LEVERAGED TO COPPER MATRIX METALS LIMITED PDAC Presentation March 2004
A$ & US$ Copper Price Copper Price since 1 January 2003 in USD and AUD Cents per Pound 1.80 1.60 Australian Dollar Plot 1.40 1.20 USD and AUD on same scale US Dollar Plot 1.00 0.80 Jan-03 Feb-03 Mar-03 Apr-03 May-03 Jun-03 Jul-03 Aug-03 Sep-03 Oct-03 Nov-03 Dec-03 Jan-04 Feb-04 0.60 AUD Copper Price c/lb USD Copper Price c/lb 2
Leverage to Copper Price 30,000,000 Market Capitalisation with Share Turnover Volume 60,000,000 25,000,000 50,000,000 20,000,000 40,000,000 15,000,000 10,000,000 30,000,000 20,000,000 Market Cap. A$ 5,000,000 10,000,000 0 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 0 Market Capitalisation Share Turnover Volume 3
Other Emerging Australian Copper Companies Company ASX Code Location Equinox Resources EQR Zambia Indophil Resources IRN Philippines Tethyan Copper TYC Pakistan Matrix Metals MRX Australia Tritton Resources TTT Australia Universal Resources URL Australia 4
The Oxide Copper Company 5
The Mt Isa Region Australia s premier World Class base metals province Hosts the Mt Isa, Century, Ernest Henry, Cannington mines, plus many others 1.6m tonnes of Cu, Pb & Zn produced in 2002 Under-explored region First class infrastructure and services Matrix holds a strategic position 6
Snapshot of Matrix Listed on ASX in July 2000 Strategic tenement position in Mt Isa region Copper producer from 2000 to 2002 Oxide copper explorer Near term copper producer All assets 100% owned 7
1. Oxide Copper Production Three Components to the Strategy History of copper production White Range Bankable Feasibility Study expected to be completed by June 2004 33 m lbs per annum for 7-8 years on current resources Second project at Mt Watson to follow 2. Oxide Copper Exploration Building on the existing resource base at Mt Watson Drilling prospects in the greater Mt Watson region Expanding resource at White Range Project 3. Primary Sulphide Zone Primary sulphide zone history & potential In negotiation with potential JV partners 8
The Fundamentals Two oxide copper projects in Mt Isa Region White Range and Mt Watson 16+ million tonnes @ 1.1% Cu resource {400m lbs Cu, A$700m in ground value} SX/EW production facility at Mt Cuthbert White Range at advanced Bankable Feasibility status White Range BFS funded by Société Générale Demonstrated Primary Sulphide zone potential 9
Project Locations 10
White Range Project Final Phase of Bankable Feasibility Study 12 million tonnes @ 1.1% oxide copper resource Demonstrated resource growth Bankable Feasibility Study complete in mid 2004 Construction planned to commence in 2004 Production in early 2005 33 m lbs Cu pa (15,000 tonne) cathode for 7 to 8 years based on existing resources Obvious resource growth potential Readily capable of expansion 11
White Range Project Resource Growth Outlook 12
Mt Watson Region 13
Mt Cuthbert SX/EW Facility 14
Production History Defining New Resources 7 year production history at Mt Cuthbert 100% owned SX/EW Facility + Infrastructure (A$20m value) New Discovery in 2001 at Mt Watson Mt Watson resource growing rapidly Achieving ongoing exploration success Feasibility planned for 2005 Development to follow White Range ~ 2005/6 Recent success at Mt Watson well exceeds expectations 15
Mt Watson Area Regional Mineralisation & Targets 16
Mt Watson Resource Growing 17
Mt Watson Western Zone 300% Resource Increase 18
Mt Watson Deposit Overall 65% Resource Increase 19
Primary Sulphide Potential The Next Focus 20
Copper Sulphide Production Historic smelters at both project sites Significant primary zone production history Sulphide mineralisation under all pits mined Geophysical anomalies identified primary targets Primary zone resources at 3 Matrix prospects Chalcopyrite hit at Mt Watson in Dec 03 Very large tenement holding and very active Major JV interest. 21
Production Targets White Range ~ 33 m lbs pa Cu Cathode ~2005 Mt Watson ~ 33 m lbs pa Cu Cathode ~ 2006 Combined 66 m lbs Cathode annually Represents A$100 m per annum revenue White Range Project 8 year mine life, readily capable of expansion Quickly working towards similar life for Mt Watson Project plus the demonstrated exploration upside 22
Outlook for 2004 Complete White Range BFS @ 15,000 tpa Debt & Equity & Off-take Funding for White Range Construction of White Range 2 nd Half 2004 Drilling at Mt Watson to grow resource Mt Watson pre-feasibility study in 2004 Exploration Drilling at both projects Primary Sulphide Zone JV 23
Funding Requirements Company G&A funded White Range Bankable Feasibility Study funded Mt Watson Exploration funded White Range Development A$30m A combination of debt, equity and off-take contribution Mt Watson Feasibility < A$2 m 24
Capital Structure Listed on ASX code: MRX 371.6 million shares Major shareholder 34.4 % - Constellation Copper Corporation Top 20 hold approximately 50% of issued capital Available funds A$7.9m Cash in bank A$6.2m Soc Gen facility A$1.7m 25
A View of Matrix RC drilling at MtWatson The Mt Cuthbert Operation White Range high grade copper Outcrop at White Range Project 26
Matrix Contacts Andrew Chapman Managing Director Phone +61 8 9486 7100 Fax +61 8 9486 7300 Email chapman@matrixmetals.com.au Shane McBride Grey Egerton-Warburton Corporate Finance Director Phone +61 8 9268 2888 Fax +61 8 9268 2830 Email grey_warburton@hartleys.com.au CFO & Company Secretary Phone +61 8 9486 7100 Fax +61 8 9486 7300 Email smb@matrixmetals.com.au 27