16 SEPTEMBER 2008 ASX Release Projects on track: Prominent Hill commissioning to commence in October 2008 OZ Minerals has confirmed that its Prominent Hill copper-gold project in South Australia will commence commissioning next month. This follows the successful on-time commissioning of the Company’s Avebury nickel project in Tasmania. The first concentrate from Avebury was shipped to customers in August 2008. “We are aware of rumours in the market that there will be delays at Prominent Hill. There is no basis for these rumours, which we believe may be creating a false market in OZ Minerals’ shares”, said Mr Andrew Michelmore, Managing Director and CEO of OZ Minerals. “The facts are these: · Late last year, Oxiana advised that Prominent Hill would be commissioned in the fourth quarter of 2008; · Prominent Hill will commence commissioning in October 2008, when the crushing circuit will come into operation”, Mr Michelmore added. The Company has previously indicated that expected production from Prominent Hill for 2009 is between 110,000 – 120,000 tonnes of copper in concentrate and 80,000 – 85,000 ounces of gold and no changes to this guidance have been made. Mr Michelmore said “we have previously announced an expected total capital cost of $1.08 billion for the Prominent Hill project. “While the final cost won’t be known with absolute accuracy until the project is complete, the Company does not expect it to be materially different from this indication”, he added. Mr Michelmore noted that “Prominent Hill will make a substantial contribution to OZ Minerals’ production profile, more than doubling the Company’s annual copper output. “We expect copper to generate more than 50% of OZ Minerals’ revenue in 2009, compared to approximately 36% of the combined pro-forma revenue of Oxiana and Zinifex in the first half of 2008,” he said. 080916 ASX RELEASE_PROMINENT HILL COMMISSIONING_160908 02 Mr Michelmore also noted that OZ Minerals closing share price on 15 September of $1.445 was well below the valuation of $3.80 - $4.40 per share determined by Grant Samuel & Associates in the Independent Expert’s Report prepared in May 2008 as part of the documentation for the Zinifex Scheme of Arrangement. “One thing that is clear is that the inherent value of the Company’s assets has not deteriorated in the 4 months since the Independent Expert’s Report was published”, he concluded. For further information please contact: Matthew Foran Richard Hedstrom Group Manager – External Affairs Group Manager – Investor Relations T 61 3 9288 0456 T 61 3 9288 0376
OZL Price at posting:
$14.05 Sentiment: LT Buy Disclosure: Held
