FOR THE THREE MONTHS ENDED 31 DECEMBER 2012

Transcription

1 FOR THE THREE MONTHS ENDED 31 DECEMBER 2012 PROMINENT HILL CONTAINED METAL PRODUCTION DECEMBER 2012 QUARTER FULL YEAR 2012 TOTAL COPPER (TONNES) 23, ,737 OZMINERALS.COM TOTAL GOLD (OUNCES) 32, ,746 C1 CASH COSTS (US cents/lb) EXECUTIVE SUMMARY Prominent Hill Production and C1 cash costs for 2012 met annual guidance with copper production of 101,737 tonnes of copper and 140,746 ounces of gold at a C1 cash cost of US120.0c/lb, with 104,455 tonnes of copper and 146,516 ounces of gold sold during the year. Development of Phase 1 of the decline for the Malu Underground Mine was completed during the quarter with further resource delineation drilling now being undertaken beneath the Malu open pit. This program will be accelerated during 2013, with the objective to produce first stoping ore from the Malu Underground in At Carrapateena, the decision in December 2012 to purchase a tunnel boring machine for the development of the exploration decline marks an important step in accelerating the project. The 2012 Prominent Hill Resources and Reserves Statement shows an increase in underground resources for the Ankata deposit, effectively increasing the life of the Ankata underground by an additional two years. At Carrapateena, the updated Resource Statement for the deposit shows a 43 percent increase in total Indicated and Inferred Resources and a significant extension to the resource envelope. A new regional discovery at the Khamsin prospect was also made in the Carrapateena licences. Prominent Hill production is expected to be between 90,000 and 95,000 tonnes of copper and between 130,000 and 150,000 ounces of gold, consistent with the long term mine plan. The 2013 C1 cash cost guidance is between US$1.50/lb to US$1.65/lb. OZ Minerals has reaffirmed its Corporate Strategy which is attached to this Quarterly Report. Terry Burgess Managing Director and Chief Executive Officer 24 January 2013

2 OZ MINERALS QUARTERLY ACTIVITIES TO 31 DECEMBER 2012 SAFETY OZ Minerals safety performance in 2012 continued the year on year improvement achieved since The total recordable injury frequency rate per one million hours reduced significantly from in 2011 to in 2012 while the lost time injury frequency rate also decreased from 1.50 to There were no permanent or disabling injuries for the year. We continued to implement our safety improvement strategy over the year and were pleased to see significant progress in safety performance. OPERATIONS PROMINENT HILL A continued consistent performance from the Prominent Hill operations during 2012 delivered full year copper and gold production within the company s stated guidance. Copper production of 101,737t and gold of 140,746oz were within our stated guidance at the lower end of 100,000t to 110,000t of copper and between 130,000oz and 150,000oz of gold. C1 cash costs for the 2012 year of US120c/lb were also in-line with revised guidance of US$1.10/lb to US$1.20/lb Guidance - Production In 2013, production guidance for the year is between 90,000t to 95,000t of copper and between 130,000oz and 150,000oz of gold. This year represents a significant investment in the future production capacity of the Malu open pit. Activity levels in the Malu open pit will peak in 2013 with over 90 million tonnes expected to be mined in waste and ore, primarily from Stage 3 of the pit, with an expected strip ratio in the range of to 1. Thereafter, this rate of waste mining will significantly decline. Mining is currently facilitated by a fleet of 49 haul trucks and five primary excavators, which will be maintained at this level during 2013 but will begin to reduce in As a consequence of the geometry of the resource in relation to the waste to be removed, both copper ore mined and its grade are expected to be somewhat lower in 2013, leading to the lower copper production guidance compared to previous years. This is consistent with the long term mine plan. As a result of the phasing of the waste movement program in 2013, copper production is expected to be higher in the second half than the first half of 2013 as waste removal in the first half develops access to larger ore volumes to be mined in the second half of the year. A diagram showing the current open pit mining stage can be seen on slide 7 of the accompanying presentation Guidance - Costs Cash costs in 2013 are expected to be in a range of US$1.50/lb and US$1.65/lb. The increase in costs over 2012 is primarily due to a full year of operations from the Ankata underground mine, increased mining costs largely due to mining more