oz metals 20141101

Oz Metals 1st Nov 2014

DISCLAIMER

This report is provided in good faith from sources believed to be accurate and reliable. Terra Studio Pty Ltd directors and employees do not accept liability

for the results of any action taken on the basis of the information provided or for any errors or omissions contained therein. Readers should seek investment advice from their professional advisors before acting upon information contained herein.

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GOLD HORROR SHOW ON HALLOWEEN Base Metals & Precious Metals Fundamentals

Sources: Metal Prices, RBA, Terra Studio

$40

$45

$50

$55

$60

$65

$70

Jan-14 Apr-14 Jul-14

CIF

Pri

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hin

ese I

mp

ort

s

Bauxite

US$/t $A/t

$2.80

$2.90

$3.00

$3.10

$3.20

$3.30

$3.40

$3.50

$3.60

$3.70

$3.80

0

100

200

300

400

500

600

Jan-14 Apr-14 Jul-14 Oct-14T

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Copper

SHFE COMEX LME

US$ A$

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

Jan-14 Apr-14 Jul-14 Oct-14

Gold

A$

US$$15.0

$17.5

$20.0

$22.5

$25.0


Silver

A$

US$

$5.00

$6.00

$7.00

$8.00

$9.00

$10.00

$11.00

0

100

200

300

400

500


Th

ou

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d T

on

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Nickel

LME US$ A$

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

$1.20

$1.25

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800


Th

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Zinc

SHFE LME

US$ A$


DISCLAIMER



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Markets & Majors

The gold price was battered on Halloween week by a

quadruple shot – the end US economic stimulus, a record-setting surge in equities, further falls in the crude oil price and a rampant US dollar. Next likely target US$1,000/oz and possibly a lot more blood to come.

Burkina Faso’s government has collapsed and is

essentially in complete disarray. After a day of violent protests, the military seized power and effectively dissolved the country’s parliament. This is a surprise, coming out of one of the more stable countries in West Africa and one that has avoided brutal decade-long civil wars like the ones seen in neighboring Sierra Leone and Liberia. Most of the gold producers are TSX-listed companies, but ASX-listed developers have been affected as well.

Chilean President Michelle Bachelet signed into law the legislation that will allow the government to provide US$4 billion in funding to state-owned miner Codelco. Bachelet

said the funding is necessary to advance the company's US$23.5 billion investment program over the next four to five years. In response to the bill's signing, Codelco CEO Nelson Pizarro said that the company would make "all necessary adjustments" to fulfill its investment agenda.

The Wall Street Journal reported that Barrick could be

forced to shutter its Lumwana copper mine in Zambia should the country's parliament pursue plans to increase mineral royalties to 20% from the current 6% beginning in January 2015. The company also intends to apply for a water permit for its suspended Pascua Lama gold project in Antacama, Chile, in the first quarter of 2015, Business News Americas reported.

BHP Billiton said that plans to resume expansion at its massive Olympic Dam copper and uranium mine in South

Australia’s outback is off the agenda until commodity prices come back up.

Rio Tinto is set to take a US$2.5 billion write-down on its embattled Oyu Tolgoi copper project in Mongolia, as a

long-running tax dispute with the country’s government has caused delays and losses.

Thomson Reuters - China's copper smelters may be paid

between 9% and 20% more in fees for processing raw material concentrate next year by global miners, reflecting higher world mine production, executives at smelters and traders said. Chinese smelters expect the benchmark treatment and refining charges (TC/RC) for term shipments

of clean, standard copper concentrate to rise to $100-110/t and 10-11¢/lb in 2015 from $92 and 9.2¢ in 2014. Mine output is estimated to rise 8.6% year-on-year in 2015, according to Reuters' data. Chinese smelters had earlier expected the 2015 TC/RC at about $115 and have lowered expectations slightly after discussions with global miners in the LME week in London last week.

Gold imports from Hong Kong to China reached a five-

month high in September as the holiday sales season approached, according to Bloomberg News. Net imports totaled 61.7 tonnes last month.

Thomson Reuters - A new electronic gold price mechanism is expected to be in operation early in the first quarter of 2015, replacing the century old gold benchmark, the London Bullion Market Association said. The gold industry group said it has launched a survey to request further feedback from market participants on the proposed solutions. Participants will be asked to confirm which solution they will be willing to participate in, the LBMA said. LBMA said it expects a market consensus will emerge in November after consultation with regulators.

Nickel recorded its longest losing streak since July 2001 at

seven weeks, as stockpiles reached an all-time high. According to Bloomberg News, inventories have ballooned 15% since Sep 1 on a slowing Chinese economy.

