md presentation release vs final - panaust · 2012. 9. 12. · operations in 2009 of over us$0.5bn...
TRANSCRIPT
23 May 2008Annual General Meeting
P A N A U S T R A L I A NR E S O U R C E S L I M I T E D
Share price performance
Share price more than trebled in 2007; up a further 20% since 1 January 2008
Entered the S&P/ASX 200 Index in August 2007
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Phu Kham Phase 1 Development
Delivered within capital budget; US$241m (50/50 debt/equity)
Lowest quartile capital intensity1
Lowest strip ratio (1:1) world best for primary copper ore-body2
Second quartile cash operating costs3; ~US¢91/lb after precious metal credits4
Ore Reserve contained copper increased by over 25%; higher grade, more ore tonnes
1, 2, 3 – Reference: CRU
4 – Price assumptions: US$700/oz gold, US$14/oz silver
Phu Kham Operations
Copper-gold concentrate production commenced April 2008
First concentrate sales June qtr 2008
2008 production of ~120,000t conc:
30,000t copper, 57,000oz gold1, 300,000oz silver
2009 production of ~240,000t conc:
60,000t copper, 80,000oz gold2, 600,000oz silver
1 – Assumes 30,000oz from the Phu Kham Heap Leach Gold Operation2 – Assumes 20,000oz from the Phu Kham Heap Leach Gold Operation as oxide gold reserves are depleted
Phu Kham Phase 2 Expansion
From 2010 average annual output to increase to approx.:
75,000t copper, 65,000oz gold and 600,000oz silver
Expansion to cost only US$40m; scheduled for completion during December qtr 2009
Phu Kham Heap Leach Gold Operation
Successful implementation of seasonal leach operation in 2007
Record gold production for 2007; 31,380oz
Fully integrated with copper-gold operation, scheduled to be depleted at end of 2009
Scheduled to contribute:30,000oz in 2008, and20,000oz in 2009
Process plant
Phu Kham cash flow
120
245
385
485
310
150
0
100
200
300
400
50012Mt/yr Phase 1 (2009)16Mt/yr Phase 2 (from 2010)
Copper US$2.00/lbGold US$600/ozSilver US$14/oz
Copper US$3.00/lbGold US$700/ozSilver US$14/oz
Copper US$4.00/lbGold US$1000/ozSilver US$14/oz
Indicative pre-tax cash flows at various price assumptionsUS$M
Marketing – the BHP Billiton advantage
BHP Billiton – manager of all concentrate sales - exposure to global market presence and expertise
Spot sale contracts for ~30% of production between 2008 and 2010 at combined smelter charges of only ~US$0.05/lb (~50% of benchmark terms)
First concentrate delivered to the port yesterday
Benefits to Laos
Over 90% of the 1,140 employees at Phu Kham are LaoIncluding 400 local villagers
Lao Technician (Apprenticeship) Program established
Joint cooperation agreement to enhance skills of graduates from the Lao polytechnic system
Work experience program
Benefits to Laos
US$300,000 Community Development Fund launched to develop sustainable socio-economic livelihoods beyond the life of the mine
Estimated export value from Phu KhamOperations in 2009 of over US$0.5bn –compared to US$1.0bn in total exports from Laos in 2007
Lao government is a 10% shareholder in Phu Bia Mining Limited
Lao government will also receive substantial income from taxes and royalties
Exploration – searching for elephants
Organic growth a priority
US$30m exploration and evaluation budget for 2008
Ban HouayxaiGold-Silver Project
PhonsavanCopper Project
Pha Nai Copper Prospect
Phu KhamCopper-Gold
Operation
Puthep Copper Project
Project 100
Target is to produce 100,000t copper per annum from the Phu Kham Operation
Conceptual studies are underway
Near-Mine Exploration Potential
Searching for an additional 50Mt to support Project 100 objective
Similar host-rock geology to Phu Kham; extends over 800m
Copper mineralisation confirmed by soil sampling
Scout drilling commenced
Target area for step-out drilling
Phu Khamcopper-gold
open pit
Organic Growth - A Priority
Ban HouayxaiGold-Silver
Project
PhonsavanCopper Project
Pha Nai Copper Prospect
Phu Kham Copper-Gold Mine Expansion Project
Puthep Copper Project
Ban Houayxai Gold-Silver Project
Target - ore reserve to support a +100,000oz/yr gold operation
Pre-feasibility study September quarter 2008
Target for first gold production in 2011, subject to feasibility
Preliminary carbon-in-leach test work results indicate excellent recoveries: +90% for gold, +80% for silver
Ban Houayxai Gold-Silver Deposit
North Primary Zone
South Primary Zone
Oxide Resource
Steeply dipping zone of primary gold mineralisation; contains bonanza grade chutes
Puthep Copper Project, Thailand *
* The Puthep Project is a joint venture between PanAust Limited and PadaengIndustry Public Company. PanAust will earn a 51% interest in Puthep by completing a feasibility study on the Puthep Copper Project and has further options to acquire a total 60-70% interest.
