oz metals 20150405

Oz Metals 24th Edition – 5th Apr 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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COPPER INVENTORIES ON A PLATEAU Base Metals & Precious Metals Fundamentals

Sources: COMEX, LME, RBA, SHFE

$50

$55

$60

$65

$70

$75

Jan-14 Apr-14 Jul-14 Oct-14 Jan-15

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Bauxite

US$/t

$A/t

$2.0

$2.3

$2.6

$2.9

$3.2

$3.5

$3.8

$4.1

0

100

200

300

400

500

600

700

Apr-14 Jul-14 Oct-14 Jan-15 Apr-15

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Copper

SHFE COMEX LME

US$/lb A$/lb

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700


Gold

A$/oz

US$/oz$15.0

$17.5

$20.0

$22.5

$25.0


Silver

A$/oz

US$/oz

$5

$6

$7

$8

$9

$10

$11

0

100

200

300

400

500

600


$/lb

Th

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Nickel

LME US$ A$

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

0

200

400

600

800

1,000

1,200


$/lb

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Zinc

SHFE LME US$ A$


DISCLAIMER



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Markets & Majors

According to the latest CPM Gold Yearbook, mine supply in

2014 reached a record 90.5Moz; “there was a large amount

of new mine capacity that came on-stream during 2013,

which was being ramped up in 2014, helping to boost mine

supply during the year. Additionally, there were new projects

that were started during 2014, which also helped to boost

mine production during the year and offset any loss in

output from existing mines.” Several major producing

countries also reached multi-year or all-time highs. Canada

achieved record gold output in 2014 (160t, +29%) and

jumped two positions up, from 7th to 5th place, surpassing

South Africa for the first time. Australia’s annual gold

production reached its highest level since 2003, rising to

284t (9.1Moz) for the full 2014 year, up 11t (353,000oz) or 4%

y/y.

Thomson Reuters - The volume of gold sold forward by

mining companies rose by 103 tonnes last year, the biggest

annual increase since 1999, an industry report showed on

Friday. That far outstrips an estimate given late last year of

42-52 tonnes, after Mexican gold and silver miner Fresnillo

said it was hedging 47 tonnes of output over five years. In

their quarterly Global Hedge Book Analysis, Société

Générale and GFMS analysts at Thomson Reuters said the

bulk of the rise in the global gold hedge book last year was

driven by Fresnillo and Russia's Polyus Gold, which

announced a major hedging deal in July. "Of the growth in

the book in 2014, the majority (85 tonnes) came from these

two companies. Together they now account for half of the

outstanding global hedging," the report said.

Thomson Reuters - Chile's state-run Codelco produced

1.672 million tonnes of copper in 2014, a 3.1% rise from a

year earlier. The company said the jump in output was

mostly due to Codelco's newest mine, Ministro Hales, which

produced 141,200 tonnes copper in 2014, up from just

33,600 tonnes in 2013 when it was in its initial ramp-up

phase. The increase more than made up for production

decreases that totaled 64,000 tonnes, at Radomiro Tomic,

Gabriela Mistral and Andina. Codelco's two oldest mines,

open-pit Chuquicamata and underground El Teniente,

increased their copper output by a combined 7,000 tonnes

last year. Codelco direct cash costs in 2014 were 7.8%

lower than a year earlier at $1.50 per pound of copper.

SNL - Barrick Gold Corp. decided to remove the US$6

billion Cerro Casale gold-copper project in Chile from its

pipeline of priority projects after receiving results of a report

conducted last year on the profitability of the operation. As a

result, the company said its budget for the project this year

has decreased significantly. Separately, Reuters reported

that Barrick Gold lost its bid to dismiss a U.S. lawsuit

accusing the gold major of hiding environmental issues at its

troubled Pascua Lama gold-copper project straddling the

Chilean-Argentinean border.

Thomson Reuters - Proposals made to the Mongolian

government by global mining giant Rio Tinto last November

to restart the long-delayed Oyu Tolgoi copper mine were the

firm's "best and final offer" and won't be changed, Rio's chief

executive said. Rio submitted the proposals to resolve some

outstanding issues, including a $127 million tax claim that

has already been cut to $30 million as well as the approval

of a $4 billion project finance package to pay for phase-two

construction.

Funding, Mergers & Acquisitions

Industry sources expressed concern that some investors in

X2 Resources may run out of patience, as the portfolio of

the private equity fund led by former Xstrata CEO Mick

Davis remains empty, Reuters wrote. X2 Resources, which

has raised US$6 billion in capital, has approached Vale SA,

Rio Tinto and BHP Billiton to acquire assets, according to

banking and industry sources. The mining giants, however,

supposedly did not want to sell in the hopes of seeing a

rebound in prices.

