big c, page-31

Some comments on your further work HT1.

BHPB's WACC is estimated to be somewhere between 8 and 10% depending on timing and who is making the assumptions.... so 9.88%(or say a round 10%) should not be too far off the mark for OZL for analysis purposes.

Regarding gold & copper price assumptions they are difficult to look at in isolation, because of how the A$:US$ relationship is likely to move in the opposite direction. As the US$ price of oil, gold, iron ore, coal, copper etc rises so too do commodity currencies like ours and Canada. Conversely they fall as the commodity prices retreat in US$ terms. The problem therefore is to work out assumptions on currency to match your future year estimates of copper and gold prices.

If you look at page 30 of TB's presentation at the recent Global M&M conference http://www.ozminerals.com/Media/docs/OZ_2011BMO_Feb-March-f51cadd8-c1bc-4776-b59d-5648bf14287d-0.pdf

you can see OZL's 2011 EBIT sensitivity estimates:-

AUD:USD +/- 1c ($12.6 million)

Copper +/- 5% $50.8 million

Gold +/- 5% $14.3 million

Based on figures as at 31 December 2010

AUD:USD 1.0172

Copper US$4.41/lb

Gold US$1,410/oz