oz metals 20150222

Oz Metals 19th Edition – 22nd Feb 2015

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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MORE AUSTRALIAN GOLD M&A EXPECTED Base Metals & Precious Metals Fundamentals

Sources: COMEX, LME, RBA, SHFE

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Gold

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$15.0

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Silver

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DISCLAIMER



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Markets & Majors

The London Metal Exchange (LME) implemented its load-in,

load-out (LILO) rule – aimed at reducing the long queues

outside its warehouses.

Mining Journal - The mining industry has fully entered a new

age of more thoughtful and socially conscious resource

development. From both a legal and a practical perspective,

companies involved in the mining industry have witnessed a

shift in how they conduct business in places where

indigenous populations exist.

Thomson Reuters - Miners who can't get financing for new

projects from banks or traditional equity investors because

metals prices have collapsed are turning to an alternative

source: the engineering and construction companies, many

from China and South Korea, who actually build their

mines. Several North American and Australian miners are

in talks with engineering, procurement and construction

(EPC) companies to take equity stakes or bring along

banking partners to provide debt funding in projects in return

for the EPC group winning a contract. China's NFC and

South Korea's POSCO Engineering & Construction are

among the companies pursuing these deals as they look to

make up for business lost because of slowing infrastructure

growth at home.

SMM - Nickel ore inventories at China’s five major ports fell

145,000 tonnes to 11.71 million tonnes last week, down for

four months in a row, Shanghai Metals Market data show.

SMM – Average utilization rate at 46 major domestic zinc

smelters was 84.73% in January, down 1.58 percentage

points month-on-month, Shanghai Metals Market’s survey

finds. Unit maintenance at some smelters was the major

reason behind the slight decline in rate.

Funding, Mergers & Acquisitions

mining.com - Over $20 billion in global gold deals were completed or pending last year, the highest value since 2011 according to Bloomberg, as the world’s largest miners of the precious metal continue to pull their portfolios to pieces as a way to weather low prices and an ongoing downturn. Far from winding down, this trend is set to pick up, say analysts, especially after the latest announcements by top miners such as Barrick Gold (TSX:ABX) and Newcrest (ASX:NCM) — to put mines up for sale.

Northern Star Resources (ASX:NST) is a good example of how good it is to fish in troubled waters. Since 2013, when it began acquiring $166 million worth of mines from Barrick and Newmont (NYSE:NEM), the Australian gold producer has increased its market value more than threefold, to US$940 million.

“It’s a pretty simple strategy,” Bill Beament, chief executive officer of the company told Bloomberg. “That sweet spot in the middle is companies our size. We are the Goldilocks gold producer.”

It’s precisely Down Under where experts predict the next round of mergers and acquisitions will take place. Australian gold mines, analysts argue, have largely become more profitable during the past year on the back of the falling local dollar and a trend for miners to axe costs.

mining.com - Chile-owned Codelco is said to be mulling the acquisition of Anglo American’s (LON:AAL) mines in the country, as the London-based giant goes through a wide ranging review of its portfolio aimed at trimming the less-profitable parts. The company would first sell its Mantos Blancos and Mantoverde mines, as well as its 50.1% stakes in El Soldado mine, and the Chagres smelter. Anglo plans to keep its larger copper operations, Los Bronces and Collahuasi.

Mantoverde mine, Chile

Bauxite Sector

Source: Bloomberg, SNL, Terra Studio

Code Company NameClose

PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABX Australian Bauxite 0.285 ▼ (3%) (7%) 36 5 31

BAU Bauxite Resources 0.090 ▲ 5% (8%) 21 25 (4)

MLM Metallica Minerals 0.050 — 0% (9%) 8 1 7

MMI Metro Mining 0.040 ▲ 5% 48% 12 8 4


DISCLAIMER



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Lithium-Tantalum Sector

Source: SNL, Terra Studio

Tin Sector

Source: SNL

Nickel Sector

Source: SNL

Copper Developers & Explorers


Copper Producers

Source: SNL

Gold Producers

Source: SNL

Gold Developers & Explorers



PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AJM Altura Mining 0.030 ▼ (9%) (54%) 14 3 29

