0 Diggers & Dealers Presentation 5 August 2008 Mike Gloyne - General Manager Operations
Forward Looking Statements 1 This presentation includes forward-looking statements as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this presentation, including, without limitation, those regarding Moly Mines future expectations. Readers can identify forward-looking statements by terminology such as aim, anticipate, assume, believe, continue, could, estimate, expect, forecast, intend, may, plan, potential, predict, project, risk, should, will or would and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of Moly Mines suppliers and service providers to fulfil their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labour shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.
Spinifex Ridge Molybdenum Project Investment Highlights 2 Attractive location, environmental approval received and final Part IV/works approvals in process, 70% of capex awarded/ready to award plus, mining, roasting and off take contracts executed. Sustained sector outlook with continuing strong demand, constrained supply and strong price fundamentals. Poised to become the 1st major new primary Mo producer, with 23 year Reserve mine life with substantial resource tail. Operating contracts provide cost certainty. Substantial by-product credits. 20Mtpa to 33Mtpa expansion potential year 5. Significant potential Project credits from iron ore mineralisation.
Spinifex Ridge Molybdenum Project World Class Partners 3 Incentive based EPCM agreement for project delivery and execution. 7 year mine operations agreement. ThyssenKrupp (Polysius) (Primary Crusher, Ball Mills, HPGR s), Metso (Secondary Crusher), Ausco (Village Accommodation) Molymet, the worlds largest independent toller of Mo concentrates, ThyssenKrupp, volume and cashflow certainty, Global managers of the debt and equity funding package for Spinifex Ridge,
Spinifex Ridge Molybdenum Project Mineral / Ore Reserves & Mineral Resources 4 Reserves JORC/NI43-101 classification Mt Mo% Cu% Ag g/t Proven reserves 199.7 0.06 0.10 1.5 Probable reserves 251.1 0.04 0.07 1.1 Total 450.8 0.05 0.08 1.3 Resources JORC/NI43-101 classification Mt Mo% Cu% Ag g/t Measured resources 206.8 0.06 0.10 1.5 Indicated resources 445.4 0.04 0.07 1.1 Total 652.2 0.05 0.08 1.3 Inferred resources 399.0 0.04 0.07 1.1
Spinifex Ridge Molybdenum Project Construction Ready 5 Port Hedland (160kms) Services corridor Power Station Pit Office/ Workshops Waste 2 Waste 1 ROM Camp Tunnel Pit Dry Stack Tailings Plant & Administration Administration Mo / Cu Regrind & Flotation Tailings Thickener Stockpile Waste 3 North Ball & SAG Mills HPGR Mill Secondary Crusher 23 Year Reserve + Resource tail 10 Year
Spinifex Ridge Molybdenum Project Execution & Development Timetable 6 Long Lead Items Ordered Feasibility Study Completed Capital Cost Control Est. Key Contract Completion Environmental Approvals Project Funding Site Construction Activities Commissioning Production Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2007 2008 2009 2010
Molybdenum a metal for our time What is Molybdenum? 7 Molybdenum Output Flow-Chart Spinifex Ridge Copper/Molybdenum Producer Highlights Moly is primarily used as an alloying agent in steel or as a catalyst in chemicals Crushing, Grinding, Flotation Sublimation and Further Processing Pure Oxide Roasting Lubricants, Chemicals, Mo Metal Low Cu Concentrate Technical Molybdenum Oxide Oxide Powder and Briquettes Bags, Drums, Cans Crushing, Grinding, Flotation Leaching Converting High Cu Concentrate FeMo Bags, Drums Moly offers very attractive properties Fourth highest melting point of any metal on the periodic table Anti-corrosive Weldability Flexibility Hardness Low substitution risk Unique properties that satisfy increasing performance requirements Potential substitutes are more costly and/or follow same commodity cycle
Molybdenum a metal for our time Diversified End-Use 8 Global economies demanding more molybdenum Stainless and low alloy steels will continue to grow supporting molybdenum s traditional applications. BUT. The Energy Industry to emerge as a major end user of molybdenum products High-speed & tool steels Moly Metal Superalloys Castings 6% 11% 4% 4% Chemicals 5% 2% 28% Other Low Alloy Steels 40% Stainless Steel Energy Industry Pipelines Sour oils & gases (high sulphur) Global Warming Desalination Automobile Industry Nuclear Power Piping Shells & tubes ULSD Ultra low sulphur diesel Catalysts Energy Industry accounts for 35-40% of global Moly demand
Molybdenum a metal for our time Market Highlights 9 Supply and Demand CAGR Demand Estimates: 5 6% Existing Production Sources Are At Capacity Primary mines require capital intensive expansions By-product producers have high graded & production stagnant Chinese industry consolidating, export quota s & tariffs applied No significant new supply before 2011 Production costs are rising, energy intensive industry New projects are capital intensive Pricing June 2008 Spot Price US$33.20 /lb 3 Year Average US$30.00 /lb 5 Year Average US$26.10 /lb Long Term Estimate US$20.00+ /lb