basement waste from deeper in the open pit (compared to previous mining of lighter overburden higher in the pit) and lower payable metal as a result of lower copper production. With lower payable metal production expected in the first half of 2013 as a result of the increased waste mining, C1 costs for the first half of 2013 are expected to be above the annual guidance range of between US$1.50/lb and US$1.65/lb. With higher payable metal production in the second half of 2013, C1 costs would be lower resulting in a full year average between US$1.50 to US$1.65/lb. Please refer to slide 9 in the accompanying presentation for economic assumptions used for this C1 cost guidance. Operations December Quarter 2012 In the December quarter copper and gold production were 23,296t and 32,273oz respectively, which was in line with guidance and the overall mine plan. The lower copper production compared to the previous quarter was primarily a result of lower mined grade from the open pit and the Ankata underground mine. We expect this trend to continue into the first half of For mining and operating statistics please refer to Table 1 on page 8 of this report. Mining Malu open pit During 2012, total material mined of 80.3Mt comprised 7.3Mt of ore and 73.0Mt of waste, an all-time material movement record for the operation. The increased productivity is mainly the result of several initiatives leading to improved availability, utilisation and efficiencies within the open pit operations. Further identified opportunities to improve mining productivity will be implemented in

3 In the December quarter ore mined from the open pit of 1.9Mt was 15.2 percent above the previous quarter although the copper grade mined at 0.84 percent was lower, but in line with the scheduled sequence of mining activities. The lower mined copper grade is expected to continue into the first half of However, the gold grade mined during the quarter was the highest achieved all year this was mainly due to the increased proportion of gold ore mined relative to copper ore. Inter ramp slippage of the south wall During November 2012, a section of the southern wall of the Malu open pit slumped onto and over the access ramp servicing the portal for the Ankata underground mine. The risk of the movement in the wall had been anticipated and was under constant surveillance using remote monitoring instrumentation. Approximately 350,000 BCMs of material were subsequently excavated from the affected slope during November and December. Access to the Ankata portal was re-established within a week following the initial event. Ongoing surveillance, monitoring and risk mitigation work including relieving any geophysical or water pressure in the southern pit wall will continue. Ankata underground mine Mining activities for the quarter focused on extraction of the Irene stope. This is a significantly larger stope than Eve and will provide a further guide to mining conditions and performance underground. Production from Ankata for the quarter was 199,560 tonnes of ore mined at an average copper grade of 2.73 percent with tonnage higher than the previous quarter but in line with the planned grade. Processing The plant continued to perform at a high level of availability, throughput, recovery and efficiency throughout 2012 with 9.6Mt of ore milled. For the December quarter 2.3Mt of ore was milled. Mine feed to the processing plant throughout 2012 was supplemented by a drawdown of ROM stocks. Ankata Resource development Underground resource delineation and grade control diamond drilling of the Ankata Mineral Resource continued with a combined 13,094 metres completed by up to five rigs. Drilling continued to both improve definition and increase confidence in the known Mineral Resource, with significant intercepts listed below and highlighted on slide 10 of the accompanying presentation. Hole Number From Interval Copper (%) PH12RD PH12RD PH12RD PH12RD PH12RD PH12RD Significant intersection: Hole Number From Interval Copper (%) PH12RD Costs C1 cash costs of production for 2012 were US120.0c/lb, at the upper end of guidance of US$1.10/lb to US$1.20/lb. C1 cash costs of production for the quarter were US150.9c/lb. This was higher than the previous quarter primarily reflecting a full quarter of operations from the Ankata underground and lower payable metal production from the open pit. Total mining costs were higher due to increased activity and depth in the open pit with more basement mining as less expensive overburden mining nears completion. This was offset by a higher waste deferral adjustment. The increase