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Outlook is still buoyant
Owen Hegarty, CEO, Oxiana.

March 29, 2008

RESOURCES

We believe there's presently a disconnect between the financial markets and the fundamentals. Confidence has been ebbing from the markets, credit is tightening and securities are looking very undervalued. Yet in our industry - mining, resources, commodities - the fundamentals remain sound: demand is strong and supply is still struggling to catch up.

We are long term planners, thinkers and investors. We are resolute in our vision to grow a major mining company, this hasn't changed.

The outlook remains buoyant: we are in for a generation of economic expansion, led by China with India and other developing countries following. This is unstoppable textbook economic growth on a scale not seen before. There are bound to be humps and bumps along the way - and we may be going through one right now. But the sands of time will inevitably wash over this temporary correction.

However we are not completely immune of course to volatile credit and securities markets - you have to ensure you have the right short term strategies - 'double-taking' on investment decisions, shoring up credit lines, communicating with customers, suppliers and all stakeholders, and particularly employees. Equally you also have to be on the front foot, looking for opportunities out there - acquisition, joint venture, farm-ins - where other companies may be under pressure from the markets and need support.

My leadership does not change a great deal in these times but you do need to reassure people the company remains steadfast in its resolve to continue driving forward, growing the business and growing value for all stakeholders. One of our core values at Oxiana is "openness", good communications - everybody feels informed and involved and where they stand. So I insist that the executive team and I have high visibility, high accessibility, plenty of "management by walking around". Nothing helps morale, security and commitment more than communicating directly with your people.