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Indophil Resources – An Emerging Copper Producer
AusIMM(Melbourne Branch)2 October 2007
Tony Robbins(representing Richard Laufmann)
www.indophil.com
This presentation contains forward-looking statements that involve subjective judgment and analysis and accordingly, are subject to significant uncertainties and risks, many of which are outside the control of, and are unknown to, Indophil Resources NL (“Indophil”). In such circumstances, the forward-looking statements can be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “seek”, “estimate”, “believe”, “continue” or other similar words.No representation, warranty or assurance is given or made in relation to any forward-looking statement by Indophil or its representatives. In addition, no representation, warranty or assurance is given in relation to any underlying assumption or that any forward-looking statements will be achieved. Actual future events may vary materially from the forward-looking statements and the assumptions on which the forward-looking statements are based. Accordingly, readers are cautioned not to place undue reliance on such forward-looking statements as a result of the uncertainties.In particular, Indophil wishes to caution readers that these forward-looking statements are based on economic predictions and assumptions of reserves, mining method, production rates, metal prices and costs (both capital and operating) developed by Indophil Management in conjunction with consultants.This presentation and the forward-looking statements made in this presentation speak only as of the date of the presentation. Accordingly, subject to any continuing obligations under the Corporations Act and the Australian Stock Exchange Listing Rules, Indophil disclaims any obligation or undertaking to publicly update or revise any of the forward-looking statements in this presentation, whether as a result of new information, or any change in events, conditions or circumstances on which any such statement is based.
© Indophil Resources NL 2007
Disclaimer
Indophil – Let’s Set The Scene (with a ‘major project’)
• World class Tampakan Copper-Gold Project in the Philippines– 1.97Bt @ 0.72% Cu equivalent - largest undeveloped copper-gold resource in SE Asia– Xstrata 62.5%, Indophil 34% with agreement to build to 37.5%– 11.6Mt copper & 14.6Moz gold– Production of 210Ktpa Cu, 218Kozpa Au (16th in world) - high grade start-up– Cash costs less than US$0.66c/lb – low 2nd quartile
• Strong balance sheet– Net cash > A$100 million
• Clear Board focus on growth → short term objective to become producer– Respected mid-cap miner within short timeframe
Tampakan – A World Class Development
Pre-feasibility study completed Sept 06 with definitive feasibility study due for completion by end of 2008Xstrata management from 1 April 07
Status:
540Ktpa @ 35-40% Cu, 10g/t Au, <0.4% AsConcentrate:
88% Cu, 70% AuAverage Recovery:
210Ktpa Cu, 218Koz AuMetal in Concentrate:
+25 years Mine Life:
1 ore : 0.83 wasteStripping Ratio:
30Mtpa ore with capacity to expandProduction:
657Mt @ 0.78% Cu, 0.32g/t Au [0.97% Cu eq] at 0.3% Cu cut-offInitial Planning Inventory:
1.97Bt @ 0.59% Cu, 0.23g/t Au [0.72% Cu eq] at 0.3% Cu cut-off Mineral Resource (JORC):
Tampakan – A Giant Deposit
0
5
10
15
20
25
30
35
40
45
GRASBERG-ERTSBERGOYU TOLGOI C
AMP
SAR CHESHMEH CAMP
ERDENETTAMPAKAN
BOUGAINVILLEBATU HIJA
UDEXING CAMP
OK TEDIYULONG CAMPFRIEDA RIVER
KINGKING
NAMOSIFAR SOUTH EAST
SANTO TOMASCARMEN - ATLAS
Pre-
Min
ed R
esou
rce
Cu-
equi
v M
t
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
2.00
%C
u -G
rade
equ
iv
Large Asian Copper Deposits – Developed and Undeveloped82Mt
Tampakan – Production: Global Ranking
0.0
200.0
400.0
600.0
800.0
1000.0
1200.0
Escondida s
ulfides
Grasberg
Chuquicamata
sulfid
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El Ten
iente sulfid
es
Collahuas
i sulfid
esAntam
ina
Morenci
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Los Pelambres
Batu H
ijau
Radomiro
Tomic SXEWAndina
Bingham C
anyon
Olympic
Dam
Los Bro
nces s
ulfides
El Abra
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anOk T
