OZ MINERALS AUSTRALIA & EUROPE ROADSHOW May 2011 WWW.OZMINERALS.COM
DISCLAIMER This presentation has been prepared by OZ Minerals Limited ( OZ Minerals ) and consists of written materials/slides for a presentation concerning OZ Minerals. By reviewing/attending this presentation, you agree to be bound by the following conditions. No representation or warranty, express or implied, is made as to the fairness, accuracy, or completeness of the information, contained in the presentation or of the views, opinions and conclusions contained in this material. To the maximum extent permitted by law, OZ Minerals and its related bodies corporate and affiliates, and its respective directors, officers, employees, agents and advisers disclaim any liability (including, without limitation any liability arising from fault or negligence) for any loss or damage arising from any use of this material or its contents, including any error or omission there from, or otherwise arising in connection with it. Some statements in this presentation relate to the future and are forward looking statements. Such statements may include, but are not limited to, statements with regard to intention, capacity, future production and grades, projections for sales growth, estimated revenues and reserves, targets for cost savings, the construction cost of new projects, projected capital expenditures, the timing of new projects, future cash flow and debt levels, the outlook for minerals and metals prices, the outlook for economic recovery and trends in the trading environment and may be (but are not necessarily) identified by the use of phrases such as will, expect, anticipate, believe and envisage. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside OZ Mineral s control. Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors, including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation. Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements and intentions which speak only as at the date of the presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, OZ Minerals does not undertake any obligation to publicly release any updates or revisions to any forward looking statements contained in this presentation, whether as a result of any change in OZ Minerals expectations in relation to them, or any change in events, conditions or circumstances on which any such statement is based. Certain statistical and other information included in this presentation is sourced from publicly available third party sources and has not been independently verified. OZ MINERALS PAGE 2
SNAPSHOT OZ MINERALS PAGE 3
OZ MINERALS Market capitalisation: Prominent Hill: Exploration: Business Development: ~A$5 billion Open-pit copper and gold operation. Underground development underway. Priority area Prominent Hill. Further global and regional opportunities. Pursuing opportunities in copper. A$1.3 billion: Cash at 31 December 2010. No debt. Equity investments: 42.5% of Toro Energy, 12.9% of IMX Resources, 18.9% of Sandfire Resources and others. OZ MINERALS PAGE 4
HIGHLIGHTS OZ MINERALS PAGE 5
OZ MINERALS STRONG RECENT PERFORMANCE Continued strong performance from Prominent Hill. Construction of the Ankata underground progressing well. Extensive, A$70 million, exploration drilling program at Prominent Hill - ten drill rigs on site. Agreement to purchase Carrapateena copper deposit in South Australia for US$250 million. Dividends of 7 cents per share for 2010. Capital management program initiated.* * Subject to shareholder approval OZ MINERALS PAGE 6
OPERATIONS OVERVIEW OZ MINERALS PAGE 7
SOUTH AUSTRALIA OZ MINERALS PAGE 8
PROMINENT HILL SITE VILLAGE ANKATA DEPOSIT AREA ROM PAD NORTHERN WASTE DUMP PROCESSING PLANT MALU PIT SOUTHERN WASTE DUMP TAILINGS DAM OZ MINERALS PAGE 9
