THIRD QUARTER REPORT 14 OCTOBER 2014 DISCLAIMER This presentation - PowerPoint PPT Presentation

THIRD QUARTER REPORT 14 OCTOBER 2014

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 their 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 therefrom, or otherwise arising in connection with it. Some statements in this presentation are forward-looking statements within the meaning of the US securities laws. Such statements include, but are not limited to, statements with regard to 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 Minerals’ 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 and 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 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. All figures are expressed in Australian dollars unless stated otherwise. This presentation should be read in conjunction with the Quarterly Report released today. OZ Minerals | 2

THREE KEY MILESTONES ACHIEVED IN THE QUARTER 1. Prominent Hill production successfully returned to the 100,000 tonne per year copper production ’run-rate’ Open pit mining rate ahead of revised schedule. • Record plant quarterly throughput. • Firmly on track to achieve production guidance. Gold production expected to be at • upper end of guidance. Low C1 costs of US60.5 cents/lb. Costs now expected to be at lower end of guidance. • 2. First production achieved from Malu Underground on schedule First ore from stoping achieved in early October 2014. • Malu Underground independent ventilation system installed and operating. • Underground operations being integrated. • 3. Carrapateena Pre-Feasibility Study completed, successfully demonstrating viability Technically and financially viable with low operating costs and long life. • Well located in a low risk jurisdiction with good access to infrastructure. • Opportunities such as synergies with Prominent Hill and automation can provide • further improved results. Due diligence by interested parties underway. • OZ Minerals | 3

SAFETY OZ MINERALS LOST TIME AND TOTAL RECORDABLE INJURY FREQUENCY RATE 12 MONTH MOVING AVERAGE* 10 8 8 LTI Frequency Rate TRI Frequency Rate 6 4 4 2 0 0 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 *per million hours worked OZ Minerals TRIFR OZ Minerals LTIFR Slight increase in injury rates – focus firmly on learning from high potential incidents. • OZ Minerals | 4

PROMINENT HILL PRODUCTION SUCCESSFULLY RETURNED TO THE 100,000 TONNE PER YEAR COPPER PRODUCTION ’RUN-RATE’

PROMINENT HILL OPEN PIT MINING AHEAD OF SCHEDULE MALU OPEN PIT SEPTEMBER 2014. Larger working areas and better fleet management control has driven greater material movement. One bench ahead in Stage 3, one bench ahead in Stage 4, relative to July 2014 advice. OZ Minerals | 6

PROMINENT HILL Q3 PRODUCTION STATISTICS – STRONG PERFORMANCE CONTINUES PROMINENT HILL PRODUCTION STATISTICS JUN 14 QTR SEP 14 QTR Strong quarterly performance Mined Malu copper-gold ore (tonnes) 2,398,069 2,222,443 with fewer production Malu gold-only ore (tonnes) 1,731,447 1,821,155 excavators in the open pit. Waste (tonnes) 17,901,470 16,400,448 Ankata ore (tonnes) 307,562 322,124 Mined Grade Malu copper-gold ore Cu grade (%) 0.99 1.08 Increase in Malu open pit Malu copper-gold ore Au grade (g/t) 0.54 0.44 grade, as forecast. Malu gold-only ore Cu grade (%) 0.13 0.11 Malu gold-only ore Au grade (g/t) 1.01 0.78 Ankata ore Cu grade (%) 1.88 2.24 Highest ever quarterly Ankata ore Au grade (g/t) 0.46 0.45 throughput. Ore Milled (tonnes) (tonnes) 2,234,649 2,755,848 Milled Grade Copper (%) Copper (%) 1.10 1.06 Gold (g/t) Gold (g/t) 0.56 0.68 Good recoveries maintained. Recovery Copper (%) Copper (%) 90.5 90.0 Gold (%) Gold (%) 76.7 78.4 Copper Cons. (tonnes) (tonnes) Copper production above 41,790 49,375 Produced 100kt per annum run rate due Contained Metal Copper (tonnes) Copper to strong ore production and 22,181 26,249 In Cons. (tonnes) increased milled tonnes. Gold (oz) Gold (oz) 30,736 47,376 Total Cons. Sold* (DM tonnes) (DM tonnes) 43,737 38,883 *excludes sales of third party concentrates OZ Minerals | 7

PROMINENT HILL CONTINUING IMPROVEMENT IN OPEN PIT ORE & WASTE MINING BY QUARTER MINING RATES (BCM/hr) DECLINING WASTE MINING REQUIREMENTS CONTINUING IMPROVEMENT Mt Waste tonnes BCM/hr Ore tonnes 25 1,250 20 1,200 15 1,150 10 1,100 5 1,050 - 1,000 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 2013 2014 3-Month Average - Rolling Planned reduction in waste mining volumes. • As previously announced, ore production higher as Stage 3 accesses higher volumes of higher quality ore. • Optimising work areas, improved scheduling has allowed excavator mining rates to improve. • September quarter strip ratio 4:1 compared to September quarter 2013 strip ratio of 12:1. • OZ Minerals | 8

PROMINENT HILL RECORD THROUGHPUT, INCREASED PRODUCTION ORE MILLED PER QUARTER COPPER PRODUCTION PER QUARTER RECORD THROUGHPUT ABOVE 100,000tpa RUN-RATE 25,000 tonnes 2.5Mt Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2013 2014 2013 2014 Highest ever quarterly throughput by the processing plant. • − Engineering improvements, reduction in planned shutdowns proving effective. Copper production returned to 100,000 tonne per annum run-rate. • − Higher grade feed available from mining and higher throughput. − Building ore stockpile has allowed flexibility in processing. OZ Minerals | 9

PROMINENT HILL LOW C1 COSTS DUE TO HIGHER GOLD PRODUCTION AND LOWER EXPENDITURE UNIT COST C1 – Q3 2014 VS Q2 2014 (US c/lb) 120 USD gold 100 average A$/US$ rate prices in was flat. line with 80 Q2. Reduction in processing Increased 54% increase 60 costs due to ore milled in payable revised later reduced the Strong pit gold shutdown inventory performance production, scheduling credit, offset creates higher due to 40 and reduction by lower ROM stocks, higher in Ankata costs open pit allowing grades and due to higher movement. higher grade higher milled levels of tonnes to be 20 tonnes. development milled. work. 0 109.7 (1.1) (38.3) 29.7 (21.9) (0.7) (17.0) 60.5 Q2 Actual 2014 Gold price Payable gold Volume Costs FX Payable copper Q3 Actual 2014 volume (Cost Driver) volume OZ Minerals | 10

COPPER MARKET A$ COPPER PRICE STRENGTH A$ COPPER PRICE RESILIENCE A$ copper price remaining • A$ healthy. 3.7 All 2014 concentrate • production, including 3.5 additional production advised at the end of Q2, 3.3 now allocated under sales contracts. 3.1 Concentrates inventory at • year end expected to be 2.9 lower than 1 January. 2.7 30/07 30/08 30/09 US$/lb A$/lb Data source: Bloomberg OZ Minerals | 11