Oz Metals 20141123

Oz Metals 23rd 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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“SAVE OUR SWISS GOLD” Base Metals & Precious Metals Fundamentals

Sources: Metal Prices, RBA, Terra Studio

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Bauxite

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$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

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Copper

SHFE COMEX LME

US$ A$

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600


Gold

A$

US$

$5.50

$6.50

$7.50

$8.50

$9.50

$10.50

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Nickel

LME US$ A$

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$11

$12

$13

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Tin

Inventory

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A$

$0.80

$0.85

$0.90

$0.95

$1.00

$1.05

$1.10

$1.15

$1.20

$1.25

0

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800

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1,400

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Zinc

SHFE LME

US$ A$


DISCLAIMER



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Markets & Majors

Australia and China entered into a free trade agreement Nov. 17, removing recent restrictions imposed by Beijing on coal imports from Australia, while hindering the U.S. and other global exporters with an eye on the Chinese market.

A fresh survey from the New South Wales Minerals Council determined that 22 mining firms operating in the Australian state spent over A$13.6 billion during fiscal 2014, Australian Mining reported.

The Western Australian mining sector will lose 20% of workers by 2020, bringing the total workforce in the Australian state to about 87,000, Australian Mining reported.

Thomson Reuters - China's metals industry is grappling with tough credit conditions that are likely to persist and spark consolidation after a portside financing scandal roiled the market, said an executive at one of the world's biggest commodity traders. Simon Collins, head of metals and minerals at Trafigura, said that miners, smelters and fabricators were facing a harder time getting credit since the Qingdao scandal broke in June. Chinese authorities launched an investigation into whether a private metals trading firm had used fake warehouse receipts at Qingdao, the world's seventh-busiest port, to obtain multiple loans against a single metal cargo. More than $1 billion in claims are now being pursued. Banks have tightened risk controls, curbing access to credit and squeezing metals trade.

Thomson Reuters - Codelco has offered a slightly higher premium of about 4 ¢/lb to its US customers for 2015 term shipments of the metal, three traders have told Reuters. That premium would be on a CIF basis delivered to Panama City port in Florida, the traders said, and equates to about $88/t. Market participants had expected producers to ask for a slight increase in the US premium, which fabricators pay for physical delivery on top of the benchmark COMEX futures price, but the precise terms were not known. Fabricators are pushing for premiums to remain unchanged due to sluggish business conditions and the slowdown in China, where Codelco has reduced its premiums.

Thomson Reuters - Freeport-McMoRan expects repairs to its sole US copper smelter, which was shuttered last week after a fire, to last into December. Freeport, the largest U.S. miner by market value and revenue, is still evaluating exactly how long the smelter shutdown will last as it investigates the cause of the fire. Freeport closed the smelter near Miami, Arizona, part of the company's mining operations some 90 miles east of Phoenix, after the fire broke out when molten copper breached a processing vessel and flowed onto the ground. Freeport is considering sending concentrates to other smelters while repairs are underway. The company's other smelter, Atlantic Copper, is in Spain. A prolonged shutdown would raise concerns about supplies in the US market of refined copper as Rio Tinto’s big smelter in Utah struggles with low ore grades.

Latin American copper giant Southern Copper Corp. is delaying two of its developments in Peru as it works to cut costs at one project and reviews the economic viability of the other, Business News Americas reported Nov. 19. The US$157 million expansion of the Cuajone copper mine is on

the back burner while Southern Copper works to switch the mine from rail transport to a conveyor and crusher method as a means of lowering costs. The Phoenix-based miner is also reviewing the viability of the US$1.5 billion Los Chancas copper-molybdenum project due to its lack of infrastructure.

SNL & Thomson Reuters - On 30th November, Switzerland

is set to vote on a proposal that could force the Swiss National Bank to increase its gold holdings to at least 20% of its total assets. Presently, the bank's gold reserves amount to 1,040 tonnes, or some 8% of the total balance sheet, according to the bank. The initiative, titled “Save our Swiss Gold” and campaigned for by the Swiss People's Party, also seeks all physical gold reserves to be stored in the country and prohibit the bank from selling any gold reserves. Some analysts indicated that a “yes” could have dramatic impact on the gold market for at least the next five years as the Swiss will have to buy a lot of gold. More than 50% need to vote in favour for the proposal to succeed. The proposal has set gold and foreign exchange markets on edge and drawn fire from the SNB itself, which has bristled at what it says would curb its ability to set monetary policy.