Dismissing recent reports, Teck Resources said March 30

that it is not in talks with Antofagasta regarding a potential

merger between the companies. Bloomberg News had

reported earlier, citing "people with knowledge of the

matter," that both companies had held early stage talks

about a possible merger deal that would create one of the

world's largest copper producers. Antofagasta also

separately confirmed that it is not in discussions about the

merger.

PanAust has received a letter from Guangdong Rising

Assets Management (“GRAM”), announcing its intention to

make an unconditional, off-market takeover offer to acquire

all of the shares (not currently held by GRAM) of PanAust at

a cash price of $1.71 per share, which values the ASX-listed

copper producer at roughly A$1.09 billion. On Monday 30

March 2015, GRAM released its Bidders Statement on the

ASX advising that it expected to dispatch the document to

PanAust shareholders on or about 13 April 2015. GRAM is a

significant shareholder in PanAust and, at the time of the

approach, held approximately 22.5% of the Company.

PanAust notes that the Takeover Offer is unsolicited and

has been made at a time when both the PanAust share

price and spot prices for copper and gold have been trading

at near 5 year lows. PanAust also notes that GRAM made a

non-binding and indicative takeover proposal in April 2014

at a higher price of A$2.30 per share, or about A$1.37 billion;

however, no formal takeover proposal at that price was ever

received by PanAust. PanAust notes the Takeover Offer is

not yet open for acceptances. PanAust said its board will


DISCLAIMER



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consider the offer and provide advice to shareholders in due

course.

Apollo Minerals has completed the acquisition of a 70%

stake in the Orpheus base metals joint venture project in

southeastern Western Australia, under a deal inked in

February. Under the deal, Apollo acquired a 70% interest in

four of Enterprise Metals’ six Fraser Range nickel project

tenements in Western Australia.

Corazon Mining said April 1 has completed the transaction

to acquire the Victory nickel-copper project located at the

Lynn Lake field in Manitoba from Victory Nickel Inc. Under

the agreement, the company issued 40 million shares to

Victory Nickel. Victory Nickel will retain a 1.5% net smelter

royalty on production from the project area, 1% of which can

be purchased by Corazon for A$1 million. Corazon is

required to spend A$3.5 million on exploration and resource

development within five years on execution of the

agreement. The Victory nickel-copper project comprises 17

million tonnes at 0.66% nickel and 0.33% copper for

112,000 tonnes of nickel and 57,000 tonnes of copper.

FMC Corp. completed the sale of its Alkali Chemicals

business to Tronox Ltd. in a deal valued at US$1.64 billion.

Galaxy Resources closed the sale of its troubled Jiangsu

lithium carbonate plant in China to Sichuan Tianqi Lithium

Industries, The West Australian reported. Under the

amended terms, the value of the deal was reduced to

US$173.2 million, from US$230 million originally.

Poseidon Nickel has now taken ownership of the Black

Swan nickel project from Norilsk Nickel with the completion

of the transaction. The company's short-term focus remains

on its Lake Johnston and Windarra projects. The Western

Australian operation comprises the Black Swan nickel

sulfide concentrator plant, the Black Swan sulfide ore open

pit mine and the Silver Swan underground mine. The

2.15mtpa processing plant was extensively upgraded and

expanded in 2006 and was put on care and maintenance in

February 2009 during the global financial crisis. Poseidon

updated the resource for the project in August 2014 to 30.7

million tonnes at 0.58% nickel for 178,700 tonnes of

contained nickel in the indicated and inferred categories.

Segue Resources Ltd and Port Exploration Pty Ltd are set

to enter into a joint venture for Segue Resources' Pardoo

nickel sulfide project in Western Australia. The two

companies have signed a binding term sheet to enter into a

joint venture agreement within 90 days, with Port

Exploration paying an initial A$50,000 fee to the company

and becoming a subsidiary or assigning its interest to an

ASX-listed company within six months. Under the

agreement, Port Exploration can earn an initial 51% interest

in the property by spending A$250,000 on exploration within

12 months, and can then increase its interest to 80% by

spending another A$250,000 on exploration within 12

months of earning the stage-one interest. If exercised,

Segue Resources will then have the right to sell its

remaining 20% interest to Port Exploration for shares in the

company or any of its listed head companies, subject to

various approvals.

