OZ MINERALS BMO CAPITAL MARKETS 2013 GLOBAL METALS & … · 2015-09-15 · 1.03 g/t Au , from 1,398m 91m @ 1.01% Cu, 0.55 g/t Au , from 1737m . Continuous mineralisation extending

TERRY BURGESS - Managing Director & CEO 24-27 FEBRUARY 2013 WWW.OZMINERALS.COM

OZ MINERALS BMO CAPITAL MARKETS 2013 GLOBAL METALS & MINING CONFERENCE

OZ MINERALS • PAGE 2

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 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, 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 Mineral’s 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 financial results are reported under International Financial Reporting Standards (IFRS). This presentation also includes certain non-IFRS measures including Underlying EBITDA, Underlying EBIT and Underlying NPAT. These measures are presented to enable understanding of the underlying performance of the Company without the impact of non-trading items such as impairment, impairment reversal and litigation settlement expense. Non-IFRS measures have not been subject to audit or review. All figures are expressed in Australian dollars unless stated otherwise.


OZ MINERALS

WHY INVEST? • Highly regarded, strongly performing Australian copper asset in Prominent Hill.

• Strong cash generation with significant cash balance, no debt: actively looking for value adding growth options.

• Developing project pipeline:

- Development of current and future underground mines at Prominent Hill, and

- Carrapateena copper project.

• Dividend Policy: 30–60% of annual normal operating profits (2012:60%).

• Proven track record of capital management – Capital Return, Share Buy-back and Dividends.

• Experienced operating, project and management team.

• Leverage to copper plus gold credits.

Our strategy


STRATEGY REAFFIRMATION Strategy has five key elements with base of zero harm:

1. Focus on copper.

2. Maximise potential of assets.

3. Build a project pipeline.

4. Invest in exploration.

5. Disciplined capital management.

Progress since 2009

• Prominent Hill consistent performance with developing underground future.

• Extensive exploration at Prominent Hill – Ankata in production, Malu UG being developed.

• Carrapateena acquisition, exploration & evaluation directed at development of long-term copper operation.

• Capital management: capital return $389m, share buy-back $200m, with dividends $506m*.

• Highly disciplined business development activity – shareholder value protected.

OBJECTIVE SHAREHOLDER RETURNS

* Includes final dividend A$0.20 per share announced on 13 February 2013


OZ MINERALS - SNAPSHOT • Share price - $7.01.

• Market capitalisation ~ $2.1 billion.

• Issued share capital - 303.47 million.

• Shareholders: − ~72,700 shareholders − Institutional 68% − Retail 32%

− Australian 60% − Offshore 40%

• Equity investments − ~39% of Toro Energy. − ~20% Sandfire Resources. − ~8% IMX Resources.

Prominent Hill copper operation • To average 100,000t per annum of copper over LOM

plus gold credits. • In production since 2009.

Growth strategy • Exploration – a focused program to develop the underground

resources at Prominent Hill and to target regional opportunities at Carrapateena.

• Looking to utilise strong balance sheet for value adding opportunities.

Carrapateena • Updated Mineral

Resources in 2012 with a 43% increase over 2011 estimate. Significant copper deposit – exploration decline and studies underway.

Gawler Craton


SAFETY

• Continued improvement in total recordable injury frequency rate (TRIFR).

OZ Minerals Lost Time and Total Recordable Injury Frequency Rate 12 month moving average *

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4

5

6

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6

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9

10

11

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LTI F

requ

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Rat

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TRI F

requ

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Rat

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OZ Minerals TRIFR OZ Minerals LTIFR* Injuries per million man hours


CONCEPTUAL GROWTH VISION

This timeline is largely conceptual and provides a basis for management to plan the future development of the company and its potential activities. Such long term planning and vision is essential for resources companies. As this looks forward over many years, this planning and the timeline are by necessity subject to many variables, some of which may not eventuate, including successful resource drilling, suitable technical and cost outcomes, required regulatory and community approvals, adequate funding and favourable economic and market conditions, some of which may not be within the control of the company.


SOUTH AUSTRALIA PROMINENT HILL & CARRAPATEENA

• Very favourable mining jurisdiction.

• Excellent infrastructure including: road and rail, grid power to site and water supply.

• Export route via Adelaide. Utilising containerised land transport from mine into ships hold.

• Highly competitive shipping times to Asia.

• Access to 8,000km2 of exploration ground in South Australia (including IMX JV ground).


