Beyond Broken Hill.. Len Jubber Chief Executive Officer. SA Resources & Energy Investment Conference 30 April 2007

Transcription

1 Beyond Broken Hill.. Len Jubber Chief Executive Officer SA Resources & Energy Investment Conference 30 April 2007

2 Agenda Positioning for growth Broken Hill Operation funding growth Flinders zinc project right time, right place Mount Oxide copper project location, location Investment proposition Slide 2

3 Major milestones and achievements $6.00 Flinders Approved Potosi Approved Cash & Receivables A$ 238 M Best ASX 200 performer in 2006 Perilya Limited Share Price (A$ per share) $5.00 $4.00 $3.00 $2.00 $1.00 Cash A$ 22 M A$48 M Silver Transaction Maiden Dividend 2005/06 1c/share Full Year Npat 2005/06 A$67 M, 35.6c eps Final Dividend 2005/06 4c/share Included in ASX 200 Interim Dividend 2006/07 10c/share H1 2006/07 $76.1 M Npat 39.8 eps $- 1 Jul Oct Jan Apr Jul Oct Jan Apr 2007 Slide 3

4 Strengthening development project pipeline Operating Developing Evaluating Resource Drilling Exploration 1 2a 3 2b Broken Hill (Zn, Pb, Ag) Potosi, BH (Zn, Pb, Ag) Flinders (Zn, Pb, Mn) North Mine Deeps, BH (Zn, Pb, Ag) Mount Oxide (Cu) Tampang (Cu, Au) Dee Range (Cu, Zn) Slide 4

5 Strong financial performance Slide 5

6 Broken Hill the foundation for growth underutilised infrastructure Southern Operations 1.9 Mt per annum North Mine 0.2 Mt per annum Potosi Mine Mt per annum Broken Hill Concentrator 2.8 Mt Capacity North Mine Deeps Mt per annum evaluating existing North Mine Deeps Potosi Mine North Mine Southern Operations Slide 6

7 Broken Hill the foundation for growth targeting 10+ year mine life Perilya Broken Hill Mining Lease Surface projection of ore bodies 5 km North Mine Potosi Exploration decline at Potosi Southern Operations City Exploration between Potosi & North Mine Regional Exploration at Henry George 10km south Feasibility Study for North Mine Deeps Extension drilling from existing underground operations & surface Slide 7

8 Flinders zinc project 4,183km 2 landholding Rail line Tenements QLD Beltana SOUTH AUSTRALIA Leigh Creek NSW Broken Hill Port Augusta Port Pirie Adelaide VIC Slide 8

9 Flinders zinc project - multiple deposits Slide 9

10 Beltana mining underway Base case Upside case Capital cost First ore mined First direct ore shipping 38.1% Zn ~ 84% IRR 30% Zn Including pre strip A$30 - $35M April 2007 Late 2007 Slide 10

11 Flinders stage 1 separate stockpiling creates marketing opportunities Stage 1 - Beltana 32.6% Zn = 123 kt metal High Grade Product 38.1% = 57kt metal 84% IRR MARKETABLE Low Grade Product 21.5% = 53kt metal UNMARKETABLE Intermediate Grade Product ~ 30% = 110kt metal POTENTIALLY MARKETABLE Flinders Resource 31% Zn = 300kt metal Reliance 29.5% Zn = 105 Kt metal Stage 2 Evaluate potential of deposits along strike Other 30.2% Zn = 71 Kt metal Stage 3 Evaluate beneficiation Slide 11

12 Beltana - cut back of existing pit Beltana resource : 32.6% Zn Slide 12

13 Beltana potential depth extensions 3% + Zn 10% + Zn Beltana Deep drill target Slide 13

14 Reliance deposit % Zn 3% + Zn 10% + Zn Drilling underway to increase resource Slide 14

15 Flinders regional prospects - potential targets Aroona Mine Aroona 2 Reliance Moolooloo Aristotle Beltana Mine Third Plain Slide 15

16 Mount Oxide - Mt Isa copper province Major prospective belt Mt Gordon Fault Mount Oxide % Cu Similar style to Mt Gordon Structural Model 100% landholding Under explored Slide 16

17 Mount Oxide potentially treble 1.2 % Cu 1.6 % Cu Haemitite Breccia Currently % Cu (112 kt Cu) Indications of continuity at depth and along strike 25 km from Mt Gordon operation Slide 17

18 Indicative zinc production profile 250, ,000 Broken Hill North Mine Beltana High Grade & Intermediate Ore Flinders Resource Potential (Reliance, Aroona & Moolooloo) North Mine Deeps Potential Contained Zinc (tonnes) 150, ,000 50,000 Broken Hill Southern Operations Reserves Potosi Resource Potosi Upside Broken Hill Southern Operations Resources & Upside ~ 2015 Slide 18

19 Perilya investment proposition FLINDERS High grade zinc Low capital cost Short lead time Strong demand for concentrate / high grade ore High zinc price Base metals M & A Diversify single asset cash flow GROWTH BROKEN HILL Potosi Exploration decline North Mine Deeps Prefeasibility Study Near Mine Exploration Regional Exploration MOUNT OXIDE High grade copper & low arsenic 112kt copper resource 25km from Mt Gordon TAMPANG Large copper gold porphry Slide 19

20 In summary Perilya has A$150M cash and no debt Strong cash flow from Broken Hill Two low capex development projects Two advanced exploration projects Seeking M&A opportunities to diversify Broken Hill cash flow Slide 20

21 . positioning for sustainable growth