PROMINENT HILL PRODUCTION Product: Production (2010): Production Guidance: Mine and Plant: High grade (~50% Cu), high quality, copper concentrate. 112,171t contained copper, 196,400oz gold. Contained copper 100,000t to 110,000t. Contained gold 185,000oz plus, for 5+ years. Open pit, mine, crush, grind, flotation. Cash costs: Competitive C1 cash costs US46.4c/lb for 2010. Estimated C1 costs 2011: Workforce: <US70c/lb. Approximately 800 (including contractors). OZ MINERALS PAGE 10
OPEN-CUT MINE CROSS SECTION NORTH-SOUTH Complete August 2012 June 2014 October 2017 (Stock piles continue to be processed after mining of open-cut complete) OZ MINERALS PAGE 11
PROMINENT HILL - ANKATA UNDERGROUND Ankata underground will enable production of 100,000t to 110,000t copper to be maintained. The portal was accessed in November and advanced 626 meters by Q1 2011. First ore to be produced from stoping by Q1 2012. Full mining rates (1.2Mtpa) by Q3 2012. VR4A April 2011 Interim Decline Ankata Decline Final Portal VR2A OZ MINERALS PAGE 12
GROWTH OZ MINERALS PAGE 13
PROMINENT HILL FOCUS ON MUNDA/KALAYA CONTINUITY APPEARS GOOD PROMINENT HILL LONG SECTION 2011 OZ MINERALS PAGE 14
PROMINENT HILL FOCUS ON MUNDA/KALAYA CONTINUITY APPEARS GOOD PROMINENT HILL LONG SECTION 2011 MINING STUDY 2011/2012 OZ MINERALS PAGE 15
REGIONAL EXPLORATION NEW MINERAL PROVINCE EL3729 EL3730 Future OZ Minerals Prospects IMX JV target areas Approximately 7,000km 2 tenement area - 4,000km 2 OZ Minerals - 3,000km 2 IMX JV Coober Pedy EL3445 Gravity Shadwell IMX tenements IP Surveys in Progress EL3830 EL4429 EL3518 Airborne Magnetic Survey completed in Q4 20km OZ MINERALS PAGE 16 Arapiles EL4283 Rouse EL3795 EL4132 EL4429 EL4429 Bluebird Taurus Blue Duck Cressida Epsilon Near Mine EL4025 Prominent Hill EL3730 Neptune Metis EL4446 Perseus Hallifax Danae Hill EL4390 OZ Minerals tenements EL3387 $50 million regional exploration budget. Detailed geophysics surveys undertaken. 2011 five drill rigs dedicated to the OZ Minerals regional program and one drill rig for IMX JV exploration. 21 holes drilled in quarter one. Many holes intersected IOCG alteration. Some wide intervals of low-grade copper mineralisation. Program continues.
ACQUISTION OF THE CARRAPATEENA COPPER GOLD DEPOSIT IN SOUTH AUSTRALIA Agreement to purchase Carrapateena IOCG copper project in March. US$250 million, plus US$50 million on production of copper and uranium, gold or silver. Benefits for OZ Minerals: Meets strategy: copper, appropriate production scale potential, favourable mining jurisdiction, long-life potential. Development could be funded from anticipated Prominent Hill cash flows. Offers development, operations, exploration, logistics and management synergies. OZ MINERALS PAGE 17
COMPETITIVE ACQUISTION 90 80 Exploration / Development Construction / Production 70 60 EVc/lb CuEq 50 40 Advanced Projects / Producers 30 20 10 - OZ Minerals/ Carrapateena OZ MINERALS PAGE 18
CARRAPATEENA DEPOSIT - INITIAL INFERRED RESOURCE TO SOUTH Chalcopyrite shell in yellow Exploration & Inferred Resource status area Exploration area Historic drillhole collar Historic drillhole trace N Target range: 25-45Mt @ 1% Cu, 0.4g/t Au, 140ppm U 3 O 8, 4g/t Ag Mineralisation not well understood, potential for extension to the east Main deposit Potential for extension at depth Mineralisation open to the east Exploration area Exploration & Inferred Resource status area Inferred resource: 0m 250m 203Mt @ 1.31% Cu, 0.56g/t Au, 270ppm U 3 O 8, 6g/t Ag OZ MINERALS PAGE 19
MINING OPTIONS STUDY Options: Block caving. Inclined sublevel caving. Stoping at higher levels (then caving). Visual representation of the Carrapateena deposit Lower mining costs <$10/t $10 20/t $20 50/t Block caving Sublevel caving Sublevel open stoping Lower development costs OZ MINERALS PAGE 20
