panaust limited: way ahead · panaust limited: way ahead panaust managing director dr fred hess...
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PanAust Limited
Employees year-end 2016:Laos – 3,249Thailand – 4Australia – 52Papua New Guinea – 100
Successful mid-tier copper and gold producer
Brisbane-headquartered
Phu Kham Copper-GoldOperation
Ban HouayxaiGold-SilverOperation
GRAM
Frieda River Copper-Gold Project
What makes us stand out?
Committed to living our Values
Running a successful business
is our priority
Strong leadership Australian-managed Chinese-owned
We punch above our weight – up to
the challenge
Local communities are our strongest
supporters
What we have achieved for the Lao people
Empowering womenAccess to improved health care
Contributions to the Lao economy
Localisation
Education
Supporting local businesses
Our internal capacity
Our team
200+ years of combined experience
Average 6.4 years with PanAust
Experience operating in copper, gold, nickel, silver, iron ore and oil markets
Experience operating in Australia, Argentina, Laos, New Zealand, Papua New Guinea, Thailand, Dominican Republic, Chile, Vietnam, Myanmar, United States, Cambodia, China, India, Canada, Turkey, and the United Kingdom, Singapore
We do not outsource decision-making and accountability. We are not afraid to self-perform.We are in control of our destiny.
Our structureDelivering cash
today
Administrative
Technical
Operational
Human Resources
Risk
Govt and community
Legal
Finance
Delivering cash tomorrow
Supportive environment
Clear responsibilities
A team game
One goal kicker
Team assists
Collective ownership
Supply/logistics
Exploration
Geology
Environment
Contractor Management
Ope
ratio
ns S
uppo
rt
Cor
pora
te S
ervi
ces
Tech
nica
l Ser
vice
s
In-c
ount
ry O
pera
tions
0
2
4
6
8
10
12
14
16
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Inju
ries
Fatalities Lost Time Injuries
Our safety journeyTake 5Job Safety ObservationsINX (InControl) introduced
Cardinal Rules
Deep Dives
Visible Safety LeadershipPhu Kham FM
Five Safe BehavioursPlanned Task ObservationsFatigue Committee
5,800 hours
6,000 hours
6,200 hours
6,400 hours
6,600 hours
6,800 hours
7,000 hours
7,200 hours
7,400 hours
7,600 hours
7,800 hours
75%
80%
85%
90%
95%
100%
Equivalent Yearly Trucks Hours Availability (%) UoA (%)
Maximising 777D fleet utilisation
Operator availability
Hot seatingtrucks
Improved crew change Reduced blast
event frequency
Hot seatingfuel-bay and dedicated
road services teamLoading unit availability
Split shifting
Haul truck valet return
service
Equivalent annual truck hoursAv
aila
bilit
y
Utilisation %
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
0
500
1,000
1,500
2,000
2,500
3,000
Phu Kham production performance
Mill throughput rate (dtph)
Copper recovery (%)
Commissioning April 2008
Conversion of rougherconditioning cell to
flotation cell
Jameson cellinstalled
Installation of 10th rougher flotation cell
Commissioning of Ball Mill 2circuit and installation of five
additional rougher flotation cells
Commissioning of Increased Recovery Project
Completion of increasedcrusher throughput project
Start of process optimisationprojects (flotation automation,
reagent scheme, cleaner circuitdebottlenecking)
Copper recovery
Mill
thro
ughp
ut
12Mt annualised throughput rate
18Mt annualisedthroughput rate
19Mt annualised throughput rate
Haulage cost reductions
0
20
40
60
80
100
120
2010 2011 2012 2013 2014 2015 2016F
USD
/wm
t Payload improvements Scania fleet introduced Gradients <12 per cent
Payload improvements Introduced Vietnam
route PBM employed own
drivers Back loading improved
Payload improvements
Increased volume on Vietnam route
ADB9 road sealed
Payload improvements Owner haulage in Laos and
Linfox contracted in Thailand/Vietnam
Increased volume on Vietnam route
Back loading fully optimised
Cents per km maintenance agreement
Payload increases
20.0
22.0
24.0
26.0
28.0
30.0
32.0
34.0
2010 2011 2012 2013 2014 2015 2016F
wm
tper
truc
k
Concentrate Payload (wmt)
Improvements to road gradients
Load limit 44t discovered –increase of 3t per truck
Negotiated increase of load limit to 49.6t with Government of Laos (GoL)
Higher limit through Vietnam with increased volsvs Thailand
Costs are reduced by US$0.4 million with every one tonne increase in payload
Cost performance
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
$3.50
Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17
Gol
d U
S$/
oz
Cop
per U
S$/
lb
Gold AISC Copper AISC Copper Price Gold Price
The benefits of a product mix
Lowest point in the copper price cycle when the price dipped to $2.14/lb, we still achieved a 26 per cent margin