PROMINENT HILL PRODUCTION & GUIDANCE

Product: High grade (~50% Cu), high quality, copper concentrate.

Production 2012: 101,737t contained copper, 140,746oz gold.

Production guidance 2013:

Contained copper 90,000t to 95,000t.

Contained gold 130,000oz to 150,000oz.

Mine and Plant: Open pit and underground mine, crush, grind, flotation.

Cash costs: C1 cash costs US120.0c/lb for 2012.

C1 cost guidance 2013: US$1.50-US$1.65/lb. (increase over 2012, primarily due to full year of underground mining and lower payable metal production)

Workforce: Approximately 1,500 (including contractors).


PROMINENT HILL - DESIGN OF FINAL PIT CROSS SECTION: NORTH-SOUTH

Stage 1

Stage 2

Stage 3

Stage 4

0m

100m

200m

300m

400m

500m

293m (Current level)

221m (Stage1)

353m (Stage3)

473m (Stage4)

333m (Stage2)

• 2012/2013 sees significant waste movement.

• 2013 strip ratio to average between 11–12 to 1.

The Malu open pit will ultimately be 180 metres deeper than current level.


PROMINENT HILL: UNDERGROUND DIAMOND DRILLING IN ANKATA (LONG SECTION)

Resource drilling continues to show high grade mineralisation outside of Indicated Resource zone.

* Drill collars in diagram above represents significant intercepts shown in table.

Intercepts length weighted down-hole, >0.5% Cu with <2m down-hole of internal dilution, widths reported may not reflect true widths, please refer to the Prominent Hill 2012 Mineral Resource Explanatory and notes for further explanation on quality assurance.

Hole Number From (metres)

Interval (metres)

Copper (%)

PH12RD5612 167 7 1.7

PH12RD5612 189 7 5.4

PH12RD5639 155 53 3.7

PH12RD5640 129 42 3.9

PH12RD5641 118 10 2.1

PH12RD5641 131 7 1.1

Including

PH12RD5639 162 18 7.4


PROMINENT HILL: UNDERGROUND MINE DEVELOPMENT AT ANKATA (SECTIONAL VIEW)

Completed Development

2012 Resource (incremental increase over 2011 Resource)

2011 Resource

LEGEND

• 2.9Mt increase in Ore Reserves, effectively increasing its life by two years to ~2019.

• Resource drilling continues to show high grade intercepts outside of the current stope area.


PROMINENT HILL: (CROSS SECTION) MALU DECLINE & DRILLING UPDATE

Phase 1 of Malu Decline completed in Q4 2012.

Q4 Malu /Kalaya underground drilling


OBLIQUE VIEW

PROMINENT HILL: PIT DESIGN & RESOURCES UNDERGROUND

• Decline extension to provide access beneath the open pit completed in 2012.

• Resource drilling 2013/2014.

• Objective is to add 1-3 years mine life from immediate near-mine program.

• Deeper infill drilling to follow with access.

Copper Domain

Gold Domain

Current Pit Shell

Final Pit Shell

Underground Development

Exploration Decline

LEGEND


PROMINENT HILL: MALU UNDERGROUND DEVELOPMENT

Copper Domain

Gold Domain

Current Pit Shell

Final Pit Shell

Completed Development

Exploration Decline

LEGEND Proposed 2013 drilling

• Malu underground Resource drilling commenced in the December quarter.

• Malu Resource drilling will ramp-up throughout 2013 as hanging wall collar positions are developed.

• Underground drilling program expected to take 12-18 months.

• Mine development continues with first stoping ore expected in 2014.

OBLIQUE VIEW

50m


CARRAPATEENA: COPPER – GOLD DEPOSIT IN SOUTH AUSTRALIA

• Acquired in May 2011.

• 250km south-east of Prominent Hill.

• Tenement package consists of over 1,070sq km.

• Large IOCG deposit – similar to Prominent Hill.

• Some excellent drilling results during 2012. Including the best hole recorded for any project in 2012 as per IntierraRMG report 2013. (see next slide for record hole intercept)

• The 2012 Indicated and Inferred Resources of 292Mt represent a 43% increase over the 2011 resource at a 0.7% Cu cut-off.


