Tuesday, 25 November Annual General Meeting

Transcription

1 Tuesday, 25 November Annual General Meeting

2 Disclaimer and Important Notice This presentation contains forward looking statements that are subject to risk factors associated with an underground mining business. Where the company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward looking statements. Such risks include, but are not limited to metals price volatility, currency fluctuations, production performance, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, project delay or advancement, environmental risks, approvals and cost estimates, as well as political and operational risks in the countries and states in which we sell product to, shipping risks and governmental regulation and judicial outcomes. The company does not undertake any obligation to release publicly any revisions to any forward looking statement to reflect events or circumstances after the date of this presentation, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. References to Perilya or company references to Perilya Limited (ABN ) or its applicable subsidiaries.

3

4 Formal Business

5 Resolution 1 : Annual Report 30 June 20 To consider and receive the 20 Annual Report and the report of the directors and auditor. Proxy Votes no vote required

6 Resolution 2 : Approval of the Remuneration Report That the Remuneration Report for the financial year ended 30 June 20 be adopted. Proxy Votes For 47,518,206 Against 1,715,907 Open 1,566,243

7 Resolution 3(a): Re-election of Mr Patrick O Connor That approval is given to re-elect Mr Patrick O Connor. Proxy Votes For 58,719,224 Against 927,836 Open 1,626,647

8 Resolution 3(b): Election of Mr Paul Arndt and approval of appointment as Managing Director That approval is given to the election of Mr Paul Arndt and of appointment as Managing Director. Proxy Votes For 57,645,851 Against 774,242 Open 1,626,225

9 Resolution 4 : Sell Surplus Equipment That approval is given to sell surplus equipment. Proxy Votes For 58,953,702 Against 729,473 Open 1,626,225

10 Resolution 5 : Issue Options to Perilya Employees That approval is given to issue options to Perilya employees. Proxy Votes For 46,178,380 Against 4,4,890 Open 235,277

11 CEO/ Managing Director Address by Paul Arndt AGM Presentation By Paul Arndt, CEO / Managing Director 25 November 20

12 Key highlights / events Safety performance Corporate Broken Hill Metals Markets Flinders Mt Oxide Going forward

13 Safety Performance Number of Incidents 25 All Injury Incidents and Frequency Rate Two significant safety incidents in past 12 months Safety Performance improvements Continues to improve 12 month average LTIFR has dropped to 6.6 AIFR has dropped over 12 months from 95.6 to 42.0 No lost time injuries under the new plan Nov-07 Number of Incidents Nov-07 Dec-07 Dec-07 Jan- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- LTI MTI All Injuries Lost Time Injury Incidents and Frequency Rate Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Oct- LTI MTI

14 Corporate and financial position Cash and Investments as at end of Sept $73.6m, includes Free cash of $22.3m Cash held for Performance Bonds $24.7m Commercial paper of $22.6m (WDV) Other investments of $4.0m (WDV) Resizing costs paid No Corporate Debt Cut corporate numbers and overhead by 75 % Reduced exploration spend by over 90 %

15 Broken Hill

16 Broken Hill Operation Strong focus on improving productivity and lowering costs Financial markets necessitated a step change beyond this Successful transition to focussed and resized operation occurred since September Reserves and Resources Initial plan indicated 2-3 years life Have since been able to extend the life of mine +9 years on conservative price assumptions

17 Productivity Improvements at Broken Hill 160 Cost/Tonne Ore Milled Includes some transition costs A$ Significant change since the beginning of the year Exceeding the production targets set under the new operating plan Re-position significantly lower on the industry cost curve (targeting net cash costs UScents/lb) Nov- 07 Nov- 07 Dec- 07 Jan- Feb- Mar- Apr- May- Jun- Tonnes Mined Per Employee Dec- 07 Jan- Feb- Mar- Apr- M ay- Jun- Jul- Jul- Aug- Aug- Sep- Oct- Actual Linear (Actual) Sep- Oct- Actual Linear (Actual)

18 Broken Hill Flexibility of multiple ore sources Piesses Knob Southern Operations Potosi North Mine City Flying Doctor North Mine Deeps 2.8 MT Concentrator Stirling Vale 1130 Smiths Sam Deeds Henry George Monarch Flat 5 km Southern Ops Extensions Perilya Broken Hill Mining Lease Surface projection of ore bodies Existing Operations Care & Mtce and/or Feasiblity Study Exploration targets

19 Metals Market Outlook Zinc Zinc Zinc concentrates market is tight and TC s moving in favour of the mines Current metal price pressure has resulted in mine closures or cuts in production Lead Stocks falling sharply TC s moving strongly in favour of the mines Freight Freight rates have fallen by around 50% and are expected to flow through in the coming year US$/lb US$/lb Nov-07 Jan- Mar- May- Jul- Sep- Nov- Lead Nov-07 Jan- Mar- May- Jul- Sep- Nov-

20 Flinders Flinders Project Slide 10

21 Flinders : Future Optionality Aroona Leigh Creek Completed Mining February Aroona II Swing operation with high leverage to metal price Demonstrated sale of low and high grade at positive return Permit in progress for Reliance deposit Development pipeline as economics allow Tom Thumb Reliance Moolooloo Aristotle Beltana Mine Sundown Wallrider

22 Mount Oxide Copper and Cobalt Project Mount Oxide historical Pit, looking South

23 20 Drill highlights Significant high grade intercepts reported in 20 drilling season that are outside current resource, including: 23m at 8.9 % copper from 395m 12m at 15.3 % copper and 161 g/t Ag from 345m Current resource (February 20) of 203,000 tonnes of copper being updated and expected to increase Resource upgrade expected in Dec

24 Mount Oxide Commercialisation Numerous expressions of interest received from parties interested in acquiring the project Established camp and infrastructure Very successful drilling season Highly Prospective Area Mt Isa in Northern Qld Mt Oxide has the potential to be a robust and stand alone project

25 Group Resources

26 Group Resources (Contained Metal) Total Perilya Group Resources (Contained Metal)* as at 30 June 20 Zinc Lead Copper Cobalt Silver Broken Hill 000 (t) 000 (t) 000 (t) (t) Moz Southern Operations North Mine Uppers North Deeps Potosi Flying doctor Silver Peak Central Blocks Henry George Total - Broken Hill 1,817 1, Flinders Mount Oxide Total Resources 20 2,067 1, * Details of Ore Reserves and Mineral Resources are documented in Perilya s Resources and Reserves Statement at 30 June 20 (updated 10 November 20) and set out on our website. Figures are rounded to JORC Code Guidelines.

27 Go Forward Go Forward

28 Going forward Conserve our cash Bed down the new operating plan and build on productivity improvements to firmly place Broken Hill well down on the cost curve Progress permitting of new deposits and preserve non operating mines to enable rapid response to change in economic conditions Realise full value for our products through improved terms and reviewing customer mix