Thomson Reuters - Ukraine slashed its gold reserves by

more than a third in October, data from the International Monetary Fund showed, as the near-bankrupt country reels from fighting a pro-Russian separatist movement in the east. The reserves data from IMF also showed Russia raised its gold holdings for a seventh straight month in the same period - the country's longest such buying spree in more than a year. Ukraine ended last month with 26 tonnes of gold, down by 14 tonnes from September, while Russia added another 18.9 tonnes, taking its total to 1,168 tonnes - still the fifth biggest holding by a central bank.

Glencore's plans to develop the Aurukun bauxite project in Cape York, Queensland, hit a stumbling block after traditional owners of the bauxite lode at Aurukun submitted an Indigenous Land Use Agreement with the federal tribunal, Australian Mining reported.

French President François Hollande inaugurated the new US$7 billion Koniambo nickel project in New Caledonia. Koniambo is a joint venture between Glencore and Société Minière du Sud Pacifique.

The International Lead and Zinc Study Group said small Chinese zinc producers could hold the key to supplying the world's lost zinc capacity over the next three to four years as 900,000 tonnes of mine supply shuts down in the 2015-16 period, Metal Bulletin reported.

BHP Billiton's Nickel West business could be shut down by 2019 after the mining heavyweight signaled it would not pump any more funds into the troubled operation, according to a Nov. 15 report by The West Australian. The date coincides with the expiry of major off-take and supply contracts, as well as the life of the operation's nickel mines and smelting and refining operations, sources told the publication. BHP Billiton took Nickel West off the sale block earlier in November due to a lack of acceptable offers for the operation. BHP Billiton also revealed that it had halted the development of the Venus project, one of the deposits within the Leinster nickel mine that forms part of the Nickel West operation, and cut 90 jobs. The aging Kalgoorlie


DISCLAIMER



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smelter is likely to be the determining factor in how long Nickel West remains in operation, according to The West Australian, with sources saying it will need a major rebuild in

the next five years at a multimillion-dollar cost to BHP Billiton.

Deals, Funding, Mergers & Acquisitions

SNL - Freeport-McMoRan Inc. completed the sale of its

previously announced US$3.0 billion of senior notes. The company plans to use the net proceeds from the offering to pay down outstanding debt.

SNL - Glencore is the only remaining bidder considering

acquisition of Doe Run Peru's assets, which are in the final stage of auction, Metal Bulletin reported. According to the report, Trafigura Beheer BV, which was initially interested in acquiring the La Oroya poly-metallic smelter and the Cobriza copper mine, is no longer considering bidding for the assets.

Glencore Plc CEO Ivan Glasenberg's recent low profile visit to Perth, Australia, raised speculation that he was there to revive discussions about the sale of BHP Billiton's Nickel West operation.

Cyprus-based copper-gold explorer EMED Mining Public Ltd. said activist, major shareholder Trafigura Beheer B.V. has increased its stake in the company to 19.35%.

Leyshon Resources has entered into a binding heads of agreement to acquire a 50.1% interest in International Tungsten Services Ltd., or ITS, a private Korean company. ITS has a controlling interest in an advanced tungsten exploration project, and has commenced production of scheelite concentrate through the retreatment of surface stockpile material and bulk samples from an underground mine in the Republic of Korea. In exchange for the stake, Leyshon will provide management and corporate expertise and arrange funding of US$13.5 million for the ongoing development of the project. Leyshon will also provide an initial unsecured, interest free loan of US$500,000 for 12 months to ITS, to be used for working capital.