CARRAPATEENA Q3 2012 DRILLING RESULTS: DD12CAR084W2 & DD12CAR090W1 ASSAYS

65m @ 4.48% Cu, 0.67 g/t Au , from 520m

143m @ 2.65% Cu, 1.16 g/t Au , from 622m

60.8m @ 2.07% Cu, 1.22 g/t Au , from 772m

91m @ 1.79% Cu, 1.31 g/t Au , from 876m

74m @ 2.55% Cu, 0.39 g/t Au , from 992m

111.5m @ 2.96% Cu, 0.40 g/t Au , from 1302.9m

1,131.8m @ 1.52% Cu and 0.63 g/t Au

Upper Bornite Zone

Lower Bornite Zone

89m @ 2.21% Cu, 1.12 g/t Au , from 1,179m

44m @ 3.14% Cu, 0.44 g/t Au , from 1,287m

54.2m @ 2.15% Cu, 0.87 g/t Au , from 1,335m

78m @ 2.88% Cu, 1.03 g/t Au , from 1,398m

91m @ 1.01% Cu, 0.55 g/t Au , from 1737m

Continuous mineralisation extending beyond current resource

Upper Bornite Zone

Lower Bornite Zone

Chalcopyrite Zone Chalcopyrite Zone

1,492.3m @ 0.90% Cu and 0.38 g/t Au

RL(m) RL(m) DD12CAR090W1 DD12CAR084W2

Looking North Looking West

* Intervals calculated using a 0.7% Cu cut-off grade and include up to 4m internal dilution. Intersections are all down hole measurements. Against 2011 Mineral Resource shell.


CARRAPATEENA: UPDATED INFERRED & INDICATED RESOURCES

2012 INDICATED & INFERRED RESOURCES 292Mt @ 1.29% Cu, 0.48 g/t Au 203Mt @ 1.31 % Cu, 0.56 g/t Au

2011 INFERRED RESOURCES

250m

Section 737800mE Looking West

• The 2012 Indicated and Inferred Resources of 292Mt represent a 43% increase over the 2011 resource at a 0.7% Cu cut-off.

• Much of the 2011 Exploration Target area has been converted to Mineral Resources in 2012.

• Infill exploration drilling program has better defined the higher grade bornite zones - now one bornite zone.

• Deeper infill exploration drilling has led to an extension of the Resource laterally and at depth.

* These wireframes show the interpreted limits of the Chalcopyrite envelope and Bornite zones respectively. These domains contain almost the entire resource. Intervals calculated using a 0.3% Cu cut-off grade.

Resource classification is shown in ‘stylised’ view at Section 737800mE with +/-50m window.

Indicated Resources

Inferred Resources

Exploration Target

LEGEND

Chalcopyrite Zone

Upper Bornite Zone

Lower Bornite Zone

Bornite Zone


CARRAPATEENA EXPLORATION DECLINE

Bornite Zone

Chalcopyrite Zone

• OZ Minerals Board approved exploration decline in June 2012.

• Commencement in 2013 – Phase 1 includes, completion down to 625m for geotechnical testing by 2014.

• Exploration decline will continue to a depth of approximately 1,000m for further exploration access.

• OZ Minerals has decided to use a Tunnel Boring Machine to accelerate development of the exploration decline.


CARRAPATEENA EXPLORATION DECLINE - UPDATE • OZ Minerals purchased a

remanufactured Tunnel Boring Machine (TBM) to fast track development of the exploration decline at Carrapateena.

• Expected cost of TBM including mobilisation $12-$15 million – to be commissioned in late 2013.

• Expected development rates between 350-550 metres per month.

• Expected time to reach geotechnical level ~625 metres below surface approximately 12 months ahead of traditional drill and blast.

• Exploration decline development costs $100-110 million.


CARRAPATEENA: NEW DISCOVERY KHAMSIN PROSPECT

• New regional discovery made at the Khamsin prospect.

• Khamsin prospect approximately 10kms northwest of Carrapateena.

• Geophysical signature is similar in size to Carrapateena.

• First drill hole with 440.6m @ 0.43% Cu.


CARRAPATEENA: NEW DISCOVERY KHAMSIN PROSPECT

• First hole at Khamsin prospect intersects mineralisation 440.6m @ 0.43% Cu.

• “Down hole” depth 1,005.4 metres.

• Depths to basement (from surface) approximately 500-600 metres.

• Further drilling expected in 2013.


BUSINESS DEVELOPMENT

• VALUE-ADDING GROWTH Through exploration JVs and M&A remains an important focus.

• COMMODITY Copper or copper dominant mineralisation.

• SCALE 50,000t – 150,000tpa production or future production potential.