BLOCK CAVING INCREASINGLY COMMON Source: New Gold OZ MINERALS PAGE 21
CARRAPATEENA COMPARABLE WITH OTHER GLOBAL BLOCK CAVES Cu % 2.00 1.75 Cu/Au grades and relative deposit size global block caves (Mt) Northparkes Lift 1 1.50 1.25 1.00 Oyu-Tolgoi Hugo North Lift Northparkes Lift 2 Grasberg IOZ Northparkes E48 Carrapateena Grasberg DOZ Grasberg GBC 0.75 Bingham Canyon SE mine Bingham Canyon NE mine Wafi-Golpu Red Chris 0.50 Skouries 0.25 Cadia East Ridgeway Deeps 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 Au g/t Operating mines Development project Size = Reserves Mt * NB: Carrapateena based on target range not Resource or Reserve Source: OZ Minerals research OZ MINERALS PAGE 22
CARRAPATEENA CONCEPTUAL PROJECT SCHEDULE 2011 2012 2013 2014 2015 2016 2017 Exploration drilling to complete initial Inferred Resource, 10,000m Option studies for mining Phase II exploration drilling to move to Indicated Resource Geotechnical drilling Pre-feasibility Exploration shaft Feasibility study Construction OZ MINERALS PAGE 23
OZ MINERALS GLOBAL EXPLORATION SAN EDUARDO Porphyry copper target defined at El Vendo. Drilling underway. Narrow intervals of gold mineralisation at Mesam CAMBODIA Alteration in initial holes Limited work elsewhere COBAR MEXICO PICHASCA Porphyry target defined. Drilling commenced. Alteration and low grade copper PROMINENT HILL Drilling underway Minor copper at China Workings prospect AUSTRALIA CHILE Headquarters Operation Exploration An intensive ongoing drilling and prospect generation program. 10 drill rigs currently on site. OZ MINERALS PAGE 24
CAPITAL MANAGEMENT Proposed capital management initiatives; Capital return* - 12 cents per share (return of circa $390m) Share consolidation* - 1:10 share consolidation resulting in under 324 million issued shares On-market share buyback up to $200m program over 12 months following capital return Capital return and share consolidation subject to shareholder approval at AGM Results in cash of circa $1 billion** plus unused debt capacity, available for execution of growth strategy released in November 2009. * Subject to shareholder approval at OZ Minerals AGM on 18 May 2011. ** NB US$250 million of this already committed to Carrapateena acquisition. OZ MINERALS PAGE 25
SUMMARY High quality copper asset at Prominent Hill strong performance competitive cash costs new underground development aggressive $70 million exploration program at Prominent Hill - near mine and regional Significant cash holding A$1.33 billion at 31 December 2010 Active business development clear strategy disciplined approach flexibility of cash Capital management program Capital return 12 cents per share* Share consolidation* Share buyback up to $200 million Strongly performing commodities good outlook for copper and gold * Subject to shareholder approval OZ MINERALS PAGE 26
APPENDICES
INCOME STATEMENT CONTINUING OPERATIONS A$M 2010 2009* Revenue 1,129.2 609.4 Cost of goods sold (338.3) (209.6) Net foreign exchange loss (89.6) (113.0) Exploration expense (50.2) (19.0) Other expenses (54.9) (45.9) EBITDA 596.2 221.9 Depreciation and amortisation (152.6) (85.7) EBIT (pre impairment) 443.6 136.2 Net impairment reversal 190.4 - EBIT 634.0 136.2 Net financing expense 27.6 (88.3) Income tax expense (122.3) (16.6) NPAT from Continuing Operations 539.3 31.3 *2009: eight months of Prominent Hill operations Excellent first full year of Prominent Hill operations. Strong revenue driven by strong production and increased prices for copper and gold. Exploration increased through H2 2010 and will continue to grow into FY11. OZ MINERALS PAGE 28