PUT 1 near-surface Mineral Resource (0.1% Cu cut-off):
Indicated– 22Mt @ 0.4% CuInferred – 62Mt @ 0.4% Cu
Targeting 100Mt of extra resource to support attributable production of 30,000t copper/annum
Feasibility study March qtr 2009
Puthep Copper Project
Puthep Copper Project – another Phu Kham?
86m @ 0.6% Cu, 0.1g/t Au 48m @ 1.1% Cu, 0.5g/t Au
90m @ 0.6% Cu, 0.2g/t Au
240m @ 0.6% Cu, 0.2g/t Au incl. 10m @ 1.6% Cu, 0.5g/t Au& 23m @ 2.1% Cu, 0.7g/t Au
250m @ 0.4% Cu, 0.1g/t Au Inc. 27m @ 1.0% Cu, 0.2g/t Au
18m @ 1.0% Cu, 0.1g/t Au 26m @ 0.4% Cu, 0.1g/t Au 14m @ 1.3% Cu, 0.5g/t Au
14m @ 0.3% Cu, 15.8g/t Au
84m @ 0.8% Cu, 0.1g/t Au
Pipeline of Growth Projects
0
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2008 2009 2010 2011 2012
Cop
per E
q.1 (t
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Heap leach gold Phu Kham gold + silver Phu Kham copper Growth Target
1 Copper equivalent assumptions: copper US$2/lb, gold US$600/oz, silver US$12/lb2 Subject to feasibility study and other project approvals
Ban Houayxai Gold-Silver2
Puthep Copper2
Phu Kham expansion
2
Acquisition Ready
New opportunity evaluation team
Philosophy – give organic growth a chance but don’t rely solely on exploration
This presentation has been prepared by the management of PanAust Limited (the 'Company') for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person.
The information is based on publicly available information, internally developed data and other sources. No independent verification of those sources has been undertaken and where any opinion is expressed in this document it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to the origin, validity, accuracy, completeness, currency or reliability of the information. The Company disclaims and excludes all liability (to the extent permitted by law), for losses, claims, damages, demands, costs and expenses of whatever nature arising in any way outof or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it.
Where the Company expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future projects, such expectation or belief is based on management’s current predictions, assumptions and projections. However, such forecasts are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed, projected or implied by such forecasts. Such risks include, but are not limited to, exploration success, gold and copper price volatility, changes to the current mineral resource estimates, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. For more detail of risks and other factors, refer to the Company’s other Australian Securities Exchange announcements and filings. The Company does not have any obligation to advise any person if it becomes aware of any inaccuracy in, or omission from, any forecast or to update such forecast.
Important Notice
Calculation of copper equivalent tonnes
Copper equivalent production referred to in this report was calculated by combining copper, gold and silver production using thefollowing equation:
Copper equivalent tonnes = copper tonnes + value of gold produced (US$) + value of silver produced (US$)copper price (US$/tonne)
Assumptions unless otherwise stated are:Copper US$2.00/lbGold US$600/ozSilver US$12/oz
Calculation of copper equivalent tonnes
The data in this report that relates to Exploration Results and Mineral Resources are based on information reviewed by Mr DanielBrost who is a Member of the Australasian Institute of Mining and Metallurgy.
Mr Brost is a full time employee of PanAust Limited. Mr Brost has sufficient experience 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. Mr Brost consents to the inclusion in the report of the matters based on his review in the form and context in which it appears.