Bauxite Sector

Source: ASX

Copper Producers

Source: SNL

Copper Developers & Explorers

Source: SNL

Lithium-Tantalum Sector

Source: SNL

Nickel Sector

Source: SNL

Tin Sector

Source: SNL

For further information, please contact:

J-François Bertincourt

m +61 406 998 779

[email protected]

Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

Australian Bauxite 0.33 ▲ 5% 50% 42 2 40

Bauxite Resources 0.12 ▼ (4%) (4%) 27 41 (14)

Cape Alumina 0.017 — 0% (43%) 4 1 3

Metallica Minerals 0.056 ▼ (3%) 12% 9 1 8

Queensland Bauxite 0.027 — 0% 238% 13 4 9

Code Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

ABY Aditya Birla Minerals 0.19 ▼ (5%) (44%) 60 137 (77) NM

AOH Altona Mining 0.23 — 0% 39% 123 18 108 3.0x

HGO Hillgrove Resources 0.51 ▼ (3%) (30%) 75 16 89 2.2x

KBL KBL Mining 0.031 ▲ 3% (30%) 12 7 28 1.7x

MWE Mawson West 0.082 ▼ (36%) (86%) 14 54 40 NM

OZL OZ Minerals 3.50 ▼ (3%) 11% 1,062 364 907 4.9x

PNA PanAust 1.66 ▲ 2% (8%) 1,057 146 1,276 NA

SFR Sandfire Resources 4.85 ▼ (8%) (25%) 756 58 859 3.9x

SRQ Straits Resources 0.004 — 0% (50%) 5 13 128 17.3x

TGS Tiger Resources 0.19 ▼ (8%) (46%) 212 42 343 NA

985 CST Mining 0.008 ▲ 8% (18%) 221 146 65 NM

1208 MMG 0.39 ▼ (3%) 60% 2,057 154 3,976 4.4x

3993 China Molybdenum 0.70 ▼ (14%) 37% 6,190 347 6,803 NA


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ARE Argonaut Resources 0.014 — 0% (41%) 6 2 3

AVB Avanco Resources 0.082 ▼ (1%) 15% 136 32 104

AVI Avalon Minerals 0.030 ▼ (25%) (70%) 4 1 4

AZS Azure Minerals 0.022 — 0% (26%) 18 1 17

BTR Blackthorn Resources 0.21 ▼ (7%) (21%) 34 12 21

CDU CuDeco 1.40 ▲ 16% (23%) 328 9 319

ENR Encounter Resources 0.15 — 0% (21%) 20 4 16

ERM Emmerson Resources 0.032 ▼ (3%) (17%) 12 2 10

FND Finders Resources 0.170 ▲ 6% (18%) 112 8 97

GCR Golden Cross Resources 0.080 ▼ (4%) (20%) 8 2 5

GPR Geopacific Resources 0.061 ▼ (6%) 103% 18 3 17

HAV Havilah Resources 0.110 ▼ (15%) (54%) 17 1 16

HCH Hot Chili 0.19 — 0% (55%) 66 13 64

HMX Hammer Metals 0.080 ▼ (13%) (60%) 7 1 6

IAU Intrepid Mines 0.20 ▲ 3% (37%) 112 11 (24)