INCOME TAX Tax losses fully sheltered 2010 earnings no tax payable for the year. Tax losses not expected to fully shelter 2011 earnings. Recognition of restricted fractional losses lowered 2010 effective tax rate. Deferred tax asset at 31 December 2009 has become deferred tax liability at 31 December 2010 due to utilisation of tax losses during the year. Overview of movement in recognized tax losses Balance at 1 Jan 2010 Group Fractional Total 177.3 177.3 Utilized during the year (193.7) (193.7) Amendments and recognition of fractional losses 68.5 55.0 123.5 Balance at 31 December 2010 52.1 55.0 107.1 OZ MINERALS PAGE 29
2011 SENSITIVITIES Sensitivities of EBIT in 2011 AUD:USD +/- 1c Copper +/- 5% Gold +/- 5% $12.6 million $50.8 million $14.3 million Prices as at 31 December 2010 Copper Gold US$4.41/lb US$1,410/oz AUD:USD 1.0172 OZ MINERALS PAGE 30
C1 COST GUIDANCE FOREIGN EXCHANGE IMPACT Previous C1 cost guidance Sensitivity to 1 US cent movement in A$:US$ (12 months) <60 US cents 1.8 US cents Revised C1 cost guidance Sensitivity to 1 US cent movement in A$:US$ (9 months) <70 US cents 1.3 US cents Previous guidance was issued at analyst consensus rates of A$:US$ 0.96 for FY11, current guidance issued at current consensus A$:US$ 1.01. Current spot rate 1.05. OZ MINERALS PAGE 31
CARRAPATEENA CROSS SECTION 6543300N LOOKING NORTH CAR051W1 903m @ 2.15% Cu, 0.66 g/t Au from 608m (incl. 169m @ 4.30% Cu, 0.74 g/t Au from 1174m). CAR050 905m @ 2.08% Cu, 0.98 g/t Au from 487m (incl. 75m @ 4.63% Cu, 1.10 g/t Au from 1203m). -100-500 PLAN N ±50m view Bornite shell in blue Chalcopyrite shell in yellow -1000 Cu values 0.5 1% Cu 1 2% Cu 2 3% Cu >3% Cu OZ MINERALS PAGE 32-1500 0 200m
-100-500 CARRAPATEENA CROSS SECTION 6543400N LOOKING NORTH PLAN N ±50m clip Bornite shell in blue Chalcopyrite shell in yellow Cu values 0.5 1% Cu 1 2% Cu 2 3% Cu >3% Cu -1000 CAR073 905m @ 2.17% Cu, 0.89g/t Au from 506m (incl. 82m @ 4.78% Cu, 1.13 g/t Au from 518m) CAR031W1 410m @ 1.88% Cu, 1.20 g/t Au from 582m (incl. 134m @ 2.85% Cu, 1.48g/t Au from 858m) -1500 0 200m OZ MINERALS PAGE 33
Investor contact: Natalie Worley Head of Investor & External Relations natalie.worley@ozminerals.com THE INFORMATION IN THIS PRESENTATION WHICH REFERS TO MINERAL RESOURCES AND EXPLORATION RESULTS AT CARRAPATEENA IS BASED IN INFORMATION COMPILED BY STUART MASTERS WHO IS A MEMBER OF THE AUSTRALASIAN INSTITUTE OF MINING AND METALLURGY (AUSIMM) (108430). STUART MASTERS IS EMPLOYED BY CS-2 PTY LTD AND IS A CONSULTANT TO OZ MINERALS. HE HAS SUFFICIENT EXPERIENCE WHICH IS RELEVANT TO THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITY WHICH HE IS UNDERTAKING TO QUALIFY AS A COMPETENT PERSON AS DEFINED IN THE 2004 EDITION OF THE AUSTRALIAN CODE FOR REPORTING OF EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES. STUART MASTERS CONSENTS TO THE INCLUSION IN THE REPORT OF THE MATTERS BASED ON HIS INFORMATION IN THE FORM AND CONTEXT IN WHICH IT APPEARS. WITHIN THIS PRESENTATION REFERENCES TO EXPLORATION RESULTS RELATING TO PROMINENT HILL ARE BASED ON INFORMATION COMPILED BY MR MARCEL VAN ECK MSC WHO IS A FULL-TIME EMPLOYEE OF OZ MINERALS, IS A MEMBER OF THE AUSTRALIAN INSTITUTE OF GEOSCIENTISTS AND HAS SUFFICIENT EXPERIENCE RELEVANT TO THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITIES UNDERTAKEN TO QUALIFY AS A COMPETENT PERSON AS DEFINED BY THE JORC CODE (2004). MR VAN ECK HAS CONSENTED TO THE INCLUSION OF THE MATERIAL IN THE FORM AND CONTEXT IN WHICH IT APPEARS. ALL OTHER REFERENCES TO EXPLORATION RESULTS WITHIN THIS PRESENTATION/STATEMENT ARE BASED ON INFORMATION COMPILED BY MR A HOUSTON BSC WHO IS A FULL-TIME EMPLOYEE OF OZ MINERALS, IS A MEMBER OF THE AUSTRALIAN INSTITUTE OF GEOSCIENTISTS AND HAS SUFFICIENT EXPERIENCE RELEVANT TO THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITIES UNDERTAKEN TO QUALIFY AS A COMPETENT PERSON AS DEFINED BY THE JORC CODE (2004). MR HOUSTON HAS CONSENTED TO THE INCLUSION OF THE MATERIAL IN THE FORM AND CONTEXT IN WHICH IT APPEARS.