in costs were partially offset by a higher by-product credit. Please refer to Table 2 on page 9 for a detailed breakdown of operating costs. MINE DEVELOPMENT MALU UNDERGROUND Malu Underground Resource definition Resource delineation drilling activities on the Malu Underground Mineral Resource commenced during the quarter but were interrupted for part of the quarter due to intensified mine development focused on early access to more favourable long-term drill collar positions. Drilling is expected to resume in early Q with two drill rigs, specifically targeting known higher grade copper zones. Malu resource drilling will ramp-up throughout 2013 as hanging wall collar positions are developed. Three holes were completed with one drill rig for 1,384 metres near the far western Malu / Kalaya Mineral Resource boundary, targeting known higher grade gold areas and potential up-dip extensions of copper mineralisation. Analytical results returned to date have confirmed the presence of gold mineralisation as expected. 3

4 Significant results included: Hole Number From Interval Gold (g/t) PH12RD PH12RD PH12RD PH12RD PH12RD Underground Resource Delineation drilling of the Kalaya Mineral Resource from the Ankata decline was not conducted in the quarter, in favour of Malu and Ankata based drilling. As mentioned in the previous quarterly report the drilling program is expected to take months. Malu Underground Mine 2013 scope of work The scope of work in 2013 for the Malu Underground Mine project is to extend underground development of the Malu Decline into the Malu Underground Hangingwall Decline to provide an improved access location to conduct resource delineation drilling in the western part of the Resource. This will also see the commencement of development of the first ore levels and subsequent pre-production activities such that first stoping ore can be delivered during The expected development costs including resource delineation drilling is expected to be around $60-$70 million for As this expenditure is directly related to the development of the Malu Underground, these costs will be capitalised to the balance sheet. EXPLORATION CARRAPATEENA Exploration decline update In December 2012 OZ Minerals signed a contract with The Robbins Company with the commitment to purchase a remanufactured Tunnel Boring Machine (TBM) with a bore diameter of 5.8 metres. The TBM will accelerate development of the exploration decline to allow further geotechnical testing to be undertaken. The total cost including commissioning is expected to be between $12-15 million and will be commissioned before the end of Expected development rates of the TBM are anticipated to be between 350 and 550 metres per month. Phase 1 includes development down to approximately 625 metres below surface to allow geotechnical testing the TBM is expected be at this level by the end of This would represent a time saving of approximately 12 months over a drill and blast method. The overall cost of the exploration decline is expected to be $ million, including the cost of purchasing the TBM. The cost of developing the exploration decline will be expensed in the accounts as at the time of expenditure. Exploration Exploration drilling during the quarter at Carrapateena continued with four diamond rigs focusing on infill drilling to convert previously announced Inferred Resources to Indicated Resources. Drilling was also underway in the exploration target area to the immediate north to bring this area into Inferred Resource status. This work led to the release of an updated Resource Statement on 21 January A significant part of the original (April 2011) Inferred Resource and also part of the northern exploration target area has now been converted to Indicated Resource status. Additional Inferred Resources have also been defined within the northern exploration target area and also directly beneath the main body of the Indicated Resource. At a 0.7% cut-off the Mineral Resource increased by some 43 percent over the April 2011 estimate, from 203Mt at 1.3% copper, 0.56g/t gold to 292Mt at 1.29% copper, 0.48g/t gold. At a 0.3% cut-off the 2012 Mineral Resource estimate increases to 760Mt at 0.78% copper, 0.30g/t gold. For full details of the Carrapateena Resource Statement go to reserves.html During the quarter, six holes were completed at Carrapateena for 9,861 metres (this included five daughter holes, drilled off previous drill holes), with four holes in progress. Three regional drill holes were completed for an additional 2,682 metres. Significant results received during the quarter included: Hole Number From Interval Copper % Gold (g/t) DD12CAR DD12CAR092W DD12CAR DD12CAR094W DD12CAR DD12CAR , DD12CAR ,

