Ozm 20141116

Oz Metals 16th 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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CHINESE COPPER IMPORTS STAY STRONG Base Metals & Precious Metals Fundamentals

Sources: Metal Prices, RBA, Terra Studio

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Jan-14 Apr-14 Jul-14

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Bauxite

US$/t $A/t

$2.75

$3.00

$3.25

$3.50

$3.75

$4.00

0

100

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400

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

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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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Tin

Inventory

US$

A$

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$0.85

$0.90

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$1.05

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$1.15

$1.20

$1.25

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Zinc

SHFE LME

US$ A$


DISCLAIMER



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Markets & Majors

Thomson Reuters - China's economy lost further momentum in October, with factory growth dipping and investment growth hitting a near 13-year low, reinforcing views that Beijing will need to do more to fight slackening growth. Months of tepid performance in factories and the growing drag from a weakening housing market are putting Beijing's 2014 growth target of around 7.5% at greater risk. Fixed-asset investment, an important driver of growth, grew 15.9% in the first 10 months of the year from a year ago. That was the weakest pace since December 2001. October factory output rose 7.7% from a year earlier, which was higher August's 6.9% rise but below expectations and the second weakest pace since the height of the global financial crisis. Retail sales growth eased slightly to 11.5%, the slowest pace since early 2006. Despite a raft of stimulus measures, China's annual economic growth slowed to 7.3% in the third quarter, the weakest pace since the global financial crisis. Many analysts believe additional support measures may be needed to offset the drag from the cooling housing market, but they are divided over whether authorities will take more forceful action such as cutting interest rates unless there is a risk of a sharper slowdown.

China's unwrought copper steel imports are expected to

hover around 430,000 tonnes in November, bolstered by strong financial demand near the year-end, Shanghai Metals Market reported. Chinese banks have relaxed tight grip over metals financing in the wake of the commodity fraud case in Qingdao port earlier this year. The country's copper imports rose 2.6% to 400,000 tonnes last month, beating market expectations.

China's State Reserves Bureau intends to purchase 700,000 tonnes of copper within this year, more than twice the

300,000 tonnes according to a report posted on the State Bureau of Nonferrous Metal Industry's website.

Global gold demand fell to its lowest in nearly five years in

the third quarter as Chinese buying slid by a third, the World Gold Council said, putting it back behind India as the world's biggest gold consumer. Total gold demand fell 2% to 929 tonnes in the third quarter. That is the lowest since the last three months of 2009. Last year's number one consumer China saw a 39% drop in jewellery consumption as well as a 30% fall in bar and coin investment. Combined demand fell 37%. India once again took over as the world's biggest gold consumer, buying 225.1 tonnes of gold jewellery, coins and bars last quarter, compared to 182.7 tonnes in China.

The Indian government will resume discussions on possibly restricting gold imports into the country, after overseas

purchases surged in the past two months. Gold imports in October alone increased to about 150 tonnes from less than 25 tonnes last year.

Thomson Reuters - Switzerland's financial watchdog said it had found a "clear attempt" to manipulate precious metals

price benchmarks during a cross-market investigation into trading at UBS bank. The FINMA regulator revealed its findings just days after the precious metals industry decided to automate the setting of reference prices for gold, ending the twice-daily "fix" by a panel of banks which has been used for almost a century. Along with other precious metal

benchmarks, the gold fix has come under increased regulatory scrutiny since a scandal broke in 2012 over manipulation of the Libor interest rate, followed by revelations of similar behavior on the global currency market. Regulators fined six major banks on Wednesday a total of $4.3 billion over the foreign exchange manipulation, including a 134 million Swiss franc ($139 million) penalty that FINMA slapped on UBS, Switzerland's biggest bank.

Glencore booked additional write-downs of A$6 billion on its Australian subsidiary for 2013 as a result of a weak economic environment, The Australian reported. The mining giant also disclosed that it made a A$780 million provision for take-or-pay coal mining contracts in Australia as prices for the commodity fell.

Rio Tinto's Kennecott copper smelter is considering treating

third-party concentrate on a large scale for the first time, as the second-biggest U.S. copper producer tries to tackle falling ore grades from its nearby mine. The move would be a big shift for Rio's biggest smelter, which turns ore from its nearby century-old Bingham Canyon mine into refined metal. The reasons for the low-grade ore at Bingham, the world's biggest open-pit, are not known.