Thomson Reuters - Commodity trading giant Trafigura could

raise its stake in Belgium's Nyrstar, strengthening its grip on the world's largest zinc producer as tighter supplies and

mine closures are forecast to boost prices for the metal. Industry sources say Trafigura, the world's second-largest metals trader, could as much as double its stake of just over 10% - a US$120 million holding amassed this year which already makes it the company's top investor. Major commodities traders, their margins under pressure, have increasingly sought to secure metals for trade by taking shares in mine or signing supply deals. The sources said Trafigura would use its higher shareholding to secure attractive marketing rights for some of Nyrstar's lead and zinc, potentially by taking over a sales agreement signed by Nyrstar with rival trader Noble a year ago. "I think they will try to raise their stake to around 20 or 25%, so that they can influence the board's decisions," one industry source said.

Funding, Mergers & Acquisitions

AFR - Australian copper explorer Cudeco has refuted claims that it received offers from U.S. hedge funds to raise additional funds through the issuance of convertible notes. In an Oct. 23 report, The Australian Financial Review wrote that the ASX-listed company looked to raise A$50 million to A$100 million for the development of its Rocklands copper project in Queensland, Australia.

Mutiny Gold and Doray Minerals have revealed their plans to merge to create what they claim will be a leading Western Australian mid-tier gold company. In a joint statement, the pair said Doray will acquire Mutiny via a unanimously recommended off-market takeover offer of 1 new Doray share for every 9.5 Mutiny shares held. The offer values Mutiny at about A$36 million, or 5.4 cents per share.

Padiham Resources Pty. Ltd. achieved a 91.97% relevant interest in Robust Resources Ltd. and has lodged compulsory acquisition notices for all outstanding Robust shares.

Bauxite Sector

Source: ASX

Code Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABX Australian Bauxite 0.32 ▲ 5% 45% 41 2 39

BAU Bauxite Resources 0.13 — 0% 4% 29 41 (12)

CBX Cape Alumina 0.016 — 0% (47%) 4 1 3


DISCLAIMER



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Copper Producers

Source: SNL

Copper Developers & Explorers

Source: SNL

Gold Producers

Source: SNL

Gold Developers & Explorers

Source: SNL

Lithium & Tantalum Sector

Source: SNL

Nickel Sector

Source: SNL

Zinc & Poly-metallic Sector

Source: SNL

For further information, please contact: J-François Bertincourt

m +61 406 998 779

[email protected]


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

ABY Aditya Birla Minerals 0.24 ▲ 12% (29%) 75 137 (61) NM

AOH Altona Mining 0.24 ▲ 4% 45% 128 18 113 3.2x

DML Discovery Metals 0.030 — 0% (43%) 19 5 139 2.4x

HGO Hillgrove Resources 0.55 ▼ (6%) (24%) 81 16 95 2.3x

KBL KBL Mining 0.044 — 0% 0% 17 7 33 2.0x

OZL OZ Minerals 3.87 ▼ (5%) 23% 1,174 364 1,020 5.6x

PNA PanAust 1.71 ▼ (0%) (5%) 1,089 146 1,305 NA

SFR Sandfire Resources 5.61 ▼ (2%) (13%) 874 58 977 4.4x

SRQ Straits Resources 0.005 — 0% (38%) 6 13 129 17.5x

TGS Tiger Resources 0.26 ▼ (2%) (25%) 297 42 427 NA

985 CST Mining 0.006 ▲ 2% (34%) 175 146 20 NM

1208 MMG 0.38 ▲ 2% 58% 2,010 154 3,906 4.4x

3993 China Molybdenum 0.68 ▲ 2% 33% 5,955 347 6,562 NA

MWE Mawson West 0.15 ▼ (17%) (75%) 25 54 19 NM


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ARE Argonaut Resources 0.018 — 0% (24%) 8 2 5

AVB Avanco Resources 0.088 ▼ (2%) 24% 146 32 114

AVI Avalon Minerals 0.004 — 0% (60%) 6 1 5

AZS Azure Minerals 0.023 — 0% (23%) 19 1 18

BTR Blackthorn Resources 0.26 — 0% 0% 43 12 30

CDU CuDeco 1.39 ▲ 7% (23%) 326 9 317

ENR Encounter Resources 0.19 ▼ (5%) 0% 25 4 22

ERM Emmerson Resources 0.036 ▲ 6% (7%) 14 2 12

FND Finders Resources 0.150 — 0% (28%) 99 8 84

GCR Golden Cross Resources 0.091 ▼ (9%) (9%) 9 2 6

GPR Geopacific Resources 0.066 ▼ (7%) 120% 19 3 19

HAV Havilah Resources 0.150 ▲ 11% (38%) 23 6 20

HCH Hot Chili 0.22 ▲ 5% (49%) 75 13 73

HMX Hammer Metals 0.095 ▼ (10%) (53%) 8 1 7

IAU Intrepid Mines 0.23 ▼ (6%) (29%) 125 11 (33)