GXY Galaxy Resources 0.025 — 0% 0% 27 3 93

ORE Orocobre 2.54 ▼ (2%) (9%) 374 26 350

PLS Pilbara Minerals Ltd. 0.039 ▼ (11%) (7%) 24 2 22

RDR Reed Resources 0.032 ▼ (9%) (16%) 16 7 NA


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

CSD Consolidated Tin Mines 0.047 ▼ (4%) 15% 13 0 14

ELT Elementos 0.006 — 0% (25%) 5 1 4

KAS Kasbah Resources 0.044 — 0% (19%) 20 4 14

MLX Metals X 1.28 ▼ (5%) 63% 532 57 426

MOO Monto Minerals 0.002 — 0% 0% 3 1 2

SRZ Stellar Resources 0.023 ▼ (4%) (21%) 7 4 NA

VMS Venture Minerals 0.034 ▼ (6%) 10% 10 7 3


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

IGO Independence Group 5.33 ▼ (1%) 20% 1,249 57 1,220 8.7x

MBN Mirabella Nickel 0.045 ▲ 55% 55% 42 31 81 NA

MCR Mincor Resources 0.67 ▼ (9%) 14% 125 26 107 NA

PAN Panoramic Resources 0.53 ▼ (5%) 25% 169 64 113 2.3x

WSA Western Areas 4.13 ▼ (5%) 10% 961 231 909 NA

AVQ Axiom Mining 0.012 — 0% (20%) 43 2 41 NM

CZI Cassini Resources 0.10 ▼ (1%) (19%) 11 8 4 NM

DKM Duketon Mining 0.18 ▲ 13% (31%) 14 7 7 NA

LEG Legend Mining 0.007 ▼ (13%) 0% 14 7 7 NA

MAT Matsa Resources 0.145 ▼ (3%) (15%) 21 3 18 NM

MLM Metallica Minerals 0.050 — 0% (9%) 8 1 7 NA

PIO Pioneer Resources 0.016 ▼ (24%) 23% 10 1 9 NM

POS Poseidon Nickel 0.12 ▼ (8%) 0% 82 4 113 NM

SEG Segue Resources 0.006 ▼ (14%) 20% 12 1 11 NM

SGQ St George Mining 0.043 ▼ (10%) (32%) 5 1 3 NA

SIR Sirius Resources 3.12 ▼ (2%) 22% 1,066 59 1,007 NM

TLM Talisman Mining 0.16 ▼ (3%) 3% 21 16 5 NM

WIN Winward Resources 0.17 ▼ (11%) 6% 15 6 9 NM


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ARE Argonaut Resources 0.010 — 0% (38%) 4 1 3

AVB Avanco Resources 0.070 — 0% (8%) 116 20 97

AVI Avalon Minerals 0.025 ▼ (11%) 25% 4 1 NA

AZS Azure Minerals 0.013 ▼ (13%) (46%) 11 1 10

CDU CuDeco 1.41 — 0% (28%) 351 7 406

CVV Caravel Minerals 0.009 ▲ 13% 13% 7 1 NA

ENR Encounter Resources 0.11 — 0% (15%) 15 4 11

ERM Emmerson Resources 0.033 — 0% 6% 12 3 10

FND Finders Resources 0.14 ▲ 4% (10%) 89 48 41

GCR Golden Cross Resources 0.071 ▼ (7%) 1% 7 1 6

GPR Geopacific Resources 0.040 — 0% (23%) 15 3 15

HAV Havilah Resources 0.200 ▲ 38% 43% 31 6 25

HCH Hot Chili 0.14 ▲ 17% (13%) 49 6 55

HMX Hammer Metals 0.084 ▲ 1% 2% 8 1 7

IAU Intrepid Mines 0.13 ▲ 4% (7%) 46 74 (28)