IRN Indophil Resources 0.29 — 0% 73% 343 215 134

KDR Kidman Resources 0.081 ▼ (1%) (56%) 10 3 7

KGL KGL Resources 0.23 ▼ (4%) 119% 32 7 18

MEP Minotaur Exploration 0.15 ▲ 11% 3% 27 5 23

MNC Metminco 0.009 ▼ (25%) (71%) 16 8 13

PEX Peel Mining 0.056 ▼ (20%) (78%) 7 3 4

RDM Red Metal 0.14 — 0% (10%) 24 2 22

RXM Rex Minerals 0.17 ▼ (11%) (65%) 37 3 35

SMD Syndicated Metals 0.039 ▲ 30% 15% 11 2 9

SRI Sipa Resources 0.034 ▲ 3% (39%) 11 2 9

SUH Southern Hemisphere 0.055 — 0% 10% 14 2 11

THX Thundelarra Resources 0.120 ▲ 4% 216% 38 1 38

XAM Xanadu Mines 0.110 ▼ (12%) 120% 27 4 28

Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

Altura Mining 0.073 ▼ (9%) (48%) 33 3 49

Galaxy Resources 0.030 ▼ (14%) (36%) 32 3 99

Orocobre 2.67 ▲ 1% 7% 353 26 328

Pilbara Minerals Ltd. 0.040 ▼ (2%) 233% 24 1 24

Reed Resources 0.030 ▼ (3%) (48%) 15 7 10

Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

Independence Group 4.09 ▼ (2%) 32% 958 57 929 6.6x

Mirabella Nickel 0.030 ▼ (19%) 88% 28 34 63 NA

Mincor Resources 0.54 ▼ (1%) (9%) 102 26 80 2.5x

Panoramic Resources 0.46 ▼ (3%) 84% 148 64 92 1.9x

Western Areas 4.21 ▼ (4%) 78% 978 231 965 6.7x

Axiom Mining 0.012 ▼ (8%) (20%) 40 0 39 NM

Cassini Resources 0.14 ▼ (10%) 170% 15 8 8 NM

Legend Mining 0.009 — 0% 13% 18 5 14 NM

Matsa Resources 0.180 — 0% (14%) 26 3 23 NM

Metallica Minerals 0.056 ▼ (3%) 12% 9 1 8 NM

Pioneer Resources 0.015 ▼ (17%) 25% 9 1 8 NM

Poseidon Nickel 0.16 ▲ 3% 104% 94 4 124 NM

Segue Resources 0.007 ▼ (13%) 75% 11 1 9 NM

St George Mining 0.075 ▼ (12%) (21%) 8 1 7 NA

Sirius Resources 2.63 ▼ (7%) 16% 898 59 839 NM

Talisman Mining 0.17 — 0% 57% 22 16 6 NM

Winward Resources 0.16 — 0% (20%) 14 6 8 NM

Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

Consolidated Tin Mines 0.055 — 0% (31%) 14 0 15

Elementos 0.006 ▼ (14%) (61%) 5 1 4

Kasbah Resources Limited 0.068 ▼ (8%) (38%) 31 4 25

Metals X Limited 0.19 — 0% 12% 315 57 258

Monto Minerals 0.002 — 0% (60%) 3 1 2

Stellar Resources Limited 0.026 ▼ (7%) (48%) 8 4 4

Venture Minerals Limited 0.038 ▼ (5%) (79%) 11 7 4


DISCLAIMER



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Gold Producers

Source: SNL

Gold Developers & Explorers

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

AGD Austral Gold 0.12 ▼ (8%) 0% 20 NA 82 6.8x

ALK Alkane Resources 0.22 ▲ 7% (35%) 91 16 75 11.1x

AMI Aurelia Metals 0.26 ▼ (2%) 11% 88 22 173 NM

BDR Beadell Resources 0.24 ▲ 2% (70%) 192 10 254 2.0x

DRM Doray Minerals 0.30 — 0% (46%) 50 16 49 1.5x

EVN Evolution Mining 0.53 ▼ (3%) (14%) 379 32 509 2.5x

IGO Independence Group 4.09 ▼ (2%) 32% 958 57 929 6.6x

KCN Kingsgate Consolidated 0.70 ▲ 9% (21%) 155 54 255 NM

KRM Kingsrose Mining 0.31 ▼ (12%) (9%) 109 7 115 NM

LSA Lachlan Star 0.022 ▼ (12%) (89%) 4 2 22 NA

MIZ Minera Gold 0.004 ▼ (13%) (50%) 9 0 13 NM

MLX Metals X 0.19 — 0% 12% 315 57 258 3.7x

MML Medusa Mining 0.58 ▲ 16% (72%) 119 14 115 2.1x

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

