PanAust Limited:Way ahead

PanAust Managing Director Dr Fred Hess

Curtin University, 16 April 2017

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

Phu Kham Copper-Gold Operation

Ban Houayxai Gold-Silver Operation

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

What constitutes a successful business?

Our recent highlights

Safety

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

Mining

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 %

Processing

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

Logistics

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

Way Ahead