IRN Indophil Resources 0.28 ▼ (2%) 70% 337 215 128

KDR Kidman Resources 0.095 ▲ 27% (49%) 11 3 8

KGL KGL Resources 0.27 ▼ (2%) 157% 38 7 24

MEP Minotaur Exploration 0.17 ▼ (3%) 14% 25 5 21

MNC Metminco 0.011 ▼ (15%) (65%) 20 8 16

PEX Peel Mining 0.060 ▼ (22%) (77%) 8 3 5

RDM Red Metal 0.17 ▲ 3% 13% 30 2 28

RXM Rex Minerals 0.22 ▼ (5%) (54%) 49 3 46

SMD Syndicated Metals 0.039 ▼ (13%) 15% 11 2 9

SRI Sipa Resources 0.040 — 0% (29%) 11 2 9

SUH Southern Hemisphere 0.055 ▼ (2%) 10% 14 2 11

THX Thundelarra Resources 0.115 — 0% 203% 37 1 36

XAM Xanadu Mines 0.10 ▼ (5%) 90% 23 4 24


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

AGD Austral Gold 0.13 ▲ 13% 8% 22 NA 82 6.9x

ALK Alkane Resources 0.23 ▼ (8%) (34%) 93 16 77 11.4x

AMI Aurelia Metals 0.30 ▼ (6%) 30% 103 22 188 NM

BDR Beadell Resources 0.26 ▼ (23%) (68%) 204 10 266 2.1x

DRM Doray Minerals 0.38 ▼ (21%) (32%) 63 16 63 1.9x

EVN Evolution Mining 0.60 ▼ (6%) (2%) 429 32 559 2.7x

IGO Independence Group 4.54 ▲ 2% 46% 1,064 57 1,035 7.4x

KCN Kingsgate Consolidated 0.73 ▼ (5%) (18%) 162 54 262 NM

KRM Kingsrose Mining 0.37 ▼ (4%) 9% 131 7 136 NM

LSA Lachlan Star 0.040 ▼ (11%) (80%) 7 2 24 8.8x

MIZ Minera Gold 0.005 ▼ (18%) (36%) 11 0 16 NM

MLX Metals X 0.21 ▼ (2%) 24% 348 57 291 4.1x

MML Medusa Mining 0.60 ▼ (16%) (71%) 124 14 119 2.2x

MOY Millennium Minerals 0.070 ▼ (7%) (63%) 15 2 53 5.5x

NCM Newcrest Mining 9.32 ▼ (7%) 19% 7,141 141 11,202 NM

NGF Norton Gold Fields 0.12 ▼ (11%) (11%) 112 38 212 NA

NST Northern Star Resources 1.10 ▼ (11%) 40% 651 82 575 6.9x

OGC OceanaGold Corp. 1.86 ▼ (22%) 12% 560 28 680 3.8x

PGI PanTerra Gold 0.035 ▲ 13% (15%) 29 6 94 4.7x

PRU Perseus Mining 0.31 ▼ (9%) 27% 163 37 133 24.0x

RMS Ramelius Resources 0.047 ▼ (8%) (51%) 22 12 12 NM

RRL Regis Resources 1.38 ▼ (8%) (53%) 690 7 723 NM

RSG Resolute Mining 0.32 ▼ (4%) (42%) 205 19 237 2.2x

SAR Saracen Mineral Holdings 0.29 ▼ (11%) 58% 226 36 204 4.9x

SBM St Barbara 0.11 ▼ (19%) (58%) 54 79 314 NM

SLR Silver Lake Resources 0.28 ▼ (17%) (49%) 138 24 127 NM

TBR Tribune Resources 3.05 ▼ (2%) 31% 153 11 168 9.7x

TRY Troy Resources 0.59 ▼ (11%) (25%) 115 43 112 NM

UML Unity Mining 0.009 — 0% (78%) 10 7 4 NM


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABU ABM Resources 0.33 ▼ (7%) 0% 90 10 80

AWV Anova Metals 0.041 ▲ 5% 105% 10 1 9

AZM Azumah Resources 0.030 ▼ (14%) 7% 12 4 9

BLK Blackham Resources 0.10 ▼ (27%) (44%) 11 1 11

BSR Bassari Resources 0.014 ▼ (13%) 75% 16 - 16

CHN Chalice Gold Mines 0.12 ▼ (8%) (11%) 34 44 (10)