NCM Newcrest Mining 9.65 ▲ 6% 24% 7,393 141 11,454 NM

NGF Norton Gold Fields 0.13 ▲ 4% (4%) 121 38 222 NA

NST Northern Star Resources 1.19 ▲ 10% 52% 705 82 628 7.5x

OGC OceanaGold Corp. 2.56 ▲ 16% 52% 773 28 895 4.9x

PGI PanTerra Gold 0.024 ▲ 4% (41%) 20 6 87 4.3x

PRU Perseus Mining 0.31 ▲ 7% 24% 161 37 125 5.3x

RMS Ramelius Resources 0.048 ▲ 12% (50%) 23 12 12 NM

RRL Regis Resources 1.53 ▲ 9% (48%) 765 7 798 NM

RSG Resolute Mining 0.25 ▲ 2% (56%) 157 19 189 1.8x

SAR Saracen Mineral Holdings 0.25 ▲ 11% 36% 194 36 172 4.1x

SBM St Barbara 0.09 ▼ (10%) (66%) 43 79 304 NM

SLR Silver Lake Resources 0.25 ▲ 2% (53%) 126 24 115 NM

TBR Tribune Resources 2.80 ▲ 3% 20% 141 11 155 9.0x

TRY Troy Resources 0.48 ▼ (4%) (39%) 94 43 91 NM

UML Unity Mining 0.008 ▼ (11%) (80%) 9 7 3 NM


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ABU ABM Resources 0.29 ▲ 5% (12%) 79 10 69

AWV Anova Metals 0.033 ▼ (13%) 65% 8 1 7

AZM Azumah Resources 0.025 ▼ (11%) (11%) 10 4 7

BLK Blackham Resources 0.080 ▼ (5%) (53%) 11 1 11

BSR Bassari Resources 0.014 — 0% 75% 16 - 16

CHN Chalice Gold Mines 0.12 ▲ 5% (15%) 33 44 (11)

CHZ Chesser Resources 0.17 ▲ 1% 62% 38 1 39

DCN Dacian Gold 0.30 ▲ 9% 25% 22 11 11

EXG Excelsior Gold 0.055 — 0% (20%) 25 1 24

FML Focus Minerals 0.010 — 0% (17%) 91 81 91

GCY Gascoyne Resources 0.11 ▲ 5% (25%) 17 1 16

GMR Golden Rim Resources 0.007 — 0% (36%) 9 1 10

GOR Gold Road Resources 0.24 ▲ 9% 142% 142 10 133

GRY Gryphon Minerals 0.071 ▼ (1%) (58%) 28 34 (7)

IDC Indochine Mining 0.013 — 0% (70%) 16 0 17

KGD Kula Gold 0.050 ▼ (17%) (52%) 9 3 9

MSR Manas Resources 0.022 ▼ (4%) (31%) 10 6 8

MUX Mungana Goldmines 0.13 ▼ (19%) 381% 31 5 26

MYG Mutiny Gold 0.029 ▼ (6%) (8%) 20 3 17

OBS Orbis Gold 0.57 — 0% 128% 142 5 138

OGX Orinoco Gold 0.090 ▲ 11% (30%) 11 1 12

PNR Pacific Niugini 0.066 ▲ 2% 5% 21 3 18

PXG Phoenix Gold 0.093 ▲ 16% (40%) 34 9 25

RED Red 5 0.087 ▼ (3%) (1%) 66 38 28

RNI Resource & Investment 0.084 ▼ (1%) 58% 39 5 54

RNS Renaissance Minerals 0.069 ▼ (1%) 15% 28 2 26

SIH Sihayo Gold 0.010 — 0% (66%) 10 0 6

SXG Southern Cross Goldfields 0.012 — 0% (8%) 16 3 18

TAM Tanami Gold 0.015 ▲ 7% (32%) 18 1 24

WPG WPG Resources 0.035 ▼ (15%) 21% 9 5 4

Company NameClose

PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

Aeon Metals 0.115 ▲ 15% (12%) 35 5 42

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

DGR Global 0.033 ▼ (3%) 10% 14 0 14

Heron Resources 0.13 ▼ (7%) (11%) 45 33 14

Ironbark Zinc 0.090 ▼ (9%) 55% 40 2 38

Impact Minerals 0.020 ▲ 18% (50%) 11 1 11

Investigator Resources 0.019 ▲ 12% (60%) 9 3 6

MacPhersons Resources 0.110 ▲ 5% (39%) 33 7 26

Red Metal 0.14 — 0% (10%) 24 8 16

Red River Resources 0.16 ▼ (11%) 1092% 27 9 18

Rox Resources 0.034 — 0% 3% 29 3 26

Terramin Australia 0.125 ▲ 19% 346% 165 5 214

Venturex Resources 0.005 ▲ 25% (50%) 8 1 7

Oz Metals 20141123

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