Deals, Funding, Mergers & Acquisitions

SNL - Despite having amassed a war chest of some US$4.8

billion, Mick Davis' new investment vehicle X2 Resources has yet to land a deal, missing out on BHP Billiton. spin-co assets and potentially encountering a similar situation in approaching Anglo American. The rumoured deal has been pending for some time, raising questions whether and why Anglo American is reluctant to sell to Davis, even though it has a disposal plan in place in line with what the former Xstrata chief seeks. Theoretically, a transaction would serve both sides. Bernstein Research analyst Paul Gait believed a split asset sale could be logical, enabling Anglo American to strike a multi-billion dollar deal with Chinese or Japanese trading companies, for example, and Davis getting his hands on Chilean copper assets.

BHP Billiton deferred selling its Nickel West operation after offers for the unit failed to meet price expectations. The mining giant valued Nickel West at between A$500 million and A$800 million.

Ironbark Zinc has renegotiated a joint venture agreement with Glencore to increase its ownership in the Captains Flat base metals project in New South Wales, Australia, to 50%.

Poseidon Nickel completed the acquisition of the Lake Johnston nickel mine in Western Australia from Norilsk Nickel for A$1 million, as previously agreed.

Syrah Resources signed up major Japanese trading house Marubeni Corp. to pre-market graphite samples from the company's Balama graphite-vanadium project in Mozambique for industrial and battery applications in Japan and Korea.

Trafigura expanded its shareholding in base metals producer Nyrstar to 15.3% as of last week from the 10.2% stake it previously held, Metal Bulletin reported. The increased stake is valued at €132.7 million.


DISCLAIMER



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Bauxite Sector

Source: ASX

Copper Producers

Source: SNL

Copper Developers & Explorers

Source: SNL

Nickel Sector

Source: SNL

For further information, please contact:

J-François Bertincourt

m +61 406 998 779

[email protected]

Gold Producers

Source: SNL

Gold Developers & Explorers

Tin Sector

Source: SNL

Zinc & Poly-metallic Sector

Source: SNL

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 — 0% 45% 41 2 39

BAU Bauxite Resources 0.12 ▼ (4%) 0% 28 41 (13)

CBX Cape Alumina 0.017 ▲ 6% (43%) 4 1 3

MLM Metallica Minerals 0.058 ▲ 5% 16% 10 1 9

QBL Queensland Bauxite 0.027 — 0% 238% 13 4 9


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

ABY Aditya Birla Minerals 0.20 ▲ 5% (41%) 63 137 (73) NM

AOH Altona Mining 0.23 ▼ (4%) 39% 123 18 108 3.0x

HGO Hillgrove Resources 0.52 ▲ 2% (28%) 77 16 91 2.2x

KBL KBL Mining 0.030 ▼ (12%) (32%) 12 7 27 1.7x

MWE Mawson West 0.126 ▼ (4%) (78%) 22 54 48 NM

OZL OZ Minerals 3.59 ▲ 1% 14% 1,089 364 935 5.1x

PNA PanAust 1.63 ▲ 3% (10%) 1,038 146 1,256 NA

SFR Sandfire Resources 5.25 ▲ 1% (19%) 819 58 922 4.2x

SRQ Straits Resources 0.004 ▼ (20%) (50%) 5 13 128 17.3x

TGS Tiger Resources 0.20 ▼ (2%) (42%) 229 42 359 NA

985 CST Mining 0.008 ▲ 19% (24%) 204 146 49 NM

1208 MMG 0.40 ▲ 7% 64% 2,102 154 4,011 4.4x

3993 China Molybdenum 0.82 ▲ 14% 60% 6,394 347 7,003 NA


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

ARE Argonaut Resources 0.014 ▼ (13%) (41%) 6 2 3

AVB Avanco Resources 0.083 ▲ 4% 17% 138 32 106

AVI Avalon Minerals 0.040 — 0% (60%) 6 1 5

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

BTR Blackthorn Resources 0.22 ▲ 5% (15%) 36 12 24

CDU CuDeco 1.20 ▲ 7% (33%) 283 9 273

ENR Encounter Resources 0.15 ▼ (9%) (21%) 20 4 16

ERM Emmerson Resources 0.033 — 0% (15%) 12 2 11

FND Finders Resources 0.160 ▼ (6%) (23%) 106 8 90

GCR Golden Cross Resources 0.083 ▼ (13%) (17%) 8 2 5

GPR Geopacific Resources 0.065 ▲ 7% 117% 19 3 19

HAV Havilah Resources 0.130 — 0% (46%) 20 1 19

HCH Hot Chili 0.19 ▼ (3%) (55%) 66 13 64

HMX Hammer Metals 0.092 ▼ (3%) (54%) 8 1 7

IAU Intrepid Mines 0.20 ▼ (3%) (38%) 109 11 (26)