5 Significant intersections for these holes included; Hole Number From Interval Copper % Gold (g/t) DD12CAR DD12CAR091 1, DD12CAR092W DD12CAR DD12CAR094W DD12CAR DD12CAR095 1, DD12CAR DD12CAR DD12CAR106 1, DD12CAR106 1, DD12CAR106 1, Regional OZ Minerals also advised in the 21 January 2013 Carrapateena Resource Upgrade ASX Release of a new regional mineral discovery made at the Khamsin prospect, approximately 10 kilometres north west of the Carrapateena deposit. OZ Minerals first hole, DD12KMS003, returned a significant intersection of % Cu and 0.08 g/t Au from 1,005.4 metres downhole (including % Cu, 0.13 Au g/t from 1,005.4 metres), within a broader mineralised zone of % Cu and 0.08 g/t Au from 1,003 metres downhole. This was an inclined hole that was drilled from the north at -55 to 173. The mineralised intersections contained significant hematite breccia rocks with visual copper sulphide mineralisation. Assays are awaited for the second hole DD12KMS004. Depths to basement vary between 470 metres and 640 metres. Future drilling at Khamsin will be designed to assist in determining the orientation of the mineralisation and aid in targeting of higher grade bornite zones, similar to those occurring at Carrapateena. In addition to the Khamsin discovery, the Fremantle Doctor prospect was also drilled. The Fremantle Doctor prospect is a gravity and structural extension of the Carrapateena gravity feature. Major structural controls on the copper mineralisation at Carrapateena are interpreted to extend as a structural and stratigraphic corridor towards the Fremantle Doctor prospect. At Fremantle Doctor two holes were drilled in late 2012, with the results in the table below. Mineralisation occurs primarily as disseminated chalcopyrite and pyrite hosted within a red earthy hematite altered, granite-dominated breccia. Minor intervals of grey, steely hematite were also observed. Further geophysics and drilling is planned at Fremantle Doctor throughout Please refer to slides 17 and 18 in the accompanying presentation for Khamsin and Fremantle Doctor Prospects. PROMINENT HILL Resource and Reserve On 21 January 2013, OZ Minerals released its Prominent Hill 2012 Annual Mineral Resource and Ore Reserve Statement. Mineral Resources have changed from 272.7Mt at 0.98% copper, 0.7g/t gold for 2,678kt copper and 6.3 million ounces of gold in 2011 to Mt at 0.99% copper, 0.7g/t gold for 2,611kt copper and 5.9 million ounces of gold, mainly as a result of mining depletion. The Ankata Resource increased by 3.3Mt (25 percent) for 32kt copper metal (14 percent) and 14k ounces of gold metal (11 percent) as a result of the ongoing underground diamond drilling program. The increase in resource more than offset underground ore mining from the Ankata Resource during the reporting period. The overall growth in the Ankata Mineral Resource has added approximately two years of life to the Ankata underground mine. Additional underground diamond drilling and results from surface drilling returned in the reporting period within the Kalaya Resource resulted in an increase in contained copper metal by 40kt (8 percent) compared to the previous estimate. There was a reduction of 125k ounces of gold metal (8 percent) as drilling identified some areas to be more copper-rich than gold-rich. The Malu Underground Resource decreased marginally in copper metal by 29kt (2 percent) and 154k ounces (5 percent) as a result of a change in the geological interpretation near the Kalaya Malu Resource boundary. Hole Number From Interval Copper % Gold (g/t) DD12FDR DD12FDR

6 Although production of copper was 106.7kt over the 12 month period to 30 June 2012 on which the Prominent Hill Resources and Reserves are estimated, Ore Reserves have reduced by 35 percent less in copper terms from the 2011 estimate of 72.3Mt at 1.1% copper, 0.6g/t gold for 818kt copper and 1.5Moz gold to 69.8Mt at 1.1% copper and 0.6g/t gold for 748kt copper and 1.3 million ounces of gold. The Ankata Ore Reserve has increased through the upgrading of mineralisation from Inferred to Measured and Indicated Resources. Reductions in the Reserve were partially offset by improved copper metal reconciliation of the Resource model to ore processed. The cut-off date for drilling data for the Statement was 30 June 2012; subsequent reported results were not included. For the full details of the Prominent Hill Mineral Resource and ore Reserve Statement go to reserves.html Surface Exploration All surface drilling around Prominent