CHZ Chesser Resources 0.17 ▲ 3% 57% 36 1 37

DCN Dacian Gold 0.35 ▲ 6% 46% 25 11 14

EXG Excelsior Gold 0.060 — 0% (13%) 27 1 26

FML Focus Minerals 0.010 ▼ (9%) (17%) 91 81 91

GCY Gascoyne Resources 0.13 — 0% (7%) 22 1 21

GMR Golden Rim Resources 0.009 ▼ (10%) (18%) 10 1 11

GOR Gold Road Resources 0.26 ▼ (12%) 158% 151 10 142

GRY Gryphon Minerals 0.09 ▼ (9%) (49%) 34 34 (1)

IDC Indochine Mining 0.016 ▼ (16%) (63%) 19 0 21

KGD Kula Gold 0.070 — 0% (33%) 13 3 12

MSR Manas Resources 0.024 ▼ (4%) (25%) 11 6 9

MUX Mungana Goldmines 0.105 ▼ (9%) 289% 17 5 12

MYG Mutiny Gold 0.037 ▼ (24%) 17% 25 3 22

OBS Orbis Gold 0.53 ▼ (23%) 112% 132 5 128

OGX Orinoco Gold 0.097 ▼ (1%) (25%) 12 1 13

PXG Phoenix Gold 0.09 ▼ (4%) (43%) 33 9 23

RED Red 5 0.083 ▼ (7%) (6%) 63 38 25

RNI Resource & Investment 0.10 ▼ (4%) 81% 45 5 60

RNS Renaissance Minerals 0.085 ▲ 15% 42% 34 2 32

SIH Sihayo Gold 0.013 ▲ 1% (56%) 13 0 9

SXG Southern Cross Goldfields 0.013 ▼ (28%) 0% 17 3 19

TAM Tanami Gold 0.016 — 0% (27%) 19 1 25

WPG WPG Resources 0.043 ▼ (7%) 48% 11 5 6


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AJM Altura Mining 0.100 ▼ (5%) (29%) 45 3 61

GXY Galaxy Resources 0.038 ▲ 23% (19%) 40 3 107

ORE Orocobre 2.74 ▼ (0%) 10% 362 26 337

PLS Pilbara Minerals Ltd. 0.049 — 0% 308% 29 1 29

RDR Reed Resources 0.030 ▼ (9%) (48%) 15 7 10


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

IGO Independence Group 4.54 ▲ 2% 46% 1,064 57 1,035 7.4x

MCR Mincor Resources 0.62 ▲ 3% 3% 116 26 94 3.0x

PAN Panoramic Resources 0.60 ▲ 3% 140% 193 64 137 2.8x

WSA Western Areas 4.34 ▼ (2%) 83% 1,008 231 996 6.9x

AVQ Axiom Mining 0.015 ▼ (17%) 0% 50 0 48 NM

CZI Cassini Resources 0.17 ▼ (6%) 240% 19 8 12 NM

LEG Legend Mining 0.009 ▲ 13% 13% 18 5 14 NM

MLM Metallica Minerals 0.062 ▼ (7%) 24% 10 1 9 NM

PIO Pioneer Resources 0.02 — 0% 42% 10 1 9 NM

POS Poseidon Nickel 0.16 ▲ 3% 111% 96 4 127 NM

SEG Segue Resources 0.012 ▼ (14%) 200% 18 1 17 NM

SGQ St George Mining 0.09 ▼ (4%) (5%) 10 1 9 NA

SIR Sirius Resources 3.10 ▲ 5% 37% 1,059 59 1,000 NM

TLM Talisman Mining 0.16 ▼ (14%) 52% 21 16 5 NM

WIN Winward Resources 0.18 ▲ 6% (10%) 11 6 5 NM


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AQR Aeon Metals 0.12 ▼ (8%) (8%) 37 5 44

CCU Cobar Consolidated 0.058 — 0% (52%) 19 6 31

DGR DGR Global 0.033 ▼ (25%) 10% 14 0 14

HRR Heron Resources 0.15 ▼ (3%) 4% 52 33 19

IBG Ironbark Zinc 0.10 ▲ 8% 72% 44 2 42

IPT Impact Minerals 0.023 — 0% (43%) 13 1 12

IVR Investigator Resources 0.024 ▼ (11%) (49%) 11 3 8

MRP MacPhersons Resources 0.12 ▲ 5% (36%) 35 7 28

RDM Red Metal 0.17 ▲ 3% 13% 30 8 22

ROL Robust Resources 0.49 — 0% 39% 95 17 81

RXL Rox Resources 0.038 ▼ (7%) 15% 32 3 30

TZN Terramin Australia 0.095 ▲ 30% 239% 125 5 174

VXR Venturex Resources 0.006 ▲ 20% (40%) 9 3 6

oz metals 20141101

Economy & Finance