• JURISDICTION Low to medium risk countries.

• TERMS 100% ownership or with partners depending on project.

• STAGE Advanced exploration, feasibility study, development, in production.


OZ MINERALS

Our strategy WHY INVEST?

• Highly regarded, strongly performing Australian copper asset in Prominent Hill.

• Active capital management – with over A$1 billion returned to shareholders since 2010, through capital returns, on-market share buyback programs and dividends.

• Strong balance sheet with significant cash balance, no debt – actively looking for value adding acquisitions.

• Underground mining gaining momentum through:

- Successful development of Ankata underground mine

- 2.9Mt increase in Ore Reserves at Ankata

- Mine development and resource drilling at Malu underground.

• Developing project pipeline – Carrapateena copper project.

• Paying dividends – 30-60% of normal operating profits (2012:60%).

• Experienced management team.

• Leverage to copper plus gold credits.

APPENDICES

1. PROMINENT HILL TENEMENT PACKAGE

2. PROMINENT HILL MILL PERFORMANCE

3. CARRAPATEENA

4. FINANCIAL INFORMATION


2.9

3.2

3.4

3.7

3.9

4.2

Feb-12 Apr-12 Jun-12 Aug-12 Oct-12 Dec-12 Feb-13

$

US$/lb A$/lb

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6

8

10

12

14

16

18

20

0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000

kg Cu/capita

GDP/capita at PPP

South Korea peak Germany peak

Japan peak

US peak

China current

China expected?

COPPER MARKET Chinese GDP & copper consumption 1980-2010

Source: Bloomberg Source: Global Insight, AME, McKinsey Global Institute, Wood Mackenzie, EIU, J.P. Morgan

Copper price

14

16

18

20

22

24

26

28

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Mt Cu

Available from base case mines plus highly probable projectsDemand for mine production capability (refined metal)Source Wood Mackenzie

• Requirement for 6.3Mt of new mine production capability by 2022.

• On average an additional 1 million tonnes of production is required per year to keep up with demand.

• New production to come on at a higher cost in jurisdictions that may be new to mining with deposits being deeper – underground mining will become the future.

Global Consumption & Mine Supply


PROMINENT HILL SITE • Commissioned in February 2009.

• Flat terrain.

• Fly in fly out workforce – competitive rosters and conditions, employee agreement in place until July 2015.

• Workforce of 1,500.

• High standard accommodation.

• Current operation open pit and underground mine.

• Ankata underground mine successfully integrated during 2012. 2013 first full year of production at a rate of 1.2 million tonnes per annum.

TAILINGS DAM

MALU PIT

ROM PAD PROCESSING PLANT

VILLAGE

ANKATA UNDERGROUND

MINE

NORTHERN WASTE DUMP

SOUTHERN WASTE DUMP


OZ MINERALS TENEMENT PACKAGE PROMINENT HILL & IMX JOINT VENTURE GROUND

LEGEND OZ Minerals tenements

IMX tenements Prominent Hill Mine

• 4,000km2 of 100% owned Prominent Hill ground.

• 3,000km2 of IMX Joint Venture ground.


PROMINENT HILL PRODUCTION SUMMARY

• Ankata reached production status 1 August 2012. • Current open pit fleet consisting of 49 trucks and 5 excavators. • 2013 peak year for waste movement with strip ratio between 11–12 to 1.

PROMINENT HILL PRODUCTION STATISTICS

2011 FULL YEAR

2012 FULL YEAR

MINED (TONNES) MALU ORE 11,333,854 7,329,430

ANKATA ORE - 424,965

WASTE 57,683,667 73,009,951

MINED GRADE MALU COPPER (%) 1.14 1.04

ANKATA COPPER (%) - 2.89

GOLD (G/T) 0.51 0.52

ORE MILLED TONNES 9,891,819 9,648,324

MILLED GRADE COPPER (%) 1.20 1.19

GOLD (G/T) 0.65 0.60

RECOVERY COPPER (%) 90.5 88.9

GOLD (%) 78.0 76.0

CONTAINED METAL IN CONCENTRATES

COPPER (TONNES) 107,744 101,737

GOLD (OZ) 160,007 140,746

Record material movement in 2012 – 27% increase in waste

mining.

High grade Ankata ore augmented lower grade from

Malu open pit in 2012

Mill continues to exceed nameplate capacity, increased treatment of gold ore reduced

throughput vs. 2011.