IRN Indophil Resources 0.29 ▲ 2% 73% 343 215 134

KDR Kidman Resources 0.082 ▲ 3% (56%) 10 3 7

KGL KGL Resources 0.24 ▼ (4%) 129% 34 7 20

MEP Minotaur Exploration 0.14 ▼ (13%) (7%) 24 5 20

MNC Metminco 0.012 ▲ 9% (61%) 22 8 18

PEX Peel Mining 0.070 ▲ 8% (73%) 9 3 6

RDM Red Metal 0.14 ▼ (13%) (10%) 24 2 22

RXM Rex Minerals 0.19 ▼ (5%) (60%) 42 3 39

SMD Syndicated Metals 0.030 ▼ (19%) (12%) 8 2 6

SRI Sipa Resources 0.033 ▼ (11%) (41%) 8 2 6

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

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

XAM Xanadu Mines 0.125 ▲ 32% 150% 30 4 31


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

IGO Independence Group 4.18 ▼ (0%) 34% 979 57 951 6.8x

MBN Mirabella Nickel 0.037 ▼ (24%) 131% 34 34 69 NA

MCR Mincor Resources 0.55 ▼ (2%) (8%) 103 26 81 2.6x

PAN Panoramic Resources 0.48 ▼ (7%) 90% 153 64 97 2.0x

WSA Western Areas 4.38 ▲ 3% 85% 1,017 231 1,005 7.0x

AVQ Axiom Mining 0.013 ▼ (7%) (13%) 43 0 42 NM

CZI Cassini Resources 0.15 ▲ 25% 200% 17 8 10 NM

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

MAT Matsa Resources 0.180 ▼ (8%) (14%) 26 3 23 NM

MLM Metallica Minerals 0.058 ▲ 5% 16% 10 1 9 NM

PIO Pioneer Resources 0.018 ▲ 29% 50% 11 1 10 NM

POS Poseidon Nickel 0.15 ▼ (9%) 97% 90 4 121 NM

SEG Segue Resources 0.008 — 0% 100% 12 1 11 NM

SGQ St George Mining 0.085 ▲ 13% (11%) 10 1 8 NA

SIR Sirius Resources 2.83 ▲ 3% 25% 966 59 908 NM

TLM Talisman Mining 0.17 ▲ 6% 57% 22 16 6 NM

WIN Winward Resources 0.16 — 0% (20%) 10 6 4 NM


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

TEV/

EBITDA

AGD Austral Gold 0.13 — 0% 8% 22 NA 83 6.9x

ALK Alkane Resources 0.21 ▼ (5%) (40%) 85 16 69 10.2x

AMI Aurelia Metals 0.26 — 0% 13% 89 22 174 NM

BDR Beadell Resources 0.24 ▼ (8%) (70%) 188 10 250 2.0x

DRM Doray Minerals 0.30 ▼ (2%) (46%) 50 16 49 1.5x

EVN Evolution Mining 0.55 ▼ (1%) (11%) 390 32 519 2.5x

IGO Independence Group 4.18 ▼ (0%) 34% 979 57 951 6.8x

KCN Kingsgate Consolidated 0.64 ▲ 2% (28%) 142 54 242 NM

KRM Kingsrose Mining 0.35 ▲ 8% 3% 124 7 129 NM

LSA Lachlan Star 0.025 ▼ (17%) (88%) 4 2 22 NA

MIZ Minera Gold 0.004 — 0% (43%) 10 0 15 NM

MLX Metals X 0.19 ▲ 3% 12% 315 57 258 3.7x

MML Medusa Mining 0.50 — 0% (76%) 103 14 99 1.8x

MOY Millennium Minerals 0.075 ▲ 19% (61%) 16 2 55 5.6x

NCM Newcrest Mining 9.10 ▲ 4% 17% 6,972 141 11,033 NM

NGF Norton Gold Fields 0.13 ▼ (4%) (7%) 116 38 217 NA

NST Northern Star Resources 1.08 ▲ 11% 38% 640 82 563 6.7x

OGC OceanaGold Corp. 2.18 ▲ 4% 31% 656 28 777 4.3x

PGI PanTerra Gold 0.023 ▼ (12%) (44%) 19 6 85 4.2x

PRU Perseus Mining 0.29 ▲ 14% 16% 150 37 114 4.9x

RMS Ramelius Resources 0.043 ▲ 8% (56%) 20 12 10 NM

RRL Regis Resources 1.40 ▲ 9% (52%) 700 7 733 NM

RSG Resolute Mining 0.24 ▲ 7% (57%) 154 19 185 1.8x

SAR Saracen Mineral Holdings 0.22 — 0% 22% 174 36 153 3.6x

SBM St Barbara 0.10 ▼ (7%) (62%) 48 79 309 NM

SLR Silver Lake Resources 0.25 ▼ (4%) (54%) 123 24 112 NM

TBR Tribune Resources 2.72 ▼ (4%) 17% 137 11 151 8.8x

TRY Troy Resources 0.50 ▲ 15% (36%) 98 43 95 NM

UML Unity Mining 0.009 ▼ (10%) (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 0.28 ▼ (2%) (17%) 75 10 65