KDR Kidman Resources 0.065 ▲ 8% (3%) 8 3 5

KGL KGL Resources 0.15 ▼ (3%) (36%) 21 10 11

MEP Minotaur Exploration 0.12 ▼ (12%) (21%) 21 7 14

MNC Metminco 0.006 ▼ (25%) (25%) 11 3 8

MTH Mithril Resources 0.006 ▼ (25%) (14%) 3 1 1

PEX Peel Mining 0.060 ▼ (2%) (13%) 8 2 6

RDM Red Metal 0.05 ▼ (12%) (37%) 9 2 7

RER Regal Resources 0.046 — 0% 0% 10 2 7

RTG RTG Mining 0.660 ▼ (7%) 14% 85 3 82

RXM Rex Minerals 0.092 ▼ (4%) (16%) 20 14 6

SMD Syndicated Metals 0.025 — 0% (22%) 7 1 6

SRI Sipa Resources 0.068 ▲ 74% 84% 41 4 37

SUH Southern Hemisphere 0.040 — 0% (7%) 10 2 7

THX Thundelarra Resources 0.082 ▼ (10%) (25%) 26 7 19

XAM Xanadu Mines 0.085 — 0% (15%) 31 4 32


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

ABY Aditya Birla Minerals 0.18 ▼ (3%) (8%) 56 137 (48) NA

AOH Altona Mining 0.10 ▲ 1% (59%) 53 129 (76) 1.1x

HGO Hillgrove Resources 0.33 ▼ (7%) (27%) 49 16 63 1.5x

KBL KBL Mining 0.020 ▼ (5%) (33%) 10 7 25 1.6x

MWE Mawson West 0.035 ▲ 17% (30%) 7 48 36 NM

OZL OZ Minerals 3.75 ▼ (2%) 8% 1,138 219 920 2.6x

PNA PanAust 1.26 ▼ (9%) (11%) 755 74 975 NM

SFR Sandfire Resources 4.44 ▼ (2%) (2%) 695 58 798 3.6x

SRQ Straits Resources 0.005 ▲ 25% 0% 6 13 129 17.5x

TGS Tiger Resources 0.07 ▼ (3%) (45%) 81 80 227 NA

985 CST Mining 0.044 ▲ 2% 0% 1,192 136 98 0.2x

1208 MMG 2.16 ▼ (2%) (10%) 11,426 137 24,359 4.0x

3993 China Molybdenum 4.80 ▲ 2% 7% 59,347 1,883 63,393 NA


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

AGD Austral Gold 0.13 — 0% 0% 62 NA 130 9.7x

ALK Alkane Resources 0.36 — 0% 64% 149 16 134 19.8x

AMI Aurelia Metals 0.26 — 0% 6% 99 22 184 NM

BDR Beadell Resources 0.32 — 0% 40% 252 10 314 NA

DRM Doray Minerals 0.48 ▼ (1%) (1%) 111 16 111 3.4x

EVN Evolution Mining 0.91 ▼ (8%) 40% 647 32 777 3.8x

IGO Independence Group 5.33 ▼ (1%) 20% 1,249 57 1,220 8.7x

KCN Kingsgate Consolidated 0.79 — 0% 20% 177 54 277 NM

KRM Kingsrose Mining 0.26 ▼ (2%) 2% 93 7 99 NM

LSA Lachlan Star 0.024 — 0% 20% 4 2 22 NA

MIZ Minera Gold 0.002 ▼ (33%) (33%) 6 0 10 NA

MLX Metals X 1.28 ▼ (5%) 63% 532 57 426 NA

MML Medusa Mining 0.85 ▼ (3%) 31% 177 13 172 2.8x

MOY Millennium Minerals 0.036 ▼ (10%) (3%) 8 2 46 NA

NCM Newcrest Mining 13.93 ▲ 0% 28% 10,676 141 15,093 NA

NGF Norton Gold Fields 0.19 — 0% 52% 177 38 278 NA

NST Northern Star Resources 2.07 ▲ 5% 39% 1,226 82 1,198 5.9x

OGC OceanaGold Corp. 2.50 ▼ (2%) 24% 754 NA 837 2.8x

PGI PanTerra Gold 0.185 ▲ 12% 3% 16 5 89 NA

PRU Perseus Mining 0.36 ▼ (8%) 37% 187 37 153 2.7x

RMS Ramelius Resources 0.110 ▼ (8%) 116% 52 12 34 NA

RRL Regis Resources 1.92 ▼ (4%) (1%) 960 7 993 NM

RSG Resolute Mining 0.36 ▼ (5%) 34% 228 19 259 NA

SAR Saracen Mineral Holdings 0.40 ▼ (4%) 57% 317 36 295 7.1x

SBM St Barbara 0.22 ▼ (2%) 105% 106 79 367 NM

SLR Silver Lake Resources 0.21 — 0% 8% 106 24 95 NM

TBR Tribune Resources 3.00 — 0% 13% 150 11 165 9.6x

TRY Troy Resources 0.58 ▼ (2%) 25% 112 43 109 NM

UML Unity Mining 0.009 ▼ (10%) 29% 10 7 NA NA


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AYC A1 Consolidated 0.034 ▼ (6%) (15%) 9 0 9