Copper and gold production in line with guidance


PROMINENT HILL PRODUCTION SUMMARY

• Consistent milling performance 25% above nameplate capacity. • Plant availability 92%, Copper recoveries of 91%.

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

0.0

0.2

0.4

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1.2

1.4

1.6

1.8

2.0

Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012

tonnes % Cu - Au g/t 2010-2012 Ore milled and grades

Ore Milled actual (dmt) Ore Milled name plate (dmt) Head Grade Au (g/t) Head Grade Cu (%)


CARRAPATEENA Q4 DRILLING RESULTS: DD12CAR106 ASSAYS (CROSS SECTION)

69.0m @ 1.68% Cu, 0.89 g/t Au, from 1,067.0m

* Intervals calculated using a 0.7% Cu cut-off grade, are down hole length-weighted and include up to 4m internal dilution.

Bornite Zone

Chalcopyrite Zone

203.3m @ 2.54% Cu, 0.61 g/t Au, from 1,168.0m

251.0m @ 3.27% Cu, 0.46 g/t Au, from 1,393.0m

Looking West

Hole DD12CAR106 was completed during the quarter. Assays received with continued excellent results.

1,094m @ 1.62% Cu and 0.47 g/t Au

Including significant intercepts of:

Hole Number Interval (metres)

Copper (%)

Gold (g/t)

DD12CAR106 69.0 1.68 0.89

DD12CAR106 203.3 2.54 0.61

DD12CAR106 251.0 3.27 0.46


CARRAPATEENA: FREMANTLE DOCTOR PROSPECT

• Fremantle Doctor prospect shows a potential extension of the mineralised zone around Carrapateena.

• Further geophysics and drilling are planned for 2013.


CARRAPATEENA: REGIONAL PROSPECTS

Geophysics over the region has identified nine targets for follow up drill testing.

N


MINING OPTIONS STUDY

Options: • Block caving. • Inclined sublevel caving. • Selective mining. • Stoping at higher levels, then caving.

Lower mining costs

Lower development costs

<$10/t $10-20/t $20-50/t

Block caving

Sublevel caving

Sublevel open stoping

Visual representation of the Carrapateena deposit


THREE MINING OPTIONS

SUB LEVEL CAVING

BLOCK CAVING

SUB LEVEL OPEN

STOPING


CARRAPATEENA COMPARABLE WITH OTHER GLOBAL BLOCK CAVES

Cu/Au grades and relative deposit size global block caves (Mt)

Red Chris

Grasberg GBCGrasberg DOZNorthparkes Lift 2

Bingham Canyon SE mine

Grasberg IOZ

Northparkes E48

Northparkes Lift 1

Bingham Canyon NE mineWafi-Golpu

Carrapateena

Ridgeway Deeps

Oyu-Tolgoi Hugo North Lift

Cadia East

0.00

0.25

0.50

0.75

1.00

1.25

1.50

1.75

2.00

0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00

Au g/t

Cu %

Source: OZ Minerals research * NB: Carrapateena based on target range not Resource or Reserve

Operating mines Development project Size = Reserves Mt


CAVING MINING OPERATIONS AND PROJECTS

CARRAPATEENA

Afton

Henderson Questa

Salvador

Andina El Teniente

Finsch

Koffiefontein Kimberley

Cullinan

Palabora

Tongkuangyu

Padcal

DOZ

Northparkes

Cadia East Ridgeway Deeps

Pebble

Bingham Canyon UG

Resolution

Chuquicamata UG Collahuasi UG

Sur Sur UG

New Mine Level

Palabora L2

Oyu Tolgoi

Kucing Liar DMLZ Grasberg UG

Golpu Argyle

Northparkes II

Planned Operation

Operating Mines


2012 FINANCIAL OVERVIEW

• Prominent Hill revenue of $985.7 million.

• OZ Minerals’ underlying EBITDA of $334.1 million, lower than 2011 due to:

− Reduced copper prices with lower copper and gold sales

− Draw down of stockpiles (ore & concentrates)

− Higher costs due to increased material movement and depth of open pit

− Increased expenditure on exploration at Carrapateena

• OZ Minerals’ underlying NPAT of $152.0 million.

• Cash flow from operations $318.8 million.

• Total 2012 dividend (unfranked) 30 cents per share

− Actual payout ratio for 2012 60% , at top of range.

• Cash balance of $659.0 million at 31 December 2012.


2013 EXPLORATION COMMITMENT

• Total exploration budget for 2013: $58 million.