Hill, including for the IMX joint venture, was suspended from Q to provide an opportunity to review results since 2009 before re-commencing the surface drilling program in At Prominent Hill South, Induced Polarisation (IP) surveys were completed over the remainder of the gravity anomaly where drilling had intersected a 400 metre zone of strong hematite alteration within fragmented rocks. Processing of these data was in progress at quarter s end. testing. This excludes the acquisition costs of the tunnel boring machine. Exploration on global regional exploration in 2013 is expected to be approximately $7 million. SALES & MARKETING Shipments of Prominent Hill concentrates for the quarter totalled 59,953 tonnes, containing 30,973 tonnes copper and 41,906 ounces of gold. In 2012, 209,384 tonnes of copper concentrate was shipped, containing 104,455 tonnes of copper and 146,516 ounces of gold. Realised copper prices closely matched the average LME price for the year. CORPORATE OZ Minerals has reaffirmed its Corporate Strategy which is attached to this Quarterly Report. CORPORATE INFORMATION ISSUED SHARE CAPITAL AT 18 JANUARY 2013 ORDINARY SHARES 303,470,022 SHARE PRICE ACTIVITY FOR THE DECEMBER QUARTER (CLOSING PRICE) HIGH $8.49 LOW $6.65 LAST $7.37 (22 JANUARY 2013) AVERAGE DAILY VOLUME 1.65 MILLION SHARES EXPLORATION BUDGET 2013 In 2013 expenditure on exploration across the group is expected to be $58 million, which includes grassroots, brownfields and delineation drilling and the expenditure on exploration decline at Carrapateena. Exploration expenditure at Prominent Hill including the IMX Joint Venture is expected to be $25 million, of which approximately $17 million is likely to be capitalised and is primarily related to the resource delineation drilling of the Malu Underground. Approximately $8 million will be spent on regional ground south east of the mining lease. Exploration expenditure at the Carrapateena project is expected to be approximately $26 million of which $13 million is directly related to drilling activities and a further $13 million attributed to the development of the exploration decline to allow further geotechnical 6

7 SHARE REGISTRY Link Market Services Limited Level 1, 333 Collins Street, Melbourne VIC, 3000 Australia Telephone Australia: Telephone International: +61 (2) Facsimile: +61 (2) REGISTERED OFFICE Level 10, 31 Queen Street Melbourne, VIC 3000 GPO Box 1291K, Melbourne, VIC 3001 Telephone: +61 (3) Fax: +61 (3) INVESTOR AND MEDIA ENQUIRIES CONTACT INVESTORS James Deo Head of Investor Relations Telephone: +61 (3) MEDIA Rachel Eaves General Manager Public Affairs & Sustainability Telephone: +61 (3) WITHIN THIS RELEASE ARE REFERENCES TO A SUMMARY OF INFORMATION RELATING PROMINENT HILL MINERAL RESOURCES. THE PROMINENT HILL MINERAL RESOURCES ARE SET OUT IN THE PROMINENT HILL MINERAL RESOURCES AND ORE RESERVES STATEMENT AS AT 30 JUNE THIS INFORMATION HAS BEEN COMPILED BY JOHN PENHALL AND ANDREW LORECK WHO ARE BOTH FULL TIME EMPLOYEES OF OZ MINERALS AND MEMBERS OF AUSTRALASIAN INSTITUTE OF MINING AND METALLURGY (AUSIMM). THIS INFORMATION AND EXPLORATION RESULTS RELATING TO PROMINENT HILL HAS BEEN APPROVED FOR RELEASE IN THE FORM AND CONTEXT IN WHICH IT APPEARS BY MR JIM HODGKISON WHO IS A FULL TIME EMPLOYEE OF OZ MINERALS AND HAS SUFFICIENT EXPERIENCE WHICH IS RELEVANT TO THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITY UNDERTAKEN TO QUALIFY AS A COMPETENT PERSON AS DEFINED IN THE 2004 EDITION OF THE AUSTRALASIAN CODE FOR REPORTING OF EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES. INFORMATION IN THIS RELEASE WHICH REFERS TO PROMINENT HILL ORE RESERVES IS A SUMMARY OF INFORMATION RELATING TO ORE RESERVES AS SET OUT IN THE PROMINENT HILL MINERAL RESOURCES AND ORE RESERVES STATEMENT AS AT 30 JUNE THIS INFORMATION HAS BEEN APPROVED FOR RELEASE IN THE FORM AND CONTEXT IN WHICH IT APPEARS BY MR JUSTIN TAYLOR WHO IS A FULL TIME EMPLOYEE OF OZ MINERALS AND HAS SUFFICIENT EXPERIENCE WHICH IS RELEVANT TO THE STYLE OF MINERALISATION AND TYPE OF DEPOSIT UNDER CONSIDERATION AND TO THE ACTIVITY UNDERTAKEN TO QUALIFY AS A COMPETENT PERSON AS DEFINED IN THE 2004 EDITION OF THE AUSTRALASIAN CODE FOR REPORTING OF EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES. WITHIN THIS RELEASE ARE REFERENCES TO EXPLORATION RESULTS RELATING TO PROMINENT HILL AND CARRAPATEENA 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. THE INFORMATION IN THIS RELEASE WHICH REFERS TO CARRAPATEENA MINERAL RESOURCES IS BASED ON 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 AUSTRALASIAN CODE FOR REPORTING OF EXPLORATION RESULTS, MINERAL RESOURCES AND ORE RESERVES (JORC 2004). 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. STUART MASTERS BSC (GEOLOGY), CFSG, HAS OVER 26 YEARS OF RELEVANT EXPERIENCE AS A GEOLOGIST INCLUDING 9 YEARS IN IRON-OXIDE-COPPER-GOLD STYLE DEPOSITS. STUART MASTERS HAS VISITED SITE ON MANY OCCASIONS SINCE OZ MINERALS ACQUIRED THE PROJECT.ALL OTHER REFERENCES TO EXPLORATION RESULTS WITHIN THIS RELEASE 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 WITHIN THIS RELEASE REFERENCES TO EXPLORATION RESULTS RELATING TO PROMINENT HILL AND CARRAPATEENA. OZMINERALS.COM 7

