis. Slide 22
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