• Prominent Hill exploration $25 million of which $17 million is expected to be capitalised resource drilling in the Malu underground.

• Further regional exploration drilling and geophysics at Khamsin and Fremantle Doctor prospects.

• Late 2013 – Tunnel Boring Machine commence the exploration decline at Carrapateena to allow geotechnical testing.

Prominent Hill - Regional (Expensed)

Prominent Hill - Underground Resource Drilling (Capitalised)

Carrapateena - Regional (Expensed)

Carrapateena - Decline (Expensed)

Global - Project Generation (Expensed)

$7m

$13m $13m

$17m

$8m


0.50

0.70

0.90

1.10

1.30

1.50

1.70

1.90

FY 2012US$1.20/lb

Payable Metal Higher mining costsinc. Ankata

GoldFx

FY 2013US$1.50-$1.65/lb*

US$/lb Unit Cost C1 -2012 vs. 2013

2013 C1 GUIDANCE

• Assumptions used for 2013 C1 cost estimates, Gold=US$1,850/oz. and A$/US$=1.01

Lower copper production - guidance of 90,000 to

95,000 tonnes

Gold pricing and foreign exchange

Higher mining costs including

the full year impact of Ankata

* Excluding the effect of adoption of accounting interpretation IFRIC 20.


INCOME STATEMENT 10% reduction in A$ copper price combined with lower copper sales.

Draw down of inventories: ore and concentrate. Increased depth of open pit and start of Ankata in 2012.

Increased exploration at Carrapateena expensed.

Lower average cash balances generating less interest income.

Corporate, site services and general administration.

A$M Dec'11 Dec '12

Revenue 1,115.9 985.7

Cost of goods sold (incl employee benefits) (403.4) (499.4)

Net foreign exchange (loss)/gain 5.3 (11.3)

Exploration expense (77.7) (114.1)

Gain on sale of Cambodia - 18.8

Other income 1.3 7.9

Other expenses (55.8) (53.5) Underlying EBITDA 585.6 334.1

Depreciation and amortisation (164.2) (154.9) Underlying EBIT 421.4 179.2

Net financing income 34.1 19.9

Income tax expense (132.8) (47.1) Underlying NPAT 322.7 152.0

Litigation settlement expense (42.2) -

Impairment (15.2) - NPAT (from continuing operations) 265.3 152.0 Discontinued operations 9.2 - NPAT 274.5 152.0


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50.0

100.0

150.0

200.0

250.0

300.0

350.0

322.7 (56.8) (16.6) 249.3 (69.2) (58.8) (17.6) (19.8) (17.6) 85.7 152.0

2011Underlying

Commoditypricing

FX SalesVolume

Non-CashCosts

CashCosts

Ankata Exploration/Cambodia

IncomeTax

2012Underlying

A$M Variance Analysis - Underlying NPAT 2011 vs. 2012

UNDERLYING NPAT

MARKET DRIVEN BUSINESS DRIVEN

10% reduction in US$ copper price 2012 2012 Avg LME Price US$3.61/lb (2011: US$4.00/lb).

Foreign exchange loss compared to foreign exchange gain in 2011.

Lower contained copper and gold sales.

Draw down on ROM and concentrate stocks, partially offset by lower depreciation.

Higher mining costs related to increased depth of pit and increased movement, offset by capitalisation of deferred waste.

Increased drilling at Carrapateena


0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

886.1 904.9 (487.8) (320.3) (114.1) 14.9 883.7 (124.6) (100.1) 659.0

OpeningCash

Receiptsfrom

Customers

Suppliers and

employees

PP&E/ Investing

Exploration Other Cash beforedistribution

Dividend Sharebuyback

ClosingCash

(A$M) Cash flow for the year - Dec 2012

CASH FLOW

• Ankata $51m • Deferred waste $165m • Sustaining $49m • Thiess lease $64m • Cambodia sale ($8m)

Consumables, contractors and employees.

• Carrapateena $59m • Prominent Hill $44m • Chile $3m • Other $8m

Timing of receivables and lower average commodity price.


BALANCE SHEET

• Significant balance sheet flexibility in order to pursue strategy.

Strong cash balance.

Higher balance due to December sales – realised in 2013.

Mainly Carrapateena and Sandfire investments.

Increase due to waste deferral and completion of Ankata underground mine in 2012.

Debt free balance sheet, US$200m facility remains undrawn.

