OZL PH stockpiles

With all the misinformation from the interlopers perhaps useful to understand OZL CF potential over the next few years.

OK PH has some big capex this year for the UG mine, but the open pit has closed eliminating a lot of mining costs. All up including the capex we have guidance AISC of 1.20 to 1.30 this year. Pretty good. But next year we continue to process stockpiles without the large UG capex.

Then C starts up. We then have another 3 1/2 years of PH process plant at capacity coincident with Carapateena output. So those 3 1/2 years should have a very high cashflow. Surely both enough time and enough cashflow to get another substantial mine up and running, without necesarily taking on debt, and probably without cutting the dividend.

Our PH stockpiles (mined and hence with low remaining costs to monetarise) are about 100 kt of copper and 400 kOz of gold (93 kt and 380 kOz at 31 July - refer Nov 21st announcement).

A lot made of the PH UG capex by some interlopers, but really minor in context, and already reflected in this years already low AISC. The capex gthat really matters for OZL holders is that at C, and although early days yet no sign of any problems or blowout. Given ACs record I am not expecting much.

Also a big red herring identified in capex poer transmission. Double dipping at best, as new transmission will be off balance sheet, ie opex not capex. Guidance on the relatively minor increase in opex was provided in the recent announcement of the power strategy. Refers todays QR where the C transmission line explicitly stated as being a BOOM contract.

Some big beat ups here by folk not interested in the core (80% plus) OZL story. Special shame on past holders of OZL who actually do know (but selectively ignore) the real story.

Why are these interlopers behaving like this? Perhaps working for BR?

EL