ABU ABM Resources 0.24 ▼ (14%) (17%) 67 11 56

AWV Anova Metals 0.055 ▲ 15% 104% 16 1 15

AZM Azumah Resources 0.031 ▲ 3% 55% 12 4 10

BLK Blackham Resources 0.105 ▲ 15% 106% 19 3 16

BOK Black Oak Minerals 0.37 ▲ 16% 37% 16 11 30

BSR Bassari Resources 0.014 ▼ (13%) 17% 17 - 16

CHN Chalice Gold Mines 0.13 ▼ (4%) 24% 37 43 (6)

CHZ Chesser Resources 0.03 ▼ (3%) (11%) 7 1 8

DCN Dacian Gold 0.40 ▲ 13% 43% 38 8 28

EXC Exterra Resources 0.010 — 0% (23%) 2 1 2

EXG Excelsior Gold 0.090 ▲ 7% 48% 42 2 41

FML Focus Minerals 0.009 ▼ (5%) 29% 82 81 82

GCY Gascoyne Resources 0.100 — 0% 41% 17 1 16

GMR Golden Rim Resources 0.008 ▼ (11%) 60% 10 1 11

GOR Gold Road Resources 0.38 ▲ 7% 53% 223 21 202

GRY Gryphon Minerals 0.075 ▲ 9% 17% 30 34 NA

IDC Indochine Mining 0.009 ▼ (10%) (25%) 12 0 14

KGD Kula Gold 0.065 ▲ 48% 48% 17 3 17

MSR Manas Resources 0.016 ▲ 7% 14% 7 6 5

MUX Mungana Goldmines 0.10 — 0% (20%) 24 5 29

MYG Mutiny Gold 0.046 — 0% 5% 32 3 29

OBS Orbis Gold 0.71 ▼ (0%) 26% 176 5 171

OGX Orinoco Gold 0.066 ▼ (8%) 12% 9 1 8

PNR Pacific Niugini 0.064 ▲ 16% 28% 25 1 24

PXG Phoenix Gold 0.096 ▲ 1% (2%) 40 6 34

RED Red 5 0.103 ▼ (2%) 11% 78 38 39

RNI Resource & Investment 0.065 ▼ (4%) (13%) 33 5 48

RNS Renaissance Minerals 0.059 ▼ (2%) (9%) 24 4 20

SAU Southern Gold 0.012 ▼ (14%) 50% 5 1 4

SIH Sihayo Gold 0.009 — 0% 13% 10 0 6

TAM Tanami Gold 0.016 ▼ (11%) 14% 19 1 29

WAF West African Resources 0.090 ▲ 13% (10%) 24 3 24

WPG WPG Resources 0.045 ▼ (2%) 18% 12 3 8


DISCLAIMER



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Zinc & Poly-metallic Sector

Source: SNL

For further information, please contact:

J-François Bertincourt

m +61 406 998 779

[email protected]

au.linkedin.com/in/jfbertincourt


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AQR Aeon Metals 0.085 ▼ (6%) (15%) 26 5 33

DGR DGR Global 0.039 ▼ (9%) 22% 16 0 17

HRR Heron Resources 0.15 ▲ 3% 20% 54 28 29

IBG Ironbark Zinc 0.098 ▼ (1%) 23% 43 3 41

IPT Impact Minerals 0.020 ▲ 5% (17%) 11 1 9

IVR Investigator Resources 0.014 ▲ 17% (13%) 6 3 2

MRP MacPhersons Resources 0.150 ▲ 15% 20% 47 5 42

PNX Phoenix Copper 0.020 ▲ 18% (33%) 7 3 4

RDM Red Metal 0.051 ▼ (12%) (37%) 9 8 1

RVR Red River Resources 0.16 ▼ (6%) 41% 27 4 24

RXL Rox Resources 0.024 ▼ (11%) (14%) 20 3 NA

TZN Terramin Australia 0.135 — 0% 23% 205 1 204

VXR Venturex Resources 0.005 ▲ 25% 0% 8 1 7

oz metals 20150222

Economy & Finance