A$M

ConsolidatedDec '11

ConsolidatedDec'12

AssetsCash 886.1 659.0 Receivables 86.8 171.7 Inventories 297.1 258.5 Prepayments 7.1 5.9 Current tax asset - 5.1 Investments & exploration assets 502.0 568.2 PP&E and leased equipment 1,243.4 1,417.2 Total Assets 3,022.5 3,085.6

LiabilitiesCreditors 90.5 108.3 Current tax liability 16.2 -Net deferred tax liability 100.2 162.1 Provisions 21.4 29.3 Total Liabilities 228.3 299.7 Net Assets 2,794.2 2,785.9


C1 COST HISTORY MAR QTR

'11JUN QTR

'11SEP QTR

'11DEC QTR

'11DEC YTD

'11MAR QTR

'12JUN QTR

'12SEP QTR

'12DEC QTR

'12DEC YTD

'12

MINING COSTS 101.2 108.7 116.7 129.3 114.1 153.5 174.9 215.5 264.7 200.0DEFERRED MINING 17.6 (12.6) 1.9 (16.0) (2.6) (45.1) (75.7) (93.3) (103.7) (78.3)ORE INVENTORY ADJ (26.3) (10.0) (24.7) (8.9) (17.3) 12.4 26.2 7.3 (2.7) 11.1TOTAL MINING COSTS 92.5 86.2 93.9 104.4 94.2 120.8 125.5 129.5 158.3 132.8

TOTAL SITE PROCESSING COSTS 39.7 41.3 46.2 47.2 43.7 46.1 49.8 47.3 53.4 49.0TC AND TRANSPORT 26.8 26.4 26.2 28.2 26.9 29.8 29.7 33.6 37.9 32.6NET BY-PRODUCT CREDIT (108.0) (115.6) (111.1) (115.4) (112.8) (118.5) (105.6) (110.1) (118.4) (113.1)OTHER DIRECT CASH COSTS 19.4 17.8 16.6 19.8 18.4 18.7 19.1 17.6 19.7 18.7TOTAL C1 COSTS 70.3 56.1 71.8 84.2 70.4 96.9 118.5 117.9 150.9 120.0

ROYALTIES 7.8 7.6 7.5 4.4 6.8 7.0 6.6 6.5 6.7 6.7OTHER INDIRECT COSTS 21.2 28.8 27.0 30.6 27.0 23.9 30.3 29.4 25.8 27.3TOTAL CASH COSTS 99.3 92.5 106.2 119.2 104.7 127.8 155.4 153.8 183.4 154.0

DD&A 78.4 70.9 71.3 64.6 71.2 66.0 67.7 68.3 88.9 72.3OTHER NON CASH COSTS (8.5) (3.7) (2.3) 0.9 (3.3) 2.9 3.5 1.3 0.5 2.1TOTAL PRODUCTION COSTS 169.3 159.7 175.2 184.7 172.1 196.7 226.6 223.4 272.8 228.4


PRODUCTION HISTORY MAR QTR

'11JUN QTR

'11SEP QTR

'11DEC QTR

'11DEC YTD

'11MAR QTR

'12JUN QTR

'12SEP QTR

'12DEC QTR

'12DEC YTD

'12

MINED MALU ORE 3,474,311 2,840,117 2,807,269 2,212,157 11,333,854 1,945,417 1,699,331 1,712,058 1,972,624 7,329,430 ANKATA ORE 17,653 76,559 130,441 199,560 424,965 WASTE TONNES 13,761,825 15,434,750 14,220,747 14,266,345 57,683,667 16,102,251 17,755,300 19,442,709 19,709,691 73,009,951

MINED GRADE MALU COPPER % 0.99 1.20 1.15 1.28 1.14 1.11 1.27 1.19 0.84 1.04 ANKATA COPPER % 3.16 2.74 3.19 2.73 2.89 GOLD G/T 0.55 0.52 0.47 0.47 0.51 0.49 0.53 0.49 0.57 0.52 SILVER G/T 2.07 2.74 2.72 3.18 2.62 2.88 3.02 3.51 3.00 3.10

ORE MILLED 2,532,835 2,431,303 2,484,882 2,442,800 9,891,819 2,460,397 2,425,495 2,433,836 2,328,597 9,648,324 MILLED GRADE COPPER % 1.12 1.27 1.21 1.22 1.20 1.24 1.20 1.18 1.12 1.19