Mercantile Investment Co. Ltd has launched a roughly

A$3.2 million cash takeover bid for ASX-listed Phosphate

Australia Ltd. Mercantile, which already holds a 9% stake in

Phosphate Australia, plans to buy shares between April 14

and May 14 unless it extends the offer period. Phosphate

Australia has advised its shareholders not to act on the offer

until the company can review it and make a

recommendation.

Bauxite Sector

Source: Bloomberg, SNL Metals & Mining, Terra Studio

Lithium-Tantalum Sector

Source: SNL Metals & Mining, Terra Studio

Tin Sector

Source: SNL Metals & Mining

Nickel Sector


Code Company NameClose

PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABX Australian Bauxite 0.35 ▼ (3%) 15% 44 5 40

BAU Bauxite Resources 0.088 ▲ 17% (10%) 20 25 (4)

CAY Canyon Resources 0.045 ▼ (4%) (10%) 6 1 5

MLM Metallica Minerals 0.069 ▲ 35% 25% 12 1 11

MMI Metro Mining 0.067 ▲ 14% 148% 19 8 12


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AJM Altura Mining 0.020 — 0% (69%) 9 3 9

GXY Galaxy Resources 0.033 ▲ 32% 32% 35 13 128

ORE Orocobre 2.23 ▼ (3%) (20%) 343 26 344

PLS Pilbara Minerals Ltd. 0.039 ▼ (3%) (7%) 24 2 21

RDR Reed Resources 0.040 ▲ 5% 5% 20 7 18


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

CSD Consolidated Tin Mines 0.042 ▼ (7%) 2% 12 0 11

ELT Elementos 0.008 ▲ 14% 0% 6 1 5

KAS Kasbah Resources 0.037 ▼ (3%) (31%) 17 4 11

MLX Metals X 1.27 ▲ 5% 61% 526 57 419

MOO Monto Minerals 0.001 — 0% (50%) 1 1 1

SRZ Stellar Resources 0.035 ▼ (10%) 21% 11 4 8

VMS Venture Minerals 0.026 ▲ 4% (16%) 7 7 4


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

IGO Independence Group 5.20 ▼ (7%) 17% 1,218 57 1,127 NA

MBN Mirabella Nickel 0.120 — 0% 314% 112 18 223 0.4x

MCR Mincor Resources 0.65 ▼ (5%) 11% 122 26 104 NA

PAN Panoramic Resources 0.49 ▼ (16%) 17% 157 64 99 1.3x

WSA Western Areas 3.37 ▼ (13%) (10%) 784 231 733 NA

AVQ Axiom Mining 0.165 ▲ 1400% 1000% 40 2 37 NM

CZI Cassini Resources 0.08 ▲ 4% (33%) 9 8 7 NA

DKM Duketon Mining 0.17 ▲ 13% (35%) 13 7 6 NA

LEG Legend Mining 0.008 ▲ 14% 14% 16 7 9 NM

MAT Matsa Resources 0.175 ▲ 9% 3% 25 3 25 NA

MLM Metallica Minerals 0.069 ▲ 35% 25% 12 1 11 NA

PIO Pioneer Resources 0.018 — 0% 38% 12 1 10 NA

POS Poseidon Nickel 0.12 ▼ (4%) (4%) 79 4 95 NA

SEG Segue Resources 0.006 ▲ 20% 20% 12 1 11 NA

SGQ St George Mining 0.076 ▲ 17% 21% 8 1 7 NA

SIR Sirius Resources 2.60 ▼ (10%) 2% 888 59 643 NM

TLM Talisman Mining 0.16 ▼ (6%) 3% 21 16 6 NA

WIN Winward Resources 0.35 ▼ (14%) 116% 37 6 34 NA


DISCLAIMER



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Copper Producers


Copper Developers & Explorers


Zinc & Poly-metallic Sector


Gold Producers


Gold Developers & Explorers


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)

TEV/

EBITDA

ABY Aditya Birla Minerals 0.19 — 0% (5%) 58 137 (46) NA

HGO Hillgrove Resources 0.36 ▼ (4%) (21%) 52 9 63 1.3x

KBL KBL Mining 0.021 — 0% (30%) 10 7 33 NA

MWE Mawson West 0.040 ▼ (11%) (20%) 16 21 67 NM

OZL OZ Minerals 3.84 ▼ (0%) 10% 1,165 219 947 2.7x

PNA PanAust 1.74 ▲ 39% 23% 1,062 74 1,289 NM

SFR Sandfire Resources 4.53 ▲ 6% (0%) 707 58 791 NA

SRQ Straits Resources 0.004 — 0% (20%) 5 13 162 NA

TGS Tiger Resources 0.053 ▼ (5%) (59%) 61 80 275 5.8x

985 CST Mining 0.048 — 0% 9% 1,301 136 207 0.5x

1208 MMG 2.62 ▲ 6% 9% 13,859 251 85,541 14.7x

3993 China Molybdenum 6.51 ▲ 31% 45% 76,447 9,326 78,009 20.3x


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AOH Altona Mining 0.110 ▲ 10% (54%) 59 129 (70)