ediAlumbrer
aCan
delaria
Mt Isa C
opper
Highland Valle
yCuajo
neToquep
ala
Escondida S
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2006
Cop
per P
rodu
ctio
n (k
tpa)
16th largest producer
© www.minecost.com
Tampakan – Globally Cost Competitive
Copper price, production rateKey Sensitivities:
US$1.4 billionTotal Direct Project Capital:
Managed in-house with high quality consultants used –AMEC, Golder Associates & GHD
Pre-feasibility Study Basis:
Industry standard process involving: 1. Single stage crushing2. Closed circuit grinding SAG / ball mill circuit3. Rougher flotation, re-grinding, cleaner flotation4. Concentrate thickening and de-watering
Process Outline:<US$7.00 per tonne of ore milledLong Term Operating Cost:<US$0.66/lb Cu – does not include potential Mo creditCash Operating Cost:
US$0.5 billion – off balance sheet as provided by third partiesAssociated Infrastructure Costs:
0.0
46.0
92.0
138.0
184.0
Chuquicamata
sulfides
Alumbrera
La Cari
dad SXEW
Cuajone
Radomiro Tomic SXEW
Batu Hijau
Escondida S
XEW
Zaldivar
SXEW
Tintaya SXEW
Tampak
an
Voiseys B
ay
Cerro Colorado
Collahuas
i sulfid
es
Phoenix
Neves C
orvo
Ernest H
enry
Ok Ted
i
Bwana/L
onshi
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Tintaya su
lfides
Mt Isa C
opper
Brunswick
Robinson
Tritton
Huckleberr
y
Nchanga s
ulfides
Gibraltar
Mt Garn
et
KonkolaCadia
Peak
Paid
Cop
per A
fter C
redi
ts (U
S$/lb
)Tampakan – Cash Costs Global Ranking
Low 2nd Quartile Cash Costs
© www.minecost.com
Tampakan – Strong Cash Flow Leverage to Copper Price
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75 $3.00
Cu US$/lb
US$
Mill
ion
• Copper prices as shown, gold US$500/oz• Operating cash flow after infrastructure, before project financing & tax payments • Each US$0.25/lb increase in copper price generates >US$100m in cash flow
Tampakan – Location
Sarangani Bay
LakeBuluan
20KM
Davao Gulf
Sarangani
Davao Del Sur
SouthCotabato
Sultan Kudarat
Manila
MINDANAO
TampakanCopper - Gold
Project
Maguindanao
Korondal
Columbio Matanao
Kiblawan
Tampakan
General Santos City
TampakanCopper - Gold
Project
Province BdysMain roads
Columbio FTAA
Tampakan – Resource Estimate
Measured, Indicated & Inferred
14.611.60.72760.230.591.970.3
15.712.50.66720.210.542.320.2
Au (Moz)Cu (Mt)Cu Equiv %
Mo (ppm)Au g/tCu %Billion Tonnes
Cu Cutoff (%)
Source: Hellman & Schofield• Resource estimation within a conceptual open pit at prices of US$450/oz Au and US$1.50/lb Cu
assumed for pit base definition.• Mt = million metric tonnes, Cu Equiv % = Cu + 0.58 x Au value, Moz = million ounces.• Molybdenum has potential to add significant value.
Tampakan – Exploration Potential
Exploration Potential 2 - 72 – 5 0.15 – 0.20 0.3 – 0.50.4 – 1.4
Au (Moz)Cu (Mt)Au (g/t)Cu (%)Billion Tonnes
Notes:
• Exploration potential within conceptual open pit at 0.2–0.4% Cu cut-off grade.
• Exploration Potential is mineralisation contained within a conceptual open pit, but not classified within JORC 2004 Guidelines. See www.indophil.com for explanation of basis for Exploration Potential.
Tampakan – The Resource
500M
Line 715950N
Line 714830N
715000mN
505000mE
High grade zone approx. >=100 metres& >=1% CopperMineralised zone @ 0.5% Cu cut-off
Mineralised zone @ 0.3% Cu cut-off
Structures
NOTE: Resource as at 31/07/2007
Drillhole location
Drillhole with intersection >=100 metres& >=1% Cu
Columbio FTAA
Tampakan – The Resource
?
?
D91
D5
D85
D21D105
D100
D92
36/1.19
230/1.04
323/1.06
42/1.18
D22 D27D37
D20
D54
D23
D50D172
Drill Cross - Section 715950mNW E
RL (m)
44/0.92
156/1.4
142/1.24
38/1.24
100/1.39
506100mE505400mE
700
900
1100
1300
200M
Metres / Cu (%) Higher GradeIntersection
Limit of 1.0% Copper cut-off
Limit of 0.5% Copper cut-off
Limit of 0.3% Copper cut-off
Upper limit of low As (150ppm)
Tampakan – The Resource
D167
D156
D125
D124
D126
D140
Logdeck AndesiteD151
vvv
vvv
vv
vvv
vv
v
vvv
vvv
v
vvv
vv
v
vv
vv
vv
v
vv
vvvv
vv v
vvvv
Drill Cross - Section 714830mNW ERL (m)
505800mE505200mE
600
800
1000
1200
200M
Metres / Cu (%) Higher GradeIntersection
Limit of 1.0% Copper cut-off
Limit of 0.5% Copper cut-off
Limit of 0.3% Copper cut-off
Upper limit of low As (150ppm)
?