GOLD G/T 0.67 0.72 0.58 0.61 0.65 0.63 0.59 0.60 0.57 0.60 SILVER G/T 2.01 2.42 2.65 3.03 2.52 3.15 2.71 3.09 3.25 3.05

RECOVERY COPPER % 90.9 90.5 90.8 89.9 90.5 89.2 87.7 89.6 89.1 88.9 GOLD % 77.2 78.1 78.2 78.6 78.0 77.9 75.4 75.4 75.0 76.0 SILVER % 75.9 80.6 79.1 71.0 76.4 77.9 76.1 75.7 75.6 76.3

COPPER CONC PRODUCED TONNES 49,527 51,731 49,804 53,163 204,225 55,322 51,466 49,633 45,934 202,355 CONCENTRATE GRADE COPPER % 51.9 54.2 54.6 50.4 52.8 49.1 49.6 51.9 50.7 50.3

GOLD G/T 26.3 26.6 22.5 22.1 24.4 21.9 20.8 22.0 21.9 21.6 SILVER G/T 77.9 91.7 104.7 98.7 93.3 109.1 97.2 114.7 124.7 111.0

CONTAINED METAL IN CONCENTRATES COPPER TONNES 25,708 28,017 27,217 26,802 107,744 27,182 25,521 25,738 23,296 101,737

GOLD OZ 41,910 44,218 36,064 37,814 160,007 38,887 34,475 35,111 32,273 140,746 SILVER OZ 124,033 152,467 167,620 168,782 612,901 194,000 160,795 183,106 184,097 721,998

OZ MINERALS • NOVEMBER 2009 • PAGE 47

COMPETENT PERSONS STATEMENT Within this presentation are references to a summary of information relating Prominent Hill Mineral Resources. The Prominent Hill Mineral Resources are set out in the Prominent Hill Mineral Resources and Ore Reserves Statement as at 30 June 2012. This information has been compiled by John Penhall and Andrew Loreck who are both full time employees of OZ Minerals and members of Australasian Institute of Mining and Metallurgy (AusIMM).

This information and exploration results relating to Prominent Hill has been approved for release in the form and context in which it appears by Mr Jim Hodgkison who is a full time employee of OZ Minerals and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a competent person as defined in the 2004 edition of the Australasian Code For Reporting Of Exploration Results, Mineral Resources and Ore Reserves.

Information in this presentation which refers to Prominent Hill Ore Reserves is a summary of information relating to Ore Reserves as set out in the Prominent Hill Mineral Resources and Ore Reserves Statement as at 30 June 2012. This information has been approved for release in the form and context in which it appears by Mr Justin Taylor who is a full time employee of OZ Minerals and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity undertaken to qualify as a competent person as defined in the 2004 edition of the Australasian Code For Reporting Of Exploration Results, Mineral Resources and Ore Reserves.

Within this presentation are references to exploration results relating to Carrapateena are based on information compiled by Mr Marcel Van Eck Msc who is a full-time employee of OZ Minerals, is a member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities undertaken to qualify as a competent person as defined by the JORC code (2004). Mr Van Eck has consented to the inclusion of the material in the form and context in which it appears.

The information in this presentation which refers to Carrapateena Mineral Resources is based on information compiled by Stuart Masters who is a member of the Australasian Institute Of Mining And Metallurgy (AusIMM) (108430). Stuart Masters is employed by CS-2 Pty Ltd and is a consultant to OZ Minerals. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2004 edition of the Australasian Code For Reporting Of Exploration Results, Mineral Resources And Ore Reserves (JORC 2004). Stuart Masters consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Stuart Masters Bsc (Geology), CFSG, has over 26 years of relevant experience as a geologist including 9 years in iron-oxide-copper-gold style deposits. Stuart Masters has visited site on many occasions since OZ Minerals acquired the project. All other references to exploration results within this presentation are based on information compiled by Mr Anthony Houston Bsc who is a full-time employee of OZ Minerals, a member of the Australian Institute Of Geoscientists and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activities undertaken to qualify as a competent person as defined by the JORC Code (2004). Mr Houston has consented to the inclusion of the material in the form and context in which it appears within this presentation to exploration results relating to Prominent Hill and Carrapateena. For full details of the 2012 Prominent Hill Mineral Resources and Ore Reserves Statement and details relating to the 2012 Carrapateena Mineral Resources Statement for 2012 go to http://www.ozminerals.com/operations/resources--reserves.html

http://www.ozminerals.com/operations/resources--reserves.html

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