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

AVB Avanco Resources 0.074 ▲ 4% (3%) 123 20 103

AVI Avalon Minerals 0.027 ▼ (10%) 35% 5 1 3

AZS Azure Minerals 0.014 ▲ 8% (42%) 14 1 0

CDU CuDeco (suspended) 1.41 — 0% (28%) 351 7 406

CVV Caravel Minerals 0.007 ▼ (13%) (13%) 5 1 5

ENR Encounter Resources 0.11 ▲ 10% (15%) 15 4 13

ERM Emmerson Resources 0.028 ▲ 4% (10%) 11 2 8

FND Finders Resources 0.16 ▲ 7% 3% 102 48 103

GCR Golden Cross Resources 0.061 ▲ 11% (13%) 6 2 5

GPR Geopacific Resources 0.036 ▼ (8%) (31%) 14 4 10

HAV Havilah Resources 0.25 ▲ 2% 79% 39 3 36

HCH Hot Chili 0.12 ▼ (4%) (28%) 40 6 46

HMX Hammer Metals 0.075 ▼ (6%) (9%) 8 1 7

IAU Intrepid Mines 0.11 ▲ 5% (19%) 41 74 (33)

KDR Kidman Resources 0.040 ▼ (7%) (40%) 5 3 4

KGL KGL Resources 0.16 ▼ (3%) (31%) 22 9 13

MEP Minotaur Exploration 0.10 — 0% (31%) 18 5 12

MNC Metminco 0.005 — 0% (38%) 10 1 9

MTH Mithril Resources 0.005 ▼ (29%) (29%) 2 2 1

PEX Peel Mining 0.080 ▲ 19% 16% 11 3 9

RDM Red Metal 0.045 ▲ 5% (44%) 8 2 3

RER Regal Resources 0.045 — 0% (2%) 10 2 7

RTG RTG Mining 0.550 ▲ 4% (5%) 71 2 68

RXM Rex Minerals 0.085 ▼ (3%) (23%) 19 3 11

SMD Syndicated Metals 0.019 ▼ (5%) (41%) 5 2 4

SRI Sipa Resources 0.079 ▲ 4% 114% 49 4 48

SUH Southern Hemisphere 0.012 ▲ 20% (72%) 3 2 2

THX Thundelarra Resources 0.068 — 0% (38%) 22 7 14

XAM Xanadu Mines 0.100 ▲ 11% 0% 37 8 37


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AQR Aeon Metals 0.070 ▼ (15%) (30%) 21 5 33

DGR DGR Global 0.044 — 0% 38% 18 0 20

HRR Heron Resources 0.12 ▼ (11%) (4%) 43 28 19

IBG Ironbark Zinc 0.083 ▼ (8%) 4% 37 3 34

IPT Impact Minerals 0.013 ▲ 8% (46%) 7 1 5

IVR Investigator Resources 0.012 ▲ 9% (25%) 6 3 1

MRP MacPhersons Resources 0.125 ▲ 9% 0% 39 5 35

PNX Phoenix Copper 0.017 — 0% (43%) 6 3 3

RDM Red Metal 0.045 ▲ 5% (44%) 8 8 (0)