8 OZ MINERALS PROMINENT HILL PRODUCTION & COSTS Table 1 Operating Statistics QUARTER ENDED YEAR TO DATE Mar 12 Jun 12 Sep 12 Dec 12 Dec 11 Dec 12 MINED MALU ORE 1,945,417 1,699,331 1,712,058 1,972,624 11,333,854 7,329,430 (Tonnes) ANKATA ORE 17,653 77, , , ,965 WASTE 16,102,251 17,755,300 19,442,709 19,709,691 57,683,667 73,009,951 MINED GRADE MALU COPPER (%) ANKATA COPPER (%) GOLD (G/T) SILVER (G/T) ORE MILLED (TONNES) 2,460,397 2,425,495 2,433,836 2,328,597 9,891,819 9,648,325 MILLED GRADE COPPER (%) GOLD (G/T) SILVER (G/T) RECOVERY COPPER (%) GOLD (%) SILVER (%) COPPER CONCENTRATE TONNES 55,322 51,466 49,633 45, , ,355 PRODUCED CONCENTRATE COPPER (%) GRADE GOLD (G/T) SILVER (G/T) CONTAINED METAL COPPER (TONNES) 27,182 25,521 25,738 23, , ,737 IN CONCENTRATES PRODUCED GOLD (OZ) 38,887 34,475 35,111 32, , ,746 SILVER (OZ) 194, , , , , ,998 CONCENTRATE SOLD (DM TONNES) 41,696 64,790 42,945 59, , ,384 8

9 Table 2 Operating Costs ( C1 ) QUARTER END YEAR TO DATE US cents per pound Mar 12 Jun 12 Sep 12* Dec 12 Dec 11 Dec 12 MINING COSTS DEFERRED MINING (45.1) (75.6) (93.3) (103.7) (2.6) (78.3) ORE INVENTORY ADJ (2.7) (17.3) 11.1 TOTAL MINING COSTS TOTAL SITE PROCESSING COSTS TC AND TRANSPORT NET BY-PRODUCT CREDIT (INCL PROCESSING/TC/RC/TRANSPORT) (118.5) (105.6) (110.1) (118.4) (112.8) (113.1) OTHER DIRECT CASH COSTS TOTAL C1 COSTS ROYALTIES OTHER INDIRECT COSTS TOTAL CASH COSTS D&A OTHER NON CASH COSTS (3.3) 2.1 TOTAL PRODUCTION COSTS * Includes pre commissioning production of 4,105 tonnes of copper from the Ankata mine. 9

10 APPENDIX 1 REAFFIRMATION OF OZ MINERALS' STRATEGY JANUARY 2013 BACKGROUND The OZ Minerals' Strategy was presented to the market in November 2009 and has been well enunciated thereafter in subsequent announcements and presentations. This Strategy has been reviewed regularly, both by the Board and by management, taking into consideration changes in market conditions and outlook and the activities of the Company. The key facets of the Strategy have been found to be sound with only minor adjustments made and are stated below, together with a review of the actions we have taken towards the implementation of our Strategy. STRATEGY The objective of the Strategy is to deliver Superior Shareholder Returns based upon a foundation built on Governance and Zero Harm with the following five key elements: Focus on Copper Maximise Potential of Assets Build a Project Pipeline Invest in Exploration Exercise disciplined Capital Management The operating and investment criteria to deliver the Strategy are as follows: Commodity primary focus on copper, with gold as the preferred by-product Scale projects to have, or with the potential to have, copper production of 50,000 to 150,000 tonnes per year Geography in countries with low to medium sovereign risk Project preference for operating or near developed projects, but all options including grassroots exploration meeting the key criteria would be considered Project Share preference for control, but minority interest would be considered DISCUSSION Our focus on copper was premised on an ongoing and increasing demand for copper, particularly from China, and other emerging economies, as a result of major urbanisation and urban regeneration programs, coupled with the challenges to supply this increasing demand from existing mining operations and the development of new copper projects. Since 2009, the basis for our Strategy has been well supported by the continued high demand for copper, particularly in China, and supply struggling to meet forecast levels with existing operations falling short of expectations and with many new projects over budget, delayed or postponed. Our preference for copper over other base metals or bulk commodities has continued to be supported by the superior copper price performance compared with other base metal prices, which have been restricted by oversupply or the threat of oversupply (particularly from China) of the commodity or reduced demand for the lower value bulk commodities. We