AWV Anova Metals 0.038 ▼ (5%) 90% 9 1 8

AZM Azumah Resources 0.028 ▲ 12% 0% 11 4 9

BLK Blackham Resources 0.084 ▼ (15%) (51%) 12 1 12

BSR Bassari Resources 0.014 ▲ 27% 75% 16 - 16

CHN Chalice Gold Mines 0.11 ▼ (4%) (19%) 32 44 (13)

CHZ Chesser Resources 0.17 ▼ (1%) 60% 37 1 38

DCN Dacian Gold 0.28 ▼ (5%) 15% 20 11 9

EXG Excelsior Gold 0.055 ▼ (4%) (20%) 25 1 24

FML Focus Minerals 0.010 ▲ 11% (17%) 91 81 91

GCY Gascoyne Resources 0.10 ▼ (9%) (29%) 17 1 16

GMR Golden Rim Resources 0.007 ▼ (13%) (36%) 7 1 8

GOR Gold Road Resources 0.22 ▲ 2% 122% 130 10 121

GRY Gryphon Minerals 0.072 ▼ (1%) (58%) 29 34 (6)

IDC Indochine Mining 0.013 ▼ (19%) (70%) 16 0 17

KGD Kula Gold 0.060 ▼ (6%) (43%) 11 3 11

MSR Manas Resources 0.023 — 0% (28%) 10 6 8

MUX Mungana Goldmines 0.16 ▲ 33% 493% 39 5 33

MYG Mutiny Gold 0.031 ▲ 3% (2%) 21 3 18

OBS Orbis Gold 0.57 ▲ 4% 128% 142 5 138

OGX Orinoco Gold 0.081 ▼ (15%) (37%) 10 1 11

PNR Pacific Niugini 0.065 — 0% 3% 20 3 18

PXG Phoenix Gold 0.080 — 0% (48%) 30 9 20

RED Red 5 0.090 — 0% 2% 68 38 30

RNI Resource & Investment 0.085 ▲ 13% 60% 40 5 55

RNS Renaissance Minerals 0.070 — 0% 17% 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 0.014 — 0% (36%) 16 1 23

WPG WPG Resources 0.041 ▼ (2%) 41% 11 5 5


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

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

ELT Elementos 0.007 — 0% (54%) 5 1 5

KAS Kasbah Resources Limited 0.074 ▲ 17% (33%) 33 4 27

MLX Metals X Limited 0.19 ▲ 3% 12% 315 57 258

MOO Monto Minerals 0.002 — 0% (60%) 3 1 2

SRZ Stellar Resources Limited 0.028 ▼ (20%) (44%) 8 4 4

VMS Venture Minerals Limited 0.040 ▼ (11%) (78%) 11 7 5


PriceWeek r YTD r

52 Week

Range

Market Cap

(A$m)

Cash

(A$m)

TEV

(A$m)

AQR Aeon Metals 0.100 ▼ (5%) (23%) 30 5 37

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

DGR DGR Global 0.034 ▼ (6%) 13% 14 0 15

HRR Heron Resources 0.14 ▼ (4%) (4%) 49 33 18

IBG Ironbark Zinc 0.099 ▲ 3% 71% 44 2 42

IPT Impact Minerals 0.017 ▼ (29%) (58%) 10 1 9

IVR Investigator Resources 0.017 ▼ (19%) (64%) 8 3 5

MRP MacPhersons Resources 0.105 ▲ 17% (42%) 32 7 25

RDM Red Metal 0.14 ▼ (13%) (10%) 24 8 16

RVR Red River Resources 0.18 — 0% 1246% 30 9 21

RXL Rox Resources 0.034 ▼ (6%) 3% 29 3 26

TZN Terramin Australia 0.105 ▲ 7% 275% 138 5 188

VXR Venturex Resources 0.004 ▼ (20%) (60%) 6 3 3

Ozm 20141116

Economy & Finance

Transcript of Ozm 20141116