Beyond Broken Hill.. Len Jubber Chief Executive Officer SA Resources & Energy Investment Conference 30 April 2007
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
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 2005 1 Oct 2005 1 Jan 2006 1 Apr 2006 1 Jul 2006 1 Oct 2006 1 Jan 2007 1 Apr 2007 Slide 3
Strengthening development project pipeline Operating Developing Evaluating Resource Drilling Exploration 1 2a 3 2b 4 5 6 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
Strong financial performance Slide 5
Broken Hill the foundation for growth underutilised infrastructure Southern Operations 1.9 Mt per annum North Mine 0.2 Mt per annum Potosi Mine 0.2 0.4 Mt per annum Broken Hill Concentrator 2.8 Mt Capacity North Mine Deeps 0.2 0.4 Mt per annum evaluating existing North Mine Deeps Potosi Mine North Mine Southern Operations Slide 6
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
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
Flinders zinc project - multiple deposits Slide 9
Beltana mining underway Base case Upside case Capital cost First ore mined First direct ore shipping 150kt @ 38.1% Zn ~ 84% IRR 392kt @ 30% Zn Including pre strip A$30 - $35M April 2007 Late 2007 Slide 10
Flinders stage 1 separate stockpiling creates marketing opportunities Stage 1 - Beltana 376kt @ 32.6% Zn = 123 kt metal High Grade Product 150kt @ 38.1% = 57kt metal 84% IRR MARKETABLE Low Grade Product 242kt @ 21.5% = 53kt metal UNMARKETABLE Intermediate Grade Product 392kt @ ~ 30% = 110kt metal POTENTIALLY MARKETABLE Flinders Resource 966kt @ 31% Zn = 300kt metal Reliance 355kt @ 29.5% Zn = 105 Kt metal Stage 2 Evaluate potential of deposits along strike Other 235kt @ 30.2% Zn = 71 Kt metal Stage 3 Evaluate beneficiation Slide 11
Beltana - cut back of existing pit Beltana resource : 376kt @ 32.6% Zn Slide 12
Beltana potential depth extensions 3% + Zn 10% + Zn Beltana Deep drill target Slide 13
Reliance deposit - 390kt @ 27.6% Zn 3% + Zn 10% + Zn Drilling underway to increase resource Slide 14
Flinders regional prospects - potential targets Aroona Mine Aroona 2 Reliance Moolooloo Aristotle Beltana Mine Third Plain Slide 15
Mount Oxide - Mt Isa copper province Major prospective belt Mt Gordon Fault Mount Oxide 4.0 Mt @ 2.8% Cu Similar style to Mt Gordon Structural Model 100% landholding Under explored Slide 16
Mount Oxide potentially treble 15m @ 1.2 % Cu 1m @ 1.6 % Cu Haemitite Breccia Currently 4.0 Mt @ 2.8 % Cu (112 kt Cu) Indications of continuity at depth and along strike 25 km from Mt Gordon operation Slide 17
Indicative zinc production profile 250,000 200,000 Broken Hill North Mine Beltana High Grade & Intermediate Ore Flinders Resource Potential (Reliance, Aroona & Moolooloo) North Mine Deeps Potential Contained Zinc (tonnes) 150,000 100,000 50,000 Broken Hill Southern Operations Reserves Potosi Resource Potosi Upside Broken Hill Southern Operations Resources & Upside - 2006 ~ 2015 Slide 18
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
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
. positioning for sustainable growth