continue to believe that the outlook for copper will remain favourable for many years to come because of a continued demand for the metal and an ongoing under-supply to the market. Gold remains the preferred by-product, particularly with the fall in metal prices of other by products such as cobalt (Central Africa) and molybdenum (South America). Since 2009, we have maximised production from Prominent Hill with the plant consistently milling and treating 25% above nameplate capacity. The development of new underground resources at Ankata and, more recently, the potential of developing below the open pit with the Malu Underground should add significant life to operations at Prominent Hill. The acquisition of Carrapateena in May 2011 is clearly in line with our Strategy and adds a significant opportunity to our project pipeline with the potential to become a long-term copper mine in one of the safest jurisdictions in the world. Significant progress has been made to date with resource definition and project development. We expect to see the next phase of this project the development of the exploration decline to commence before the end of 2013, subject to regulatory and community approval, and we continue to take all steps possible to speed the completion of exploration and evaluation so that a decision to mine can be taken. Our recent regional exploration results at Khamsin are also highly encouraging. Our other business development activities and our investments have been highly disciplined with regard to the core requirement of acquiring value-adding assets, while at the same time meeting our criteria of commodity, scale, geography and project status. Our investment in Sandfire has been profitable, and we continue to monitor operational and exploration progress. 10

11 APPENDIX 1 In terms of project scale, most projects reviewed over the last three years have been in the lower half of our preferred production range, namely 50, ,000 tonnes of copper per year and we expect this to continue to be the case. On occasion, projects under review have demonstrated superior performance in other commodities (for example zinc) but not in copper; met basic investment parameters during our thorough due diligence process but were in jurisdictions deemed to be high risk (for example DRC and Saudi Arabia); or while meeting all other requirements have simply not shown the required return based upon the acquisition cost, anticipated capital and/or operating costs with realistic long term commodity price assumptions at normal cost of capital rates and taking into consideration operating and other associated risks. With respect to the projects that we reviewed but did not pursue, judging from the performance of the assets since that time, we have seen none which would have enhanced shareholder value if we had proceeded with a transaction; indeed we believe a number demonstrated that they have destroyed significant shareholder value for their owners or eventual acquirers. Development based upon exploration success remains a very cost effective way of building value within a mining company and therefore the focus on this aspect of the Strategy, and as a result expenditure, has been significant, particularly in the region around Prominent Hill. To date, while there have been technical achievements with the exploration around Prominent Hill, there has not been commercial success, which has been disappointing. Regional exploration at Carrapateena is still in the early stage, as are our current endeavours in South America, but the initial drilling results around the Carrapateena region have been very encouraging. Since 2009, excess cash funds have been returned to shareholders either through a capital return ($389 million) and an on-market share buyback ($200 million). With the Dividend Policy of distributing between 30%-60% of normal operating profits, since 2009 a total of $445 million (equivalent to $1.40 per share) has been paid to shareholders as dividends. At the end of 2012, our balance sheet remains strong with no drawn debt and a cash balance of about $660 million. We will continue to hold this cash to ensure that we can take advantage of opportunities that meet our strategic objectives and ensure that we have funding in place for our organic growth projects at Carrapateena and Malu Underground, with these two projects seeing increasing activity with the aim of accelerating production, and therefore expenditure, in These two projects currently demonstrate better returns for the use of funds than acquisition opportunities that we have reviewed in the past. 11