??
Tampakan – The Community
• Excellent relations developed through extensive community programs
– Community development budget >A$0.5 million pa under Principal Agreements
– Equal funds allocated to health & education– Education: students & adult literacy scholarships – Health partnership programs– Competence centres – skills training– Governance programs– Local infrastructure
• Support/cooperation agreements in place with local government units and indigenous peoples groups
• Project currently provides approx. 500 full-time jobs
Tampakan – The Environment
• President’s Environment Award 2006
• Baseline environmental studies well advanced
• Environmental Impact Assessment studies– EIS for FTAA completed and submitted– Technical scoping with government & public consultation
• Environmental guidelines and programs developed– Environmental code of conduct and awareness program– Community-based environmental monitoring programs– Reforestation and planting forest buffer zones– Comprehensive land use plans– B’laan ‘upland research’ centre - livelihood capability
programs
Tampakan – Regional Project Upside
Tampakan Cu-Au Deposit
Silway
Bong Dalol
Bukay El
Salnaong
Camp 5 East
125°E
2.5KM
6°30’N
Soil Geochemistry Prospect
Columbio FTAA
And to the Topic!
Stated simply . . .
What MAKES a major project can also KILL it
• The deposit• People• Government• Partners• Social license• Location• Timing/luck
People
• Management– Send the ‘A’ team– Their experience, attitude– Internationalisation V colonialism– Process & system
• Access to skilled labour
Government
• Red tape (bureaucracy)• The approvals process• Fiscal regime• Security of tenure• Shifting goal posts• Political stability (sovereign risk)
Partners
• At the top end . . .– Size matters – complete with solid international reputation– Banking requirements
• At a local level . . .– Knowledge– Ability to deliver– Inclusive, patient
Social License
• Community support• ‘Informed consent’• ‘What’s in it for me?’
– Financial benefits– Jobs and training– Community and environmental programs– An opportunity to pursue community and self development
• Law and lore
Location
• Existing infrastructure– Power– Water– Supply routes
• Access to services, supplies and skilled people• Proximity to markets• Law and order, regional stability
Timing/luck
• Commodity prices • Market conditions
– Economic well-being– Access to capital
• Technological advances
Indophil – History of Achievement
Infill and delineation drilling program commences at TampakanMay 2003
Tampakan project management passed to Xstrata CopperApril 2007
Tampakan PFS delivered on time and on budget• Confirming the economic viability of a world class project
Sept 2006
Tampakan resource estimate upgraded to 1.97Bt @ 0.72% Cu equivApril 2006
A$27m pre-feasibility study (PFS) commences at TampakanApril 2005
Indophil lists on the ASXMay 2002
Columbio FTAA (Tampakan project) transferred to IndophilDec 2001
Incorporation of Indophil Resources NLDec 1996
Indophil – Entering An Exciting New Growth Era
• Business development objective – Indophil as a producer • Cash reserves of A$100+ million
– Strong Board support
• Opportunity driven with focus on Asia - Pacific – Advanced projects
• Copper and gold focus with opportunistic nickel and zinc plays
Indophil – The Report Card
• World class Tampakan copper-gold project– Giant copper-gold resource with 1.97Bt @ 0.72% Cu equiv at 0.3% cut-off grade– Pre-feasibility confirmed potential to be top 20 global producer at low 2nd quartile
cash costs– Entered definitive feasibility stage under Xstrata management
• Strong management – progressed world class asset in challenging environment– London Mining Journal Perseverance Award 2006– Various industry and government awards in the Philippines
• Cashed up and entering exciting growth era • Smooth management transition – TRobbins to RLaufmann
Indophil - Corporate Information
• ASX listed: code IRN• Market capitalisation: approx A$376 million (A$1.00 share price)• Issued shares: 375.6 million• Directors:
Chairman - Brian PhillipsCEO/MD - Richard Laufmann Non Executive Director - John O’ReillyNon Executive Director - Richard PottsNon Executive Director - Tony RobbinsNon Executive Director - Kyle Wightman
• Contacts:Richard Laufmann, CEO and MD – richard.laufmann@indophil.comScott Caithness, GM Exploration & Business Development – scott.caithness@indophil.comGavan Collery, Manager Corporate Affairs – gavan.collery@indophil.com
Indophil Share Price History
$0.50
$0.60
$0.70
$0.80
$0.90
$1.00
$1.10
15-Sep-06
15-Oct-06
15-Nov-06
15-Dec-06
15-Jan-07
15-Feb-07
15-Mar-07
15-Apr-07
15-May-07
15-Jun-07
15-Jul-07
15-Aug-07
15-Sep-07
$ p
er
sh
are
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
Vo
lum
e(s
ha
res p
er
da
y)
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