Industry Overview Growing Supply Defecit 10 Highlights Estimated committed supply growth includes planned expansions of existing primary and by-product mines Moly consumption is expected to grow at 5-6% CAGR through 2015 Cumulative supply deficit of 70-100Mlb expected by 2012, growing to 230-300Mlb by 2015 Short fall in future supply can only be met by NEW production from NEW mines Only 4 major new primary mines under consideration to help fill this deficit
Industry Overview China Growth Supported by Stability from West 11 Moly Consumption Dominated by the Big Four Japan China is Expected to Drive Demand Growth ~ 2015 Japan Other China Other China 21% 29% 15% 17% 18% 20% 25% 11% 14% 30% 2007 W Europe USA W Europe USA Highlights Western Europe, USA and Japan accounted for 62% of total consumption in 2007, China consumed 17% World CAGR of 6.6% since 2002 China CAGR of 24% since 2002 Strong global demand growth since the early 2000s Continued strong demand growth from BRIC markets driven by urbanization, development in stainless, carbon and alloy steels China to lead world growth at estimated 12 15% CAGR through 2015 Developing steel industries key growth driver (2006-2012 CAGR of 17%) 8-9% growth expected for low alloy steels and chemicals Western Europe: Estimated 3 4% CAGR through 2015 Stainless steel represents ~50% of total moly demand Automotive industry (low alloy steels) also important contributor to demand Moly bearing grades becoming increasingly popular USA: Estimated 2 3% CAGR through 2015 Comparatively even distribution between end segments Strong environmental regulations driving growth (chemicals)
Iron Ore At Spinifex Ridge 12 Highlights Results Major synergies for the Spinifex Ridge operation Potential credits to molybdenum production Resource delineation drilling required Airstrip Mine Village General / Misc. Leases Mining Leases Fe Area 2 Process Plant Waste Tailings S p i n i f e x Fe Area 1 Mo Pit 0 1500 R i d g e Waste metres Iron Ore Drilling Iron Formation 55 metres @ 64.3% Fe from 0m 19 metres @ 61.6% Fe from 3m 29 metres @ 58.3% Fe from 0m including 4 metres @ 63.1% Fe from 0m and 11 metres @ 61.2% Fe from 17m 18 metres @ 58.3% Fe from 7m including 8 metres @ 61.4% Fe from 11m 14 metres @ 55.6% Fe from 2m 16 metres @ 56.0% Fe from 0m 18 metres @ 54.3% Fe from 0m 7 metres @ 55.0% Fe from 1m 106 metres @ 52.8% Fe from 0m including 3 metres @ 65.4% Fe and 47 metres @ 65.8% Fe 72 metres @ 60.7% Fe from 0m including 42 metres @ 66.2% Fe and 9 metres @ 60.2% Fe June 2008 Results
Moly Mines Limited Corporate Structure 13 Shares on issue: 86,191,677 ASX Listed: 54M TSX Listed: 32M Options: 15,425,000 Fully diluted issued capital: 101,616,677 Board/Staff (inc all options) : 16% Cash on hand: A$48M Major Shareholders: 19.9% - Harbinger Capital 7.2% - CIBC Mellon 5.8% - Oppenheimer Funds Broker Coverage: Paradigm Capital Inc. Haywood Securities Inc. Wellington West Capital Markets Inc. Trading Symbols: ASX: MOL, TSX: MOL, FWB: HJ1
Moly Mines Limited Contact information 14 50 Kings Park Rd, West Perth, WA, 6005, AUSTRALIA Telephone: +61 8 9429 3300 Fax: +61 8 9429 3399 Suite 1801, Level 18, 80 Richmond St West, Toronto, Ontario, CANADA Telephone: +1 416 777 1801 Fax: +1 416 777 1802 Email: info@molymines.com Website: http://www.molymines.com Stock market codes: ASX: MOL, TSX: MOL, FWB: HJ1
Moly Mines Limited Ore/Mineral Reserves & Mineral Resources 15 Spinifex Ridge Molybdenum / Copper Competent Person Statement The information contained in the report to which this statement is attached relating Mineral Resources and Mineral / Ore Reserves is based on information compiled and verified under the supervision of Dr Derek Fisher who is a Fellow of The Australasian Institute of Mining and Metallurgy. Dr. Fisher is CEO of Moly Mines Limited and 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 and as a Qualified person for purposes of National Instrument 43-101 of the Canadian Securities Administrators. Dr Fisher consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Mineral Resource estimates was prepared under the supervision and based on information compiled by Mr Phil Jankowski, MAusIMM (CP), who is an employee of SRK Consulting and has been engaged by Moly Mines Limited in such capacity. Mr Jankowski 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 Identified Mineral Resources and Ore Reserves (JORC Code) and as a Qualified person for purposes of National Instrument 43-101 of the Canadian Securities Administrators. Mr Jankowski consents to the inclusion in this release of the matters based on his information in the form and context in which it appears. The grades were estimated by SRK into the block model by Ordinary Kriging. Geological data verification and QA/QC of the drill hole results were described in the report titled Spinifex Ridge Mo-Cu Deposit, Western Australia, Updated NI 43-101 Technical Report prepared by SRK and filed on SEDAR in May 2008. Spinifex Ridge Iron Ore Competent Person Statement The information in this report that relates to Exploration Results is based on information compiled by Dr Derek Fisher who is a Fellow of The Australasian Institute of Mining and Metallurgy. Dr Fisher is Chief Executive Officer of Moly Mines Limited, and 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 Reserve s and as a Qualified Person for purposes of National Instrument 43-101 of the Canadian Securities Administrators. Dr Fisher consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.