RVR Red River Resources 0.14 ▼ (10%) 27% 25 4 21

RXL Rox Resources 0.030 ▼ (3%) 7% 26 3 23

TZN Terramin Australia 0.130 ▲ 4% 18% 197 1 196

VXR Venturex Resources 0.004 — 0% (20%) 6 1 5


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

AGD Austral Gold 0.09 ▼ (25%) (31%) 43 NA 35 NA

ALK Alkane Resources 0.31 ▲ 2% 39% 126 16 107 NA

AMI Aurelia Metals 0.25 ▼ (4%) 4% 97 22 198 NA

BDR Beadell Resources 0.26 ▼ (9%) 13% 204 13 308 4.8x

BOK Black Oak Minerals 0.38 ▼ (3%) 41% 17 11 31 NA

DRM Doray Minerals 0.46 ▼ (1%) (4%) 110 16 109 NA

EVN Evolution Mining 0.88 ▲ 3% 36% 627 32 757 3.7x

IGO Independence Group 5.20 ▼ (7%) 17% 1,218 57 1,127 NA

KCN Kingsgate Consolidated 0.71 ▲ 4% 8% 159 54 242 NA

KRM Kingsrose Mining 0.22 ▼ (7%) (16%) 77 7 88 NA

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

MIZ Minera Gold 0.002 ▲ 33% (33%) 6 0 11 NA

MLX Metals X 1.27 ▲ 5% 61% 526 57 419 NA

MML Medusa Mining 0.96 — 0% 48% 199 13 192 NA

MOY Millennium Minerals 0.028 ▼ (13%) (24%) 6 2 42 NM

NCM Newcrest Mining 13.78 ▲ 1% 27% 10,563 141 14,980 NA

NGF Norton Gold Fields 0.20 — 0% 60% 186 19 314 4.8x

NST Northern Star Resources 2.35 ▼ (3%) 58% 1,392 82 1,364 NA

OGC OceanaGold Corp. 2.54 ▲ 0% 26% 771 NA 855 2.8x

PGI PanTerra Gold 0.190 ▲ 36% 6% 16 3 80 NM

PRU Perseus Mining 0.31 ▼ (3%) 17% 161 37 126 2.2x

RMS Ramelius Resources 0.115 ▲ 5% 125% 54 12 37 NA

RRL Regis Resources 1.29 ▼ (6%) (33%) 642 7 652 NA

RSG Resolute Mining 0.29 ▼ (6%) 9% 186 19 217 NA

SAR Saracen Mineral Holdings 0.44 ▼ (1%) 71% 345 36 325 NA

SBM St Barbara 0.22 ▼ (2%) 110% 109 79 432 NA

SLR Silver Lake Resources 0.19 ▼ (5%) (3%) 96 24 102 NA

TBR Tribune Resources 3.35 ▲ 2% 26% 168 11 182 10.6x

TRY Troy Resources 0.48 ▼ (8%) 4% 94 43 134 NA

UML Unity Mining 0.010 ▲ 25% 43% 11 7 (1) NA


PriceWeek Δ YTD Δ

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AYC A1 Consolidated 0.035 ▲ 9% (13%) 10 0 9

ABU ABM Resources 0.23 — 0% (20%) 79 11 68

AWV Anova Metals 0.045 ▼ (2%) 67% 13 1 12

AZM Azumah Resources 0.020 ▼ (5%) 0% 8 4 7

BLK Blackham Resources 0.150 ▼ (3%) 194% 27 3 24

BSR Bassari Resources 0.011 ▼ (8%) (8%) 13 0 13

CHN Chalice Gold Mines 0.13 ▲ 4% 19% 35 43 (7)

CHZ Chesser Resources 0.034 — 0% (6%) 8 1 3

DCN Dacian Gold 0.47 ▼ (4%) 68% 45 8 38

EXC Exterra Resources 0.012 ▼ (8%) (8%) 2 1 2

EXG Excelsior Gold 0.095 ▲ 2% 56% 44 2 44

FML Focus Minerals 0.006 ▼ (8%) (14%) 55 9 46

GCY Gascoyne Resources 0.091 ▲ 1% 28% 16 1 16

GMR Golden Rim Resources 0.010 ▲ 25% 100% 14 1 14

GOR Gold Road Resources 0.34 ▼ (7%) 39% 202 21 181

GRY Gryphon Minerals 0.067 ▲ 12% 5% 27 34 3

IDC Indochine Mining 0.006 — 0% (50%) 8 0 10

KGD Kula Gold 0.045 ▲ 7% 2% 12 3 9

MSR Manas Resources 0.017 ▲ 6% 21% 9 0 8

MUX Mungana Goldmines 0.120 ▼ (8%) (4%) 29 5 34

OGX Orinoco Gold 0.082 ▼ (2%) 39% 13 1 11

PNR Pacific Niugini 0.070 ▲ 6% 40% 27 1 26

PXG Phoenix Gold 0.090 ▼ (2%) (8%) 38 6 32

RED Red 5 0.105 ▼ (5%) 14% 80 38 62

RNI Resource & Investment 0.078 ▲ 7% 4% 39 5 56

RNS Renaissance Minerals 0.041 ▼ (9%) (37%) 16 4 12

SAU Southern Gold 0.013 ▲ 8% 63% 7 1 6

SIH Sihayo Gold 0.011 — 0% 38% 12 0 7

TAM Tanami Gold 0.027 ▼ (7%) 93% 32 1 42

WAF West African Resources 0.070 ▼ (7%) (30%) 19 3 19

WPG WPG Resources 0.037 ▲ 3% (3%) 10 3 